EU Finance Ministers have made significant updates to the European Union’s list of non-cooperative tax jurisdictions, resulting in Fiji and Samoa being removed from the blacklist while Viet Nam and the Turks and Caicos Islands have been newly added. This revision underscores the EU’s dedication to enforcing good governance in taxation as part of a broader effort to combat tax fraud, evasion, and avoidance.
The latest changes to Annex I, which identifies jurisdictions deemed non-compliant in tax matters, reflect a measured approach by the Council. Fiji, Samoa, and Trinidad and Tobago have been cleared from the list following their successful resolution of longstanding issues in their tax practices. The European Commission emphasized that these removals are a positive step forward, demonstrating the constructive role that the EU’s blacklisting can play in encouraging jurisdictions to adhere to international tax standards.
Conversely, Viet Nam and the Turks and Caicos Islands have been placed on Annex I due to their failure to meet established international benchmarks concerning tax transparency and fair taxation. The Council expressed disappointment over these developments and urged both jurisdictions to collaborate with the EU’s Code of Conduct Group and other international bodies to address the identified shortcomings.
Following the recent changes, Annex I now includes ten jurisdictions: American Samoa, Anguilla, Guam, Palau, Panama, the Russian Federation, Turks and Caicos, U.S. Virgin Islands, Vanuatu, and Viet Nam. These jurisdictions will be monitored to ensure compliance with international tax standards.
Meanwhile, Annex II, which lists cooperative jurisdictions, has benefited Seychelles and Antigua and Barbuda, both of which have successfully aligned their practices with international standards on information exchange. Additionally, Brunei Darussalam will be given more time to adjust its preferential tax regime considered harmful.
Annex II currently consists of nine jurisdictions: Belize, British Virgin Islands, Brunei Darussalam, Eswatini, Greenland, Jordan, Montenegro, Morocco, and Türkiye. The EU plans to keep a close watch on the commitments made by these countries.
The EU’s process for maintaining its list of non-cooperative tax jurisdictions is a collaborative initiative led by the Council, with technical support from the European Commission. The list is reviewed biannually to ensure it reflects current tax governance trends and remains accurate.