The European Union’s Finance Ministers have recently made important updates to the list of non-cooperative tax jurisdictions, highlighting the bloc’s ongoing commitment to promoting good governance in taxation. As part of these updates, Fiji and Samoa have been removed from the blacklist, while Viet Nam and the Turks and Caicos Islands have been added for failing to meet international tax standards.
The adjustments to Annex I, which designates jurisdictions as non-compliant in tax matters, reflect a constructive approach from the Council. Fiji, Samoa, and Trinidad and Tobago were cleared after successfully addressing longstanding tax issues. The European Commission hailed these removals as a positive advancement, illustrating how the EU’s blacklisting can effectively encourage jurisdictions to conform to international tax standards.
Conversely, Viet Nam and the Turks and Caicos Islands find themselves on Annex I due to their non-compliance with tax transparency and equitable taxation norms. The Council expressed disappointment at these developments and urged both regions to work with the EU’s Code of Conduct Group and other global entities to rectify their deficiencies.
Following the recent revisions, Annex I now comprises ten jurisdictions including American Samoa, Anguilla, Guam, Palau, Panama, the Russian Federation, the Turks and Caicos Islands, U.S. Virgin Islands, Vanuatu, and Viet Nam. These territories will be subject to ongoing scrutiny to ensure adherence to international tax standards.
On a more positive note, Annex II, which lists cooperative jurisdictions, has seen progress with Seychelles and Antigua and Barbuda successfully aligning their tax practices with international norms regarding information exchange. Additionally, Brunei Darussalam has been granted extra time to rectify its preferential tax regime, which has been deemed harmful.
Currently, Annex II includes nine jurisdictions: Belize, British Virgin Islands, Brunei Darussalam, Eswatini, Greenland, Jordan, Montenegro, Morocco, and Türkiye. The EU intends to closely monitor the commitments made by these nations.
This transparent and systematic approach by the EU in maintaining its list of non-cooperative tax jurisdictions not only reflects a commitment to fairness and compliance but also encourages improvement among nations to meet global tax governance expectations. The biannual review process ensures that the list remains relevant and accurate, contributing positively to international tax collaboration efforts.