The updated EU list of non-cooperative jurisdictions 2022 for tax purposes took effect on the 3rd of March 2022, with its publication in the European Union's Official Journal.

In brief -The effects of being deemed non-cooperative by the EU:

As per the numerous measures imposed by the EU, in December 2017 the EU Member States came to an agreement to apply at least one of the following measures against countries on the EU List:

  • increased risk audits for taxpayers who benefit from listed regimes;
  • reinforced monitoring of transactions;
  • increased risk audits for taxpayers who use tax schemes involving listed regimes

As per the tax areas of countries on the EU list, in December of 2019, the Council embraced counselling on the coordination of national defensive measures. In particular, Member States were in agreement to implement at least one of the following measures:

  • non-deductibility of costs;
  • controlled Foreign Company (CFC) rules;
  • withholding tax measures;
  • limitation of participation exemption on profit distribution.

Member States have pledged that at least one of the above legislative measures was to be put in effect as of January 1st, 2021.

The Code of Conduct Group (COCG) has undertaken a review of defensive measures applied by the Member States and the related findings were published in November 2021

Updates on the updated EU list of non-cooperative jurisdictions 2022

  • None of the jurisdictions were either removed or added to the EU list of non-cooperative jurisdictions 2022 for tax purposes (Annex I – known as the EU "black list"), and ultimately the EU black list keeps on including the below mentioned 9 jurisdictions:

    Fiji, American Samoa, Guam, Panama, Palau, Trinidad and Tobago, Samoa, US Virgin Islands and Vanuatu.
  • Around 10 jurisdictions were included in the EU list of jurisdictions whose responsibility to abide by the EU standards is observed (Annex II – known as the EU "grey list"), and ultimately the EU grey list adds the below mentioned 25 jurisdictions (additions highlighted in bold for ease of reference):

Anguilla, Bahamas, Barbados, Belize, Bermuda, Botswana, British Virgin Islands, Costa Rica, Dominica, Hong Kong, Israel, Jamaica, Jordan, Malaysia, Montserrat, North Macedonia, Qatar, Russian Federation, Seychelles, Thailand, Tunisia, Turkey, Turks and Caicos Islands, Uruguay and Vietnam.

Find more detailed information about the defensive measures Cyprus against EU black listed jurisdictions can be accessed here.

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