Russia added to EU list of non-cooperative jurisdictions for tax purposes
Dialogue with Russia on issues of tax legislation "reached a dead end" against the background of military actions in Ukraine (Photo:REUTERS/Yves Herman)
The European Council has decided to add the British Virgin Islands, Costa Rica, the Marshall Islands, and Russia to the EU list of non-cooperative jurisdictions for tax purposes, the agency said in a press release on Feb. 14.
“The Council regrets that these jurisdictions are non-cooperative on tax matters and invites them to improve their legal framework in order to resolve the identified issues,” the report says.
According to the EU Council, Russia was added to the list after the code of conduct group screened Russia’s new legislation adopted in 2022 against the good tax governance criteria of the code and found that Russia had not fulfilled its commitment to address the harmful aspects of a special regime for international holding companies.
In addition, dialogue with Russia on matters related to taxation came to a standstill following the Russian aggression against Ukraine.
The EU list now consists of 16 jurisdictions, including American Samoa, Anguilla, the Bahamas, the British Virgin Islands, Costa Rica, Fiji, Guam, Marshall Islands, Palau, Panama, Russia, Samoa, Trinidad and Tobago, the Turks and Caicos Islands, the U.S. Virgin Islands, and Vanuatu.
Meanwhile, Hong Kong and Malaysia were granted an extension of the deadline to complete the reform of their foreign source income exemption regimes.
Qatar was also granted an extension because it faced constitutional reform constraints to complete its reform on time.
At the same time, Barbados, Jamaica, North Macedonia, and Uruguay fulfilled their commitments and could therefore be removed from the document, the EU Council said.
The next revision of the list is scheduled for October 2023.
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