Luxembourg, 8 October 2024
Today, the EU Ecofin Council removed Antigua and Barbuda from the EU list of non-cooperative jurisdictions for tax purposes. With these updates, the list consists of the following 11 jurisdictions:
- American Samoa
- Anguilla
- Fiji
- Guam
- Palau
- Panama
- Russia
- Samoa
- Trinidad and Tobago
- US Virgin Islands
- Vanuatu
The Council regrets that these jurisdictions are not yet cooperative on tax matters and invites them to improve their legal framework in order to resolve the identified issues.
Reasons for removing Antigua and Barbuda from the list
Antigua and Barbuda was 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 has been included in the relevant section of Annex II.
In addition, two jurisdictions that have been listed for an extended period of time, namely Fiji and Palau, have made promising steps towards compliance with the listing criteria, and this has been reflected in their entries in the list.
State of play document (Annex II)
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.
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 principles.
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.
Background
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 chair of the code of conduct group conducts political and procedural dialogues with relevant international organisations and jurisdictions, where necessary.
Work on the list is a dynamic process. Since 2020, the Council updates the list twice a year. The next revision of the list is scheduled for February 2025.
The list is set out in Annex I of the Council conclusions on the EU list of non-cooperative jurisdictions for tax purposes. The conclusions also include a state-of-play document (Annex II) identifying cooperative jurisdictions which have made further improvements to their tax policies or related cooperation.
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.
EU Commission: Member States update EU list of non-cooperative tax jurisdictions
Brussels, 8 October 2024
As part of the EU’s work to promote tax transparency and fair taxation globally, Member States have today updated the EU list of non-cooperative jurisdictions for tax purposes. Antigua and Barbuda was removed from Annex I (list of non-cooperative jurisdictions) after being granted a supplementary review by the Global Forum on Tax Transparency and Exchange of Information with regard to exchange of information on request. Pending the results of the review, Antigua and Barbuda will remain on Annex II (state of play of commitments).
Today’s update takes the number of countries on the EU list (Annex I) to 11: American Samoa, Anguilla, Fiji, Guam, Palau, Panama, the Russian Federation, Samoa, Trinidad & Tobago, US Virgin Islands, and Vanuatu.
Additionally, 9 jurisdictions now feature in Annex II based on commitments they have taken to improve their tax good governance. The EU will closely monitor these commitments to make sure they are followed up on.
The primary objective of the EU list is to encourage jurisdictions to implement tax good governance standards to tackle tax fraud, evasion, and avoidance worldwide. It is based on a thorough process of screening, assessment, and monitoring according to objective, clear and internationally recognised criteria (tax transparency, fair taxation, implementation of the anti-BEPS minimum standards). The EU listing process provides a framework for dialogue, outreach and cooperation between the EU and international partners on important tax issues. As a result of unprecedented engagement, many jurisdictions have taken major steps to stop harmful tax practices and improve global tax transparency.
As part of the EU listing process, the Commission provides considerable support to third countries in strengthening their tools against tax abuse, as well as technical assistance to those that need it. The Commission is also working with Member States to further strengthen the EU listing criteria to ensure greater tax transparency and fair and effective taxation. Work towards more coordination on tax defensive measures against listed jurisdictions also continues. The EU list is updated twice a year, to reflect changes in jurisdictions’ tax policies and cooperation levels. This ensures that the list remains relevant and accurate over time.
Source – EU Commission