Insights

EU List of Non-Cooperative Jurisdictions for Tax Purposes Updated

Olivier Remacle 18 Oct 2024

An analysis by ATOZ, Taxand Luxembourg

At a recent Economic and Financial Affairs Council (ECOFIN) meeting, the EU Council approved an updated version of the EU’s blacklist of non-cooperative tax jurisdictions. This list, revised twice a year, is based on criteria including tax transparency, fair taxation, and measures to combat base erosion and profit shifting. It allows EU Member States to implement defensive measures to protect tax revenues and combat tax fraud, evasion, and abuse.

Olivier Remacle and Marie Bentley from our Luxembourg member firm, ATOZ, have provided a more detailed analysis of the updated blacklist and its impact here, particularly regarding three key tax measures:

1. Denial of corporate income tax deductions for interest and royalty payments to entities in non-cooperative jurisdictions.
2. Mandatory disclosure of transactions with such entities.
3. Reporting requirements for certain cross-border arrangements under EU cross-border tax directive DAC6.

Article tags

Corporation Tax | EU | Tax