UPDATE: - European Union list of non-cooperative jurisdictions for tax purposes


The European Union list of non-cooperative jurisdictions for tax purposes (the “EU Blacklist”) serves as a means to fight against tax evasion and avoidance, and contains countries that have failed to comply with the standards of good governance in their taxation sector.

On the 17th of October 2023, the Council of the European Union has resolved to add Belize, Seychelles and Antigua & Barbuda on the EU Blacklist and has further resolved to remove the British Virgin Islands (BVI), Cost Rica and the Marshall Islands from the list.

Following this latest revision, the EU Blacklist now consists of the following 16 jurisdictions:-

  • American Samoa
  • Antigua and Barbuda
  • Anguilla
  • Bahamas
  • Belize
  • Fiji
  • Guam
  • Palau
  • Panama
  • Russia
  • Samoa
  • Seychelles
  • Trinidad and Tobago
  • Turks and Caicos Islands
  • US Virgin Islands
  • Vanuatu

What are the tax implications of being a blacklisted jurisdiction?

Since in the introduction of the EU Blacklist in December 2017, EU Member States have adopted several measures, which are enforceable against blacklisted jurisdictions. These include the imposition of increased withholding taxes on payments, denial of tax relief for payments and denial of tax exemption of dividends received from a blacklisted jurisdiction, which measures now apply also to the three added countries above mentioned.

The recent revision of the EU Blacklist also has implications on reporting obligations, especially in respect of deductible cross-border transactions that involve recipients that are considered tax residents in blacklisted jurisdictions. For DAC purposes, reporting obligations apply to both transactions that are tax-motivated and those that result in tax benefits.

Should you require more information on the blacklisted jurisdictions and the measures applicable in their regard, you are invited to get in touch with us on info@dingli.com.mt and our team will guide you further.