Tax

On 8 October 2024, the EU published an update to its so-called “Blacklist” of jurisdictions that are not cooperative for tax purposes and “Grey List” of cooperative jurisdictions that have not yet fully met their commitments to improve their tax good governance. The Blacklist and Grey List were last revised in February 2024 (as noted on the Weil Tax Blog).

In summary:

1. Antigua and Barbuda has been removed from the Blacklist, but has been added to the Grey List; and
2. Armenia and Malaysia have been removed from the Grey List.

The Blacklist now comprises American Samoa, Anguilla, Fiji, Guam, Palau, Panama, the Russian Federation, Samoa, Trinidad and Tobago, the US Virgin Islands and Vanuatu.

The Grey List now comprises Antigua and Barbuda, Belize, the British Virgin Islands, Costa Rica, Curaçao, Eswatini, Seychelles, Turkey and Vietnam.

The updated Blacklist and Grey List can also be found here.

Reasons for the changes

Antigua and Barbuda has been removed from the Blacklist “after being granted a supplementary review by the Global Forum on Tax Transparency and Exchange of Information with regard to exchange of information on request.” It will remain on the Grey List pending the outcome of the review.

Armenia and Malaysia have been removed from the Grey List following fulfilment of their commitments to address harmful tax regimes.

Key action for private fund sponsors

As we have noted in connection with previous updates to the EU lists, contractual undertakings relating to the Blacklist and Grey List may have been included in side letters and private fund sponsors should monitor such provisions accordingly. However, the impact of this latest update should be limited as (other than the movement of Antigua and Barbuda) no new jurisdictions have been added to the Blacklist or Grey List.

The next update to the Blacklist and Grey List is due in February 2025.