Thursday 26 November, 2020

EU announces final list of non-cooperative jurisdictions

Press release from the EU Council

Press release from the EU Council

The Council today adopted revised conclusions on the EU list of non-cooperative jurisdictions for tax purposes.

In addition to the 8 jurisdictions that were already listed, the EU also decided to include the following jurisdictions in its list of non- cooperative tax jurisdictions:

  • Cayman Islands;
  • Palau;
  • Panama;
  • Seychelles

These jurisdictions did not implement the tax reforms to which they had committed by the agreed deadline.

Annex II of the conclusions, which covers jurisdictions with pending commitments, reflects the deadline extensions granted to 12 jurisdictions to enable them to pass the necessary reforms to deliver on their commitments. Most of the deadline extensions concern developing countries without a financial centre who have already made meaningful progress in the delivery of their commitments.

16 jurisdictions (Antigua and Barbuda, Armenia, Bahamas, Barbados, Belize, Bermuda, British Virgin Islands, Cabo Verde, Cook Islands, Curaçao, Marshall Islands, Montenegro, Nauru, Niue, Saint Kitts and Nevis, Vietnam) managed to implement all the necessary reforms to comply with EU tax good governance principles ahead of the agreed deadline and are therefore removed from Annex II.

'The work on the list of non-cooperative tax jurisdictions is based on a thorough process of assessment, monitoring and dialogue with about 70 third country jurisdictions. Since we started this exercise, 49 countries have implemented the necessary tax reforms to comply with the EU's criteria. This is an undeniable success. But it is also work in progress and a dynamic process where our methodology and criteria are constantly reviewed."

Zdravko Marić, Croatian Deputy Prime Minister and Minister of finance

The list of non-cooperative tax jurisdictions, which is part of the EU's external strategy for taxation as defined by the Council, is intended to contribute to ongoing efforts to promote tax good governance worldwide.

It was first established in December 2017 and is based on a continuous and dynamic process of:

  • establishing criteria in line with international tax standards;
  • screening countries against these criteria;
  • engaging with countries which do not comply;
  • listing and de-listing countries as they commit or take action to comply;
  • monitoring developments to ensure jurisdictions do not backtrack on previous reforms.

The list includes jurisdictions that have either not engaged in a constructive dialogue with the EU on tax governance or failed to deliver on their commitments to implement reforms to comply with the EU's criteria on time.

Jurisdictions that do not yet comply with all international tax standards but committed to reform are considered cooperative and included in a state of play document (Annex II). The Council's code of conduct group on business taxation monitors that jurisdictions enact the necessary reforms by the agreed deadlines. Once a jurisdiction meets all its commitments, it is removed from Annex II.

Council of the EU

Taxation: Council revises its EU list of non-cooperative jurisdictions

The Council today adopted revised conclusions on the EU list of non-cooperative jurisdictions for tax purposes.

Most commitments taken by third country jurisdictions were with a deadline of end 2019, whilst their enactment in national law was

carefully monitored at technical level by the Code of Conduct Group on business taxation until the beginning of this year. The Council adopted the revised EU list of non-cooperative jurisdictions resulting from this exercise and endorsed a revised state of play with respect to pending commitments.

The Council will continue to regularly review and update the list in the coming years, taking into consideration the evolving deadlines for jurisdictions to deliver on their commitments and the evolution of the listing criteria that the EU uses to establish the list.

In parallel, as regards ‘defensive’ measures with regard to the listed jurisdictions, the Council produced a guidance on further coordination of national defensive measures in the tax area towards non-cooperative jurisdictions in December 2019. It invited all member states to apply legislative defensive measure in taxation vis-à-vis the listed jurisdictions as of 1 January 2021, with the aim of encouraging those jurisdictions’ compliance with the Code of Conduct screening criteria on fair taxation and transparency.

Press office - General Secretariat of the Council

Rue de la Loi 175 - B-1048 BRUSSELS - Tel.: +32 (0)2 281 6319 press@consilium.europa.eu - www.consilium.europa.eu/press

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