Tax Advice

ECOFIN Council: Russia on EU blacklist

On Fe­bru­ary, 14 2023, the EU's Eco­no­mic and Fi­nan­cial Af­fairs Coun­cil (ECOFIN), re­pre­sen­ted by EU fi­nance mi­nis­ters, de­ci­ded to add Rus­sia - among others - to the EU list of non-coope­ra­tive ju­ris­dic­tions.

In ad­di­tion to Rus­sia, the Bri­tish Vir­gin Is­lands and Costa Rica will also be newly in­clu­ded, and the Mar­shall Is­lands will be lis­ted again (see press re­lease da­ted Fe­bru­ary, 14 2023).

For ju­ris­dic­tions na­med in the EU black­list, the Ger­man Tax Ha­ven De­fense Reg­lu­la­tion sti­pu­la­tes, among others, stric­ter con­trol­led for­eign cor­po­ra­tion ru­les (CFC-ru­les), an ex­ten­sion of wi­th­hol­ding tax col­lec­tion to ad­di­tio­nal in­come, re­stric­tions on the ap­pli­ca­tion of re­gu­la­ti­ons from dou­ble ta­xa­tion agree­ments and in­crea­sed ob­li­ga­ti­ons to coope­rate. The newly lis­ted coun­tries will be af­fec­ted from 2024 on­wards, pro­vi­ded that the Tax Ha­ven De­fense Re­gu­la­tion is ad­ap­ted to the new EU black­list by the end of the year. In sub­se­quent years, fur­ther tigh­te­ning of di­vi­dend ta­xa­tion and re­stric­tions re­gar­ding busi­ness ex­pense de­duc­tions would be ad­ded.

Note: The EU black­list also has an im­pact on the re­por­ting re­qui­re­ments for cross-bor­der tax ar­ran­ge­ments (DAC6).


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