The list of non-cooperative jurisdictions does not apply to EU member states, including Cyprus. Member states are already meeting the tax requirements now that the various BEPS measures have been introduced in the EU through several directives. This is what state secretary Van Rij of Finance writes in the note following the report on the approval act of the tax treaty with Cyprus.
According to Van Rij, Cyprus is associated with tax avoidance because of the high incoming and outgoing foreign direct investment, royalties, interest and dividend flows. The Dutch commitment in the negotiations is explicitly determined by the desire to prevent improper use and abuse of the tax treaty. In line with the Dutch Treaty policy, the treaty includes all measures that have been concluded in the BEPS reports that are at least necessary to adequately combat treaty abuse (the so-called ‘minimum standard’).
The government has also not received any signals that Cyprus would not adequately cooperate with the sanctions measures against Russia.