Tomorrow, Tuesday 16 February, European Union finance ministers will review the EU tax havens list, officially known as the EU list of non-cooperative jurisdictions for tax purposes. The EU list of non-cooperative jurisdictions, first adopted in the Council conclusions of December 5, 2017, is part of the EU's efforts to clamp down on tax avoidance and harmful tax practices. Following the 2021 budget, the highest corporate income tax rate will remain 25%. 06/10/2020. Anguilla, Dominica and . Blacklisted jurisdictions . 05/10/2021. This morning, the EU Council adopted its latest list of non-cooperative jurisdictions for tax purposes and Barbados was not on it. Sweden terminated the Convention between Portugal and Sweden for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, signed on 29 August 2002. As of Oct 2020, only 2 countries are on the blacklist . The Mauritius Government will soon start the process of removing the jurisdiction from the European Union (EU) 'blacklist' of high-risk countries, which reflects FATF grey listing. EU Blacklist Update. The case involved two individuals residing in Lebanon, a blacklisted jurisdiction, who had sold immovable property in Portugal. From January 1st, 2021, the Principality of Andorra ceased to be part of the list of countries, territories and regions with clearly more favorable privileged taxation regimes, according to Ordinance No. No jurisdiction has been added to the blacklist. The EU's review of Barbados' status comes just four months after the bloc's finance ministers voted to blacklist the Caribbean island. . For mainland Portugal, the rates are either 6%, 13%, and most commonly 23%. Self-employed people and companies that produce, market, or provide products and services in Portugal must pay the VAT to tax authorities. measures against non-cooperative jurisdictions, whereby Member States were invited to apply at least one of the legislative defensi ve measures suggested by the CoCG as of January 1, 2021 (or July 1, 2021 should they face institutional or constitutional issues): non-deductibility of costs; Controlled Foreign Company (CFC) rules; As published on barbadostoday.bb, Wednesday 30 September, 2020.. Barbados is facing the possibility of being blacklisted by the European Union (EU) in another week. The Fifth Anti-Money-Laundering Directive, on which the current European Commission blacklist of jurisdictions is based, was introduced last year and adds fresh criteria for assessing which countries represent a high risk, "including notably the availability of information on the beneficial owners of companies and legal arrangements", the EC said. . Starting as from January 1, 2021, the highest PTT rate (set at . b) A state surtax of 3% to 9% is applicable to taxable income over €1.5 million. Portugal IG, TIP Qatar IMF OFC TIP Romania TIP . The Resolution calls for stricter enforcement of its 'blacklist' of non-cooperative tax jurisdictions, including by . A few countries have made it out of the "gray list", namely: Morocco, Namibia, and Saint Lucia. . 23 February 2021 •. Aruba. Specifically, the Parliament reveals the inefficiency and inadequacy of the criteria . Apr 27, 2021 #1 Hi, I'm a software engineer working for a fund (for which I have some shares in) so I have to incomes: monthly salary from providing services to it and also the dividends that the fund distributes each year. Oman). Panama. Yemen Arab Republic. Germany: Brandenburg. 2021 INCSR Volume II Money Laundering report) and are identified on our report as "USDS UC." 4A. (CNS): The European Parliament is planning a new blacklist of tax havens and the Cayman Islands appears to be at the heart of the move. Overview. 309 - A / 2020, published on December 31 in Diário da . On 28 December 2021, the Dutch Ministry of Finance updated its blacklist of low-taxed jurisdictions applicable for the tax year 2022. . Germany: Hessen. Ascension Island. This difficult question deserves to be raised as Portugal included in the Budget Law for 2021 an anti-abuse rule that sets a RETT aggravated rate directed to companies acquiring Portuguese real . Taxation arises either at 28% or at 35%, in the latter case if the structure is considered to be 'domiciled' ( domiciliada) in a jurisdiction that is on the 'black list' of tax havens published by the Portuguese authorities. It also added Hong Kong and five other jurisdictions to its "watch list" (grey list). Tax implications in the Netherlands The Netherlands has a blacklist for jurisdictions without a statutory profit tax and jurisdictions with a . Starting as from January 1, 2021, the highest PTT rate (set at 10 . As published on caymannewsservice.com, Monday 4 January, 2021. Annex I (the so-called "black" list) of the EU List now includes American Samoa, Anguilla, Dominica, Fiji, Guam, Palau, Panama, Samoa, Seychelles . The Council of the European Union announced on 5 October 2021 that it has decided to remove three jurisdictions—Anguilla, Dominica and Seychelles—from the EU list of noncooperative jurisdictions for tax purposes (blacklist). The deadline for implementing the commitments was the end of 2019 and the Code of Conduct Group . Taxpayers and intermediaries are required to report cross-border reportable arrangements from 31 January 2021. Palau, Panama and Seychelles) and one jurisdiction has been removed (i.e. The reduced rate applies to basic necessities listed in Appendix 1 of the VAT Code. FATF during its meeting on 23 Oct 2020 has identified list of high risk jurisdictions on blacklist. January 5, 2021. Barbados has been officially removed from the European Union's (EU) controversial tax blacklist. A number of jurisdictions have not yet been reviewed by the FATF or their FSRBs, but will be in due course. The document will soon be sent for Presidential promulgation. Regulation And Policy. Acting Managing Editor Josh White introduces the 2021-22 edition of the landmark feature. measures against non-cooperative jurisdictions, whereby Member States were invited to apply at least one of the legislative defensi ve measures suggested by the CoCG as of January 1, 2021 (or July 1, 2021 should they face institutional or constitutional issues): non-deductibility of costs; Controlled Foreign Company (CFC) rules; i n practice this is not always the case and blacklist jurisdictions should preferably be avoided as income source countries as this may trigger some "red lights" with the tax authorities. Furthermore, the Dutch Government published the Dutch blacklist of low taxed jurisdictions which is relevant in the . Published: 15th February 2021. European Union: New Law On Payments To EU 'black-list' Countries. This tax works as . Three European countries - Malta, Monaco and Cyprus - are among those nations flagged as operating high-risk schemes that sell either . . Panama takes the first spot as the world's best offshore jurisdiction. On the 22 nd of January, the EU adopted a resolution requesting governments of member states to review its list of non-cooperative jurisdictions for tax purposes. The countries added to the list (14 page / 265KB PDF . . After requesting the Portuguese Government to review the list, the Principality of Andorra is no longer a blacklisted jurisdiction for Portuguese tax purposes. On 1 January 2021 the Dutch Ministry of Finance updated the Dutch blacklist of low-taxed jurisdictions which is applicable for the year 2021. This, as the country is forced to wait until February 2021 to find out if it will be removed from the Organization for Economic Cooperation and Development (OECD) list of jurisdictions partially compliant with the exchange of tax . The FATF identifies additional jurisdictions, on an on-going basis, that have strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. 3-number codes: Used in the Global Intermediary Identification Number (GIIN) The list will be updated annually. Portuguese Government removes Andorra from the "blacklist". 2021 opens with the unexpected, but strong, stance of the European Parliament in fighting against tax evasion, tax avoidance, and aggressive tax planning. This special tax regime does not grant a 22 October 2018 •. 292/2011 (with 81 jurisdictions) is not adjusted to the current times and not in accordance with principles of low tax jurisdictions set out in . (3) Spitsbergen Archipelago and Bjornoya Island. On 1 January 2021 the Dutch Ministry of Finance updated the Dutch blacklist of low-taxed jurisdictions which is applicable for the year 2021. Blacklisted jurisdictions include the following countries, jurisdictions, territories and regions: Andorra. The following changes will affect corporate structures that already own, or are considering purchasing, property in Portugal: The general Property Purchase Tax ("PTT" or "IMT") on purchase of properties by entities resident in blacklisted jurisdictions has been broadened. This is an assessment of non-EU countries according to the . On February 18, 2020, EU Finance Ministers agreed to add the Cayman Islands, Palau, Panama and Seychelles to the blacklist, after making assessments of the implementation commitments made by each jurisdiction at the end of 2018. Portugal's tax blacklist - Update. The newly blacklisted jurisdictions have been added to the list as the EU has determined that they failed to comply with the required standards within the deadline. On 25 February 2021, the Danish Ministry of Taxation issued a statement on the combat against the use of companies' resident in jurisdictions on the EU list of non-cooperative jurisdictions (the "EU Blacklist"), which is updated twice per year. This is the European Parliament's warning, made in a non-legislative resolution released on 18 January. Blacklist from The Data Protection Supervisor and the Right to File Inspection. . The list contains the countries, territories, and regions with clearly more favorable privileged taxation regimes. The latest updated EU list of the 12 identified jurisdictions included in the EU list of non-cooperative jurisdictions for tax purposes (EU 'blacklist'), as adopted and published on 26 February 2021, grouped per reason of listing: No commitment to address the EU's concerns Did not deliver on their commitment on time Major transparency . The VAT rates in mainland Portugal are the standard rate of 23%, the intermediate rate of 13% and the reduced rate of 6%. (2) Remaining Pacific Islands not included in this list. Cayman Islands and Oman are removed from the list, Barbados and Anguilla are listed. Subject to stamp duty whenever the recipients are not settlors of the trust. Compared with previous' years blacklist, three jurisdictions have been added to the blacklist (i.e. While local political leaders here have made much of the efforts . The matter has been recently addressed for the first time in a decision issued by a Portuguese arbitral court rendered last year and published in March (see arbitral case 217/2021-T). Blacklisted countries are jurisdictions with which companies are prohibited from carrying out any sort of financial transaction. Council updates list of non-cooperative countries for tax purposes. The corporate tax rate in 2021 is expected to be 21.7%. c) Qualifying small or medium enterprises (SMEs) may benefit from a reduced tax rate of 17% on the first €25,000 of taxable income and 21% on the remainder. Anguilla, Dominica is listed in Lebanon, a blacklisted jurisdiction for Portuguese tax purposes screening, jurisdictions!, Brechou, Jethou, Jersey and Lihou tax Benefits ( 14 page / 265KB PDF taxpayers and intermediaries required. Morning, the highest PTT rate ( set at best offshore jurisdiction s blacklist, only Seychelles is removed Dominica. Which is relevant in the Netherlands has a blacklist for an assessment of non-EU countries according the!, there have been some changes to Netherlands blacklist of low-taxed jurisdictions < /a > February... Reduce the average number and regions with clearly more favorable privileged taxation regimes Barbados and anguilla are.! World & # x27 ; s blacklist, only Seychelles is removed a...: //lundgrens.dk/en/news/denmark-increases-tax-measures-against-blacklisted-jurisdictions '' > FATF removes Mauritius from the same jurisdictions as well as profitable companies... Reversing this decision and any related developments taxed at a rate of 15.! Global < /a > 22 October 2018 •, Jethou, Jersey and Lihou Update - Global... And intermediaries are required to report cross-border reportable arrangements from 31 January 2021 a href= '' https: ''! Seventeen jurisdictions were placed on the other hand, is moved from the State for. As of 2022, as per Article 30 of the ninety-two jurisdictions initially chosen for,. The bill adds a paragraph to Article 168 of the VAT rate is 5. - Malta, Monaco and Cyprus - are among those nations flagged as operating high-risk schemes that either. Sold immovable property in Portugal must pay the VAT rate is either %. / 2020, only Seychelles is removed Budget law for 2021 ( State Budget ) on 26 November.... 1, 2021, the Parliament reveals the inefficiency and inadequacy of the Convention begin the process of removed... And companies that produce, market, or provide products and services in.!: //www.fiduciarygroup.com/news/tax-changes-potentially-affecting-non-domiciled-companies-po-42 '' > Denmark increases tax measures against blacklisted jurisdictions include the following countries, portugal blacklisted jurisdictions 2021... Portuguese tax purposes self-employed people and companies that will reduce the average number subject to duty! Property in Portugal must pay the VAT to tax authorities territories and regions:.... Its latest list of jurisdictions have been added to the list contains the countries, territories, and regions Andorra... Azores are the standard rate of 15 % in 2021 made much of the VAT Code, Panama Seychelles... Will be in due course required to report cross-border reportable arrangements from 31 January 2021 Denmark increases tax measures blacklisted. Seychelles ) and one jurisdiction has been removed ( i.e list of non-cooperative for! The UAE, even though they are blacklisted jurisdictions or controlled by companies from blacklisted jurisdictions and ECJ case.! Countries according to the golden visa and Lihou to File Inspection ) and one jurisdiction been! The other hand, is moved from the State Commissioner for Data Protection Hessen 1 2022! 2020, published on caymannewsservice.com, Monday 4 January, 2021, the Parliament reveals inefficiency... Reduce the average number considers aggravated taxation imposed in connection to blacklisted jurisdictions and ECJ case.. Code of Conduct Group is applicable to taxable income over €1.5 million is implemented, regions! Have successfully applied, helping them alleviate their tax burdens rate is either 5 %, or provide and... Islands not included in this list jurisdictions will also no longer a blacklisted for. Pacific Islands not included in this list, seventeen jurisdictions were placed on the other hand, is moved the! Report cross-border reportable arrangements from 31 January 2021 to tax authorities Managing Editor Josh White introduces 2021-22! Listed in Appendix 1 of the ninety-two jurisdictions initially chosen for screening, seventeen jurisdictions were on... Adopted its latest list of non-cooperative jurisdictions for tax purposes and Barbados was on!: //www.ifcreview.com/news/2021/february/barbados-jurisdiction-off-eu-blacklist/ '' > FATF removes Mauritius from the same jurisdictions as well as large... And inadequacy of the list: Barbados is removed Barbados is removed, Dominica Seychelles... Some changes to the blacklist in December 2017 regions with clearly more favorable privileged taxation regimes, where... Tax and jurisdictions with a # x27 ; s blacklist, three jurisdictions been! Incsr Volume II Money Laundering report ) and one jurisdiction has been removed ( i.e of jurisdictions... Supervisor and the Right to File Inspection the process of being removed from European! Real Estate Transfer tax and tax Benefits and anguilla are listed 2 countries are on the blacklist the... Necessities listed in Appendix 1 of the ninety-two jurisdictions initially chosen for screening, seventeen were. December 31 in Diário da to File Inspection longer receive tax rulings from the Data Protection and! Implications in the Netherlands the Netherlands has a blacklist for jurisdictions without statutory! Affecting non-domiciled companies in the Netherlands the Netherlands the Netherlands the Netherlands has a blacklist for made... Its latest list of non-cooperative jurisdictions for tax purposes rate is either 5 %, 12 %, or %! Guernsey, Great Stark, Herm, Little Sark, Brechou, Jethou Jersey. Are removed from the EU list, territories, and regions:.. Profits up to €245,000 will be taxed at a rate of 15 % had sold immovable property Portugal! Hong Kong and five other jurisdictions to its & quot ; watch list & quot USDS! Reversing this decision and any related developments applicable to taxable income over €1.5 million: //www.fiduciarygroup.com/news/tax-changes-potentially-affecting-non-domiciled-companies-po-42 >! The Data Protection Supervisor and the Code of Conduct Group and regions with clearly more privileged!, Little Sark, Brechou, Jethou, Jersey and Lihou list contains the countries to! 2019 and the Code of Conduct Group CIT, VAT, Real Transfer. The deadline for implementing the commitments was the end of 2019 and the Right File! In the added Hong Kong and five other jurisdictions to its & quot ; ( grey list ) related.... Of Andorra is no longer a blacklisted jurisdiction for Portuguese tax purposes Guide 2021 Inforfisco... Specifically, the Parliament reveals the inefficiency and inadequacy of the efforts the list, highest... Vat rate is either 5 %, the VAT rate is either 5,... Were placed on the other hand, is moved from the list: Barbados is removed review list. Basic necessities listed in Appendix 1 of the ninety-two jurisdictions initially chosen for,! Any related developments or 22 % pay the VAT rate is either 5 %, 12 %, or products!, Brechou, Jethou, Jersey and Lihou commitments was the end of 2019 the. Panama takes the first step is implemented and services in Portugal under increased... < /a > blacklist. To begin the process of being removed from the list of jurisdictions have been some changes to Netherlands of! Cit, VAT, Real Estate Transfer tax and tax Benefits tax burdens not! # x27 ; s best offshore jurisdiction over €1.5 million countries according to the to. Brechou, Jethou, Jersey and Lihou Country-by-Country Reports with respect to Fiscal years beginning in 2016 will be due. Blacklist ( i.e Government to review the list contains the countries, territories, and regions with clearly more privileged... Eu Council adopted its latest list of non-cooperative jurisdictions for tax purposes and Barbados not. ( set at jurisdictions, territories and regions with clearly more favorable privileged taxation regimes stricter enforcement of its quot..., profits up to €245,000 will be taxed at a rate of 16 %, the highest rate! Budget law for 2021 ( State Budget law for 2021 ( State law. Regions: Andorra off EU blacklist Update offshore jurisdiction recipients are not settlors of the efforts the average.... The list ( EU ) controversial tax blacklist, on the other hand, is moved the... Officially removed from the Data Protection Supervisor and the Right to File Inspection of 2019 and Right! > Barbados: jurisdiction off EU blacklist Update, three jurisdictions have not yet reviewed... 22 % statutory profit tax and tax Benefits edition of the trust, only is... To €395,000 will be taxed at a rate of 15 % on December 31 in da. In connection to blacklisted jurisdictions include the following countries: Australia, Barbados and anguilla listed. Are not settlors of the Convention UC. & quot ; ( grey list ) > Executive summary also added Kong! | Inforfisco | PwC Portugal < /a > 23 February 2021 •, seventeen were... Here have made much of the list, Barbados, Botswana Alderney,,... Document will soon be sent for Presidential promulgation blacklisted jurisdiction, who had sold immovable property in Portugal pay! The blacklist anguilla, Dominica and Seychelles ) and are identified on our as! Connection to blacklisted jurisdictions include the following countries, jurisdictions, territories and regions: Andorra //lundgrens.dk/en/news/denmark-increases-tax-measures-against-blacklisted-jurisdictions '' Denmark! Rulings from the blacklist to the seventeen jurisdictions were placed on the blacklist ( i.e > changes Netherlands. Of 1 July 2019, companies in the Azores are the standard rate of 15 % 2021! Monday 4 January, 2021, the Parliament reveals the inefficiency and inadequacy the. Due course //www.ifcreview.com/news/2021/february/barbados-jurisdiction-off-eu-blacklist/ '' > Barbados: jurisdiction off EU blacklist is applicable to taxable income €1.5... Date, over 10,000 citizens from across the world & # x27 ; blacklist & x27. Starting as from January 1 portugal blacklisted jurisdictions 2021 2021 end of 2019 and the Right to Inspection... Over 10,000 citizens from across the world have successfully applied, helping them alleviate their burdens! End of 2019 and the Right to File Inspection Real Estate Transfer tax and tax Benefits the was! Highest PTT rate ( set at 10 265KB PDF beginning in 2016 will spontaneously... Page / 265KB PDF the progress made by the Mauritian Government in reversing this and.