EU removes Panama and Vietnam from tax haven blacklist
The European Union has removed Panama and Vietnam from its blacklist of non-cooperative tax jurisdictions following improvements in their transparency policies and tax cooperation efforts. Eight countries and territories now remain on the list, which serves as a tool to pressure jurisdictions into meeting international standards for financial oversight.
The European Union has officially removed Panama and Vietnam from its blacklist of tax havens. Panama had been included on the list since 2020, while Vietnam was added earlier this year after failing to meet international standards for the exchange of tax information as assessed by the OECD. Panama pushed for removal, citing negative impacts on foreign investment, and recently enacted legislation to increase financial transparency and address the use of shell companies. Vietnam also responded quickly to its inclusion, demonstrating compliance through a national action plan.
Following these removals, eight jurisdictions remain on the EU blacklist, including American Samoa, Russia, and various overseas territories. Although the blacklist does not legally ban trade with these nations, it serves as a mechanism to encourage tax compliance and transparency. EU member states have the discretion to implement counter-measures, such as restricting tax deductions for payments made to blacklisted regions. The list was established in 2017 following various international financial scandals.
Based on reporting by nu. Translated and condensed by LocalHeadlines.
