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I. Introduction
In November 2016, the EU Economic and Financial Affairs Council, represented by EU finance ministers, mandated the Code of Conduct Group (business taxation), a special group established by the Council, to carry out the preparatory work to establish the below-mentioned list. The Code of Conduct Group started with the screening of 92 jurisdictions, selected on the basis of their economic ties with the EU, their institutional stability and the importance of the country’s financial sector. The group’s screening and assessment report was submitted to the Council, and based on the report, the EU’s first ‘country blacklist’ was adopted on 5 December 2017. Since then, the Council releases an update a list twice a year.
The most recent meeting to establish changes to its ‘list of non-cooperative jurisdictions’ for anti-tax avoidance purposes was held on 10 October 2025
- Blacklisted jurisdictions
In the recent meeting, no new jurisdictions were added to the list of countries that were found not to be sufficiently in compliance with the Organization for Economic Cooperation and Development (OECD) standards. At the same time, the Council regrets that the jurisdictions already listed continue to be insufficiently cooperative in the area of taxation and calls for improvements.
The following 11 jurisdictions remain listed
- American Samoa
- Anguilla
- Fiji
- Guam
- Palau
- Panama
- Russia
- Samoa
- Trinidad and Tobago
- US Virgin Islands
- Vanuatu
In addition to the list of non-cooperative tax jurisdictions, a state of play document (Annex II) reflects ongoing EU cooperation and the commitments of these countries to reform their legislation to adhere to agreed tax good governance standards.
Its purpose is to recognize ongoing constructive work in the field of taxation, and to encourage the positive approach taken by cooperative jurisdictions to implement tax good governance principles.
Vietnam fulfilled its commitment regarding implementation of country-by-country reporting standards for multinational companies operating in the country and was removed from the state of play document.
A few countries were also included to Annex II: Greenland, Jordan and Morocco have committed themselves to implementing country reporting, as has Vietnam. Montenegro made commitments to improve its automatic exchange of financial account information and exchange of tax information on request.
The most recent amendment to the actual blacklist was made in October 2024 where Antigua and Barbuda was removed after changing its tax regulation. Now, it remains on Annex II to track the progress it has made towards meeting international standards for tax good governance.
Other noteworthy recent changes include Belize and Seychelles, which were added to the list in 2023 but removed again in the same year after they improved their criticised lack of tax information exchange.
Also recently removed were the Bahamas and Turks and Caicos Islands from the blacklist after the OECD downgraded their economic substance deficiencies from “hard” to “soft” recommendations, recognizing them as compliant. Additionally, Hong Kong and Albania were taken off Annex II after fulfilling their commitments by amending their tax regimes.
II. Measures against blacklisted jurisdictions
Possible ‘defensive measures’ against blacklisted jurisdictions include:
- Denying deduction of costs and payments that otherwise would be deductible when these costs and payments are treated as directed to entities or persons in blacklisted jurisdictions.
- Including in the taxpayer company’s HOME tax base the income of an entity resident or a permanent establishment situated in a blacklisted jurisdiction, in accordance with the Anti-Tax Avoidance Directive rules for controlled foreign companies.
- Applying a withholding tax at a higher rate on payments such as interest, royalties, service fee or remuneration, when these payments are treated as received in blacklisted jurisdictions.
- For those member states with rules that permit excluding or deducting dividends or other profits received from foreign subsidiaries, denying, or limiting these ‘participation exemptions’ if the dividends or other profits are treated as received from a blacklisted jurisdiction.
The next revision of the list is expected in February 2026.
We hope that the information provided in this newsletter was helpful for you.
If you have any further questions, please do not hesitate to contact us.
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