On 2 June 2026, the EU Council updated its list of non-cooperative tax jurisdictions, adding the Turks and Caicos Islands and Vietnam while recommending the delisting of Fiji, Samoa, and Trinidad and Tobago following remedial actions. The update aims to combat tax evasion and avoidance by screening jurisdictions against criteria on tax transparency, fair taxation, and implementation of anti-BEPS measures.
The Council decided to list the Turks and Caicos Islands and Vietnam due to deficiencies in tax transparency and fair taxation standards. Conversely, Fiji, Samoa, and Trinidad and Tobago are recommended for delisting after addressing previous concerns through legislative or administrative reforms. The list, formally known as the EU list of non-cooperative jurisdictions for tax purposes, is reviewed periodically to encourage global tax good governance.
Policy objectives and trade-offs
The update reflects the EU's ongoing effort to promote tax good governance globally, balancing the need to deter harmful tax practices with diplomatic considerations. By naming and shaming non-compliant jurisdictions, the EU pressures them to align with international standards, but this can strain bilateral relations. The criteria focus on tax transparency, fair taxation, and anti-BEPS measures, prioritising consumer protection and fair competition over short-term business interests.
Impact on stakeholders
- EU member states: Benefit from reduced tax evasion and increased revenue, but face administrative costs in monitoring compliance.
- Listed jurisdictions (Turks and Caicos Islands, Vietnam): Face reputational damage and potential economic sanctions, such as withholding taxes or stricter reporting requirements for EU transactions.
- EU businesses: May face higher compliance costs when operating in listed jurisdictions, but gain a level playing field as tax avoidance opportunities diminish.
- EU taxpayers: Benefit from a fairer tax system and potentially lower tax burdens as evasion decreases.
Next steps
The Council's decision will be formally adopted in the coming weeks. The European Parliament and the European Commission will continue to monitor implementation, and the list will be updated again in the next review cycle. Jurisdictions that have been delisted must maintain their reforms to avoid re-listing.