Originally published in 2017, the EU’s tax haven list evaluates jurisdictions outside the union on their adherence to critical standards, such as tax transparency, fair taxation, and compliance with global standards designed to combat base erosion and profit shifting.
The EU regularly updates the list twice a year, with the next expected update scheduled for February. Being featured on this list not only tarnishes a jurisdiction’s reputation but also diminishes its appeal as an investment destination. Businesses investing in these listed jurisdictions may risk losing tax benefits or encountering heightened audit risks. Moreover, EU development or investment funding may not be disbursed to projects in countries on the list.
Representatives from the newly added jurisdictions are yet to respond to requests for comment.
In addition to these developments, EU ministers discussed various other tax-related topics in their recent meeting, where they officially supported a law that mandates enhanced information exchange among tax authorities regarding data supplied by crypto-asset service providers. This law, an amendment to the Directive on Administrative Cooperation (DAC8), was previously approved by ministers in May, but it received formal ratification by the council following the legally required opinion issued by the European Parliament last month.
