Taxation: Council updates the EU list of non-cooperative jurisdictions for tax purposes 11:00 Today, the Council added two countries - Turks and Caicos Islands and Viet Nam –[...]

Today, the Council added two countries - Turks and Caicos Islands and Viet Nam - to the EU list of non-cooperative jurisdictions for tax purposes. At the same time, the Council removed three countries - Fiji, Samoa and Trinidad and Tobago - from the list as they now comply with all agreed international standards.

The list is part of the EU's efforts to promote tax good governance worldwide. It is composed of countries which fail to comply with agreed international tax standards or did not fulfil their commitments on tax good governance within a specific timeframe.

Following today's update, the list consists of 10 jurisdictions:

• American Samoa
• Anguilla
• Guam
• Palau
• Panama
• Russia
• Turks and Caicos Islands
• US Virgin Islands
• Vanuatu
• Viet Nam

This update features both positive and negative developments, reflecting the dynamic character of the process which involves the constant monitoring of the tax practices in other jurisdictions.

The code of conduct group (business taxation) prepares the updates and engages with all jurisdictions involved to help them improve their legal framework to resolve identified issues. The code of conduct group is composed of high-level representatives of the member states and the European Commission and acts to promote fair tax competition within the EU and beyond.

Updates to the EU list (Annex I)

The Turks and Caicos Islands were included in Annex I of the EU list of non-cooperative jurisdictions for tax purposes following concerns raised by the OECD forum on harmful tax practices regarding the enforcement of economic substance requirements in the jurisdiction.

Viet Nam was included in the EU list after the OECD Global Forum's review revealed that the country did not meet the necessary standards for the exchange of tax information on request.

In addition, the entries in Annex I for American Samoa, Guam, and the US Virgin Islands have been updated to reflect ongoing efforts to address compliance with certain tax cooperation standards. However, this progress was not considered enough to warrant their complete removal from the list.

Updates to the 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 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.

Antigua and Barbuda and Seychelles have both received a positive rating from the Global Forum regarding their systems for exchanging tax information on request. As a result, both jurisdictions have fulfilled their commitments and will be removed from the state of play document.

Brunei has been granted a six-month extension to reform its foreign-source income exemption regime. The additional time will allow Brunei to implement the necessary changes to be delisted.

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 based on 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 Council updates the list twice a year. The next revision of the list is scheduled for October 2026.

The chair of the code of conduct group conducts political and procedural dialogues with relevant international organisations and jurisdictions, where necessary.

The Council's decisions regarding the list 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 cooperates closely with international bodies such as the OECD Forum on Harmful Tax Practices (FHTP) to promote tax good governance worldwide.

• Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes
• EU list of non-cooperative jurisdictions (background information)
• Code of Conduct Group (Business Taxation)