The EU has added Vietnam and the Turks and Caicos Islands to its tax haven blacklist due to their failure ‘to comply with internationally agreed standards on tax transparency and fair taxation’.

Tax haven - Photo by John Prefer on Unsplash

The lis, which reflects the EU’s commitment to tax transparency and fair taxation globally, is based on a process of screening according to internationally accepted tax good governance criteria.

Based on the progress made by the jurisdictions concerned, EU finance ministers decided to remove Fiji, Samoa and Trinidad and Tobago from Annex I (list of non-cooperative jurisdictions) after they successfully addressed long lasting deficiencies. This reflects efforts made by partner countries and the impact that the EU list can have in supporting the uptake of international standards. The update also registers positive developments in some other jurisdictions in Annex I, reflecting ongoing efforts towards addressing outstanding areas of concern.

The Council has added Vietnam and the Turks and Caicos Islands to Annex I (list of non-cooperative jurisdictions) due to failure to comply with internationally agreed standards on tax transparency and fair taxation. The Council says it regrets these developments and has invited both jurisdictions to engage with the EU’s Code of Conduct Group and other competent international fora to resolve these issues.

Following these changes, the list of non-cooperative jurisdictions comprises 10 territories: American Samoa, Anguilla, Guam, Palau, Panama, the Russian Federation, Turks and Caicos, US Virgin Islands, Vanuatu and Viet Nam.

Additionally, changes were also made to the state of play document (Annex II), which reflects the ongoing EU cooperation with its international partners and lists pending commitments. Its purpose is to recognise ongoing constructive work in the field of taxation, and to encourage the positive approach taken by cooperative jurisdictions to implement tax good governance standards. Antigua and Barbuda and The Seychelles are being removed from Annex II after taking the necessary steps to ensure compliance with the international standard on exchange of information on request. In view of the steps already taken, Brunei Darussalam has been granted additional time to deliver on its commitment to amend its harmful preferential tax regime.

As a result, Annex II currently includes 9 jurisdictions: Belize, British Virgin Islands, Brunei Darussalam, Eswatini, Greenland, Jordan, Montenegro, Morocco and Türkiye. The EU will closely monitor these commitments and continue to actively engage with these partner countries.

The EU list is updated twice a year, to reflect changes in jurisdictions’ tax policies and cooperation levels. This ensures that it remains relevant and accurate over time.

EU list of non-cooperative jurisdictions (background information)

Code of Conduct Group (Business Taxation)

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