IN BRIEF

On 5 October 2021 the ECOFIN Council updated the EU list of third country 'non-cooperative jurisdictions for tax purposes' (commonly referred to as the EU 'blacklist') and also updated the EU list of third country 'cooperative jurisdictions for tax purposes subject to the successful delivery of their commitments' (commonly referred to as the EU 'greylist').

The updated EU 'blacklist' and EU 'greylist' are effective from 12 October 2021, being the date of their publication in the Official Journal of the EU.

IN DETAIL

The latest amendments to the EU 'blacklist' and the EU 'greylist'

As a result of the latest update effective as from 12 October 2021:

  • Anguilla, Dominica and Seychelles have been moved from the EU 'blacklist' to the EU 'greylist';
  • Costa Rica, Hong Kong, Malaysia, North Macedonia, Qatar and Uruguay have been added to the EU 'greylist';
  • Australia, Eswatini and Maldives are no longer listed (i.e. have been removed from the EU 'greylist') due to successful delivery of their commitments.

Background

The ECOFIN Council adopted the initial EU 'blacklist' and EU 'greylist' on 5 December 2017. These have since been updated several times. The EU previously decided that, as from 2020, the lists are updated no more than twice a year. This is the second update taking place in 2021. The next update is expected to be in February 2022.

For more background on the lists and their evolution over time, please refer to our prior Tax Update Newsletters N-17-2017, N-4-2018, N-11-2018, N-19-2018, N-5-2019, N-9-2019, N-11-2019, N-14-2019, N-2- 2020, N-28-2020and N-2-2021.

Updated EU lists effective as from 12 October 2021

For your ease of reference, the latest updated lists are set out below:

The latest updated EU list of the 9 identified jurisdictions included in the EU list of non-cooperative jurisdictions for tax purposes (EU 'blacklist'), as adopted and published on 12 October 2021, grouped per reason of listing:

No commitment to address the EU's concerns Did not deliver on their commitment on time Major transparency

concerns

American Samoa

Fiji

Panama

Guam

Palau

Trinidad and Tobago

US Virgin Islands

Samoa

-
- Vanuatu -


The latest updated EU list of the 15 identified cooperative jurisdictions subject to the successful delivery of their commitments (EU 'greylist'), as adopted and published on 12 October 2021:

Anguilla

Hong Kong

Qatar

Barbados

Jamaica

Seychelles

Botswana

Jordan

Thailand
Costa Rica Malaysia Turkey


THE TAKEAWAY

Possible impacts on jurisdictions on the EU 'blacklist' include facing increased monitoring and audits, special documentation requirements, increased withholding taxes, and other possible defensive tax measures by EU Member States.

In addition, increased DAC6 reporting obligations would apply to certain related party transactions between the EU and the EU 'blacklisted' jurisdictions.

Originally published 13 October 2021

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.