UK and International Tax news

EU Updates List Of Non Cooperative Jurisdictions For Tax Purposes

Thursday 10th October 2024

The Council of the EU has issued its updated list of non-cooperative jurisdictions for tax purposes.

The EU list of non-cooperative jurisdictions for tax purposes was established in December 2017. It is part of the EU’s external strategy on taxation and aims to contribute to ongoing efforts to promote tax good governance worldwide. Jurisdictions are assessed on the basis of a set of criteria laid down by the Council. These criteria cover tax transparency, fair taxation and implementation of international standards designed to prevent tax base erosion and profit shifting.

The aim of the EU list of non-cooperative jurisdictions, which is published as an annex to conclusions adopted by the Ecofin Council (Annex I), is not to name and shame countries, but to encourage positive change in their tax legislation and practices through cooperation. Jurisdictions that do not yet comply with all international tax standards but have committed to implementing reforms are included in a ‘state of play document’ (Annex II).

Work on the list is a dynamic process. Since 2020, the Council has updated the list twice a year and the next revision of the list is scheduled for February 2025. The Council’s decisions are prepared by the Council’s code of conduct group which is also responsible for monitoring tax measures in the EU member states. The code of conduct group is cooperating closely with international bodies such as the OECD Forum on Harmful Tax Practices (FHTP) to promote tax good governance worldwide.

The Council has removed Antigua and Barbuda from its latest list (Annex I) which now includes 11 jurisdictions, including American Samoa, Anguilla, Fiji, Guam, Palau, Panama, Russia, Samoa, Trinidad and Tobago, US Virgin Islands and Vanuatu.

Antigua and Barbuda were included in the EU list of non-cooperative jurisdictions for tax purposes in October 2023, after a negative assessment from the OECD Global Forum with regard to exchange of information on request. Following changes to the applicable rules in Antigua and Barbuda, the Global Forum has granted it a supplementary review, which will be undertaken in the near future. Pending the outcome of this review, Antigua and Barbuda have been included in the relevant section of annex II.

Two jurisdictions Fiji and Palau, listed for an extended period of time, have made promising steps towards compliance with the listing criteria, and this has been reflected in their entries in the list.

In addition to the list of non-cooperative tax jurisdictions, the Council approved the usual state of play document (annex II) which reflects the ongoing EU cooperation with its international partners and the commitments of these countries to reform their legislation to adhere to agreed tax good governance standards. Two jurisdictions, Armenia and Malaysia, fulfilled their commitments by amending a harmful tax regime, and will be removed from the state of play document.

In the light of recent reassurances, Vietnam has been given more time to comply with its commitment on country-by-country reporting and will be reassessed in the next update, planned in February 2025.

If you would like more information on the above, please contact Keith Rushen on 0207 486 2378.

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