Antigua and Barbuda Removed from EU Blacklist

On October 8, 2024, the European Union (EU) announced that Antigua and Barbuda was removed from its EU blacklist of non-cooperative jurisdictions for tax purposes. The list’s next update will occur in February 2025.

With this removal, the list now consists of 11 jurisdictions, including Russia, which has remained on the list since February 14, 2023. These jurisdictions have either failed to meet the EU’s tax governance standards or have not implemented the necessary reforms. The jurisdictions currently on the list are:

• American Samoa
• Anguilla
• Fiji
• Guam
• Palau
• Panama
• Russia
• Samoa
• Trinidad and Tobago
• US Virgin Islands
• Vanuatu

The EU encourages these countries to strengthen their legal frameworks in order to resolve outstanding tax issues.

Implications for Cyprus Taxpayers

For Cyprus tax residents, payments made or accrued to companies in these jurisdictions will be subject to withholding taxes. Specifically, there will be a 17% tax on dividends, a 17% tax on interest, and a 10% tax on royalties. Moreover, DAC6 reporting obligations may also apply to interest and royalty payments.

Reasons Behind Antigua and Barbuda’s Removal

The EU had added Antigua and Barbuda to the blacklist in October 2023 due to a negative evaluation from the OECD Global Forum regarding information exchange. However, after the country updated its regulations, the Global Forum agreed to conduct a supplementary review. While awaiting the results of this review, Antigua and Barbuda has moved to Annex II, which acknowledges ongoing cooperation.

Updates on Other Jurisdictions

In addition, the EU Council noted progress from Fiji and Palau in meeting compliance standards, which is reflected in their listings. Meanwhile, Armenia and Malaysia managed to address harmful tax regimes, leading to their removal from Annex II. On the other hand, Vietnam has been given additional time to meet its country-by-country reporting commitments, with a reassessment scheduled for February 2025.

Background and Context

The EU established the list of non-cooperative jurisdictions in December 2017 as part of its efforts to promote tax good governance. The list is updated twice a year, based on criteria related to tax transparency, fair taxation, and adherence to international standards aimed at preventing tax base erosion and profit shifting.

The Code of Conduct Group oversees this process and collaborates with organizations such as the OECD Forum on Harmful Tax Practices to ensure global tax governance standards are upheld. The next list update will be in February 2025.

How can we help?

If you require any assistance or have questions regarding the recent updates to the EU list of non-cooperative jurisdictions, please feel free to reach out to us. Our team is here to provide guidance on how these changes may impact your tax obligations and to help you navigate compliance requirements.