The Common EU list of third country jurisdictions for tax purposes is a list of countries and territories that the European Union (EU) considers to be non-cooperative in the area of taxation. The list was first established in 2017 and is regularly updated based on ongoing assessments of third-country jurisdictions.
Being on the EU list means that a country or territory is considered to have failed to meet certain criteria related to tax transparency, fair taxation, and implementation of internationally agreed tax standards. The EU list is meant to discourage aggressive tax planning and to promote tax fairness and transparency.
The inclusion of a country or territory on the EU list may have several consequences. For example, EU member states may be required to apply additional scrutiny to transactions involving entities or individuals from listed jurisdictions. They may also be subject to restrictions on access to EU funding, technical assistance, or other support.
If a country is on the EU list, it does not necessarily mean that all financial transactions with that country are prohibited. However, financial institutions may be required to perform additional due diligence checks and face increased regulatory scrutiny when dealing with clients or transactions involving listed jurisdictions.
Countries and territories on the EU list may also face reputational damage, which can impact their ability to attract investment and engage in international trade. As a result, many countries have taken steps to address the issues identified by the EU and have been removed from the list.
In summary, the Common EU list of third country jurisdictions for tax purposes is a tool used by the EU to promote tax transparency and fairness. If a country is on the list, financial institutions may be required to perform additional due diligence checks and face increased regulatory scrutiny when dealing with clients or transactions involving that country.
The list can be found here: Common EU list of third-country jurisdictions for tax purposes
This page was last updated on May 2, 2023.