The Council of the European Union has issued the European Union list of non-cooperative jurisdictions for tax purposes (blacklist) on 17 October 2023. The countries listed on the blacklist have not engaged in constructive dialogue with the EU or have failed to deliver on their commitments to implement the necessary reforms aimed at complying with the objective good tax governance criteria. These objective criteria include tax transparency, fair taxation, and the implementation of norms to prevent tax base erosion and profit shifting.

The practical significance of the blacklist lies in the fact that if a tax subject has tax residency in a country or territory listed on the blacklist, they are required to report their tax plan to the relevant tax authority based on the DAC6 directive[1]. The DAC6 directive is one of the pillars of the European Union’s fight against tax avoidance, requiring mandatory and automatic information sharing for cross-border tax matters.

Antigua and Barbuda, Belize, and the Seychelles have been added to the current list, however the number of countries on the list remains 16, as the British Virgin Islands, Costa Rica, and the Marshall Islands have been removed from the list due to the fact that they have implemented tax reforms undertaken.

For further information, you can refer to the European Council’s website.

Should you need further assistance on this subject, our tax advisors are at your disposal.

[1] Council Directive (EU) 2018/822 of 25 May 2018 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements