Vietnam and Turks and Caicos Added to EU Tax Haven Blacklist
EU finance ministers add Vietnam and Turks and Caicos to non-cooperative tax list while removing Fiji, Samoa, and Trinidad and Tobago
- The European Union has officially added Vietnam and the Turks and Caicos Islands to its blacklist of non-cooperative tax jurisdictions.
- Vietnam was added after being downgraded from the EU's "grey list" for failing to meet international standards on the exchange of tax information upon request.
- In the same update, the EU removed Fiji, Samoa, and Trinidad and Tobago from the list after they were deemed compliant with tax standards.
- Jurisdictions on the blacklist face consequences such as increased financial scrutiny, potential loss of EU funds, and reputational damage that can deter investment.
EU finance ministers add Vietnam and Turks and Caicos to non-cooperative tax list while removing Fiji, Samoa, and Trinidad and Tobago.
European Union finance ministers have updated the bloc’s list of non-cooperative jurisdictions for tax purposes, adding Vietnam and the Turks and Caicos Islands to the "blacklist" of global tax havens.
In a statement released on 17 February, the Council of the European Union confirmed that while two nations were added, three others—Fiji, Samoa, and Trinidad and Tobago—were removed after being deemed compliant with international tax standards.
The revised list now comprises ten jurisdictions: American Samoa, Anguilla, Guam, Palau, Panama, Russia, the Turks and Caicos Islands, the US Virgin Islands, Vanuatu, and Vietnam.
Vietnam’s ‘Grey to Black’ Shift
The inclusion of Vietnam marks a significant setback for the Southeast Asian nation. Having been removed from the EU’s "grey list"—a category for countries committed to reform—in October, Vietnam has now been downgraded directly to the blacklist.
This decision follows findings by the OECD Global Forum, which determined that Vietnam does not currently meet the required standards for the exchange of tax information upon request.
Promoting Global Governance
"The list is part of the EU’s efforts to promote tax good governance worldwide," the Council stated. "It is composed of countries which fail to comply with agreed international tax standards or did not fulfil their commitments within a specific timeframe."
Established in December 2017 and updated twice annually, the list serves as a tool to pressure foreign jurisdictions into aligning with transparency and fair tax competition norms.
The Cost of Non-Compliance
Nations appearing on the blacklist face significant consequences beyond mere diplomatic friction. Consequences include:
Increased Scrutiny: Heightened monitoring of financial transactions involving these jurisdictions.
Funding Risks: Potential loss of access to specific EU developmental and investment funds.
Reputational Damage: A "blacklisted" status often deters foreign direct investment and complicates international banking relationships.
Conversely, the removal of Fiji, Samoa, and Trinidad and Tobago suggests that the EU’s "naming and shaming" mechanism continues to incentivise legislative reform in offshore financial centres.
