Today, the Council has removed the Bahamas, Belize, Seychelles, and the Turks and Caicos Islands from the list of non-cooperative countries and territories for tax purposes. With this update, the EU list now consists of the following twelve countries and territories:
- American Samoa
- Anguilla
- Antigua and Barbuda
- Fiji
- Guam
- Palau
- Panama
- Russia
- Samoa
- Trinidad and Tobago
- United States Virgin Islands
- Vanuatu
The Council regrets that these countries and territories continue to lack cooperation for tax purposes and invites them to improve their legal frameworks to address identified issues.
The decision to remove countries and territories from the list is based on either a constructive dialogue on fiscal governance with the EU or a failure to fulfill commitments to implement necessary reforms. The reforms should aim to meet objective criteria of good fiscal governance, particularly regarding tax transparency, fiscal fairness, and compliance with international standards to prevent erosion of the tax base and profit shifting. The list is updated twice a year, typically in February and October, under the auspices of EU Finance Ministers.
In October 2022, the Bahamas and the Turks and Caicos Islands were noted for deficiencies in meeting economic substance requirements by the OECD Harmful Tax Practices Forum (HTPF). In the latest evaluation, recommendations to these territories shifted from “hard” to “soft,” leading the Code of Conduct Group to consider them compliant with the standard for territories with no or only nominal corporate tax.
In October 2023, Belize and Seychelles were added to the EU list of non-cooperative countries for tax purposes following a negative assessment by the OECD Global Forum on the exchange of information on request. Due to changes in regulations, a supplementary review has been granted, pending in the near future. Meanwhile, Belize and Seychelles are included in the corresponding section of Annex II.
In addition to the list, the Council has approved the usual document on the current situation (Annex II), reflecting ongoing cooperation between the EU and its international partners and the commitment of those countries to reform their legislation in line with agreed-upon standards for good fiscal governance. The aim is to acknowledge constructive efforts in the tax field and encourage a positive approach adopted by cooperative countries and territories to comply with principles of good fiscal governance.
Two countries and territories, Albania and Hong Kong, fulfilled their commitments by amending harmful tax regimes and will be removed from the document on the current situation. Aruba and Israel also fulfilled all outstanding commitments related to the automatic exchange of information on financial accounts under the Common Reporting Standard.
The Global Forum gave positive ratings to Botswana and Dominica regarding the exchange of information on request, leading to their removal from the corresponding section.
Context: The EU list of non-cooperative countries and territories for tax purposes was established in December 2017. It is part of the EU’s external tax strategy, aiming to contribute to ongoing efforts to promote good fiscal governance globally. Jurisdictions are assessed based on a set of criteria determined by the Council, covering tax transparency, fairness, and the application of international standards to prevent the erosion of the tax base and profit shifting.
The President of the Code of Conduct Group maintains political and procedural dialogues with relevant international organizations and countries and territories as needed.
The list is a dynamic document updated by the Council twice a year since 2020. The next review is scheduled for October 2024. The list is included in Annex I of the Council Conclusions on the EU list of non-cooperative countries and territories for tax purposes. The Conclusions also include a document on the current situation (Annex II), indicating cooperative countries and territories that have introduced new improvements in their tax policies or cooperation in this area.
Council decisions are prepared by the Code of Conduct Group, which also oversees fiscal measures in EU Member States. The Code of Conduct Group closely cooperates with international organizations such as the OECD Harmful Tax Practices Forum to promote good fiscal governance worldwide.
