EU Announces Major Tax Blacklist Shake-Up as Panama and Vietnam Are Removed in Brussels

Brussels, 10 October, (Brussels Morning Newspaper) – The European Union has removed Panama and Vietnam from its EU tax blacklist following reforms aimed at improving international tax transparency and cooperation. The decision, approved by EU finance ministers on 9 October, reduces the number of jurisdictions considered non-cooperative for tax purposes from ten to eight, marking a significant change in the bloc’s international tax governance framework.

Both countries have been transferred to a separate monitoring list while international authorities conduct further assessments of their tax information exchange systems.

The decision reflects Brussels’ continuing efforts to encourage governments to comply with internationally recognised taxation standards and address practices that could facilitate tax avoidance.

EU Removes Panama and Vietnam Following Tax Reforms

The Council of the European Union confirmed that Panama and Vietnam had taken significant steps to resolve concerns identified during previous assessments.

Panama had remained on the EU’s list of non-cooperative tax jurisdictions since February 2020.

The Council said Panama had reformed its foreign-source income exemption regime, previously identified as harmful under international taxation standards.

Vietnam was added to the list in February 2026 after an assessment found shortcomings in its arrangements for exchanging tax information upon request.

Following reforms, both countries have been granted new reviews by the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes.

They will remain under monitoring until those assessments are completed.

Eight Jurisdictions Remain on EU Tax Blacklist

Following the latest revision, eight jurisdictions remain classified as non-cooperative.

They are American Samoa, Anguilla, Guam, Palau, Russia, the Turks and Caicos Islands, the US Virgin Islands and Vanuatu.

The European Commission also acknowledged improvements made by Vanuatu but confirmed that unresolved concerns prevent its removal.

Meanwhile, Anguilla continues to face scrutiny over deficiencies in its tax information exchange arrangements.

Belize has been removed from the EU’s separate monitoring list after receiving a favourable international assessment of its tax information exchange framework.

European Commission Highlights International Tax Cooperation

The European Commission welcomed the developments, describing the latest revision as evidence that engagement with international partners can encourage improvements in tax governance.

In its official announcement, the Commission stated that the changes reflected progress on tax transparency and fair taxation while acknowledging continuing concerns in other jurisdictions.

The Council also emphasised that its listing process encourages countries to address shortcomings and fulfil commitments under internationally agreed standards.

However, Panama and Vietnam’s removal from the non-cooperative list does not mean all outstanding assessments have been completed.

Why Brussels Maintains International Tax Monitoring

Introduced in December 2017, the EU’s tax listing framework aims to strengthen international cooperation against tax evasion, avoidance and harmful tax practices.

Countries are assessed against standards covering transparency, fair taxation and measures designed to prevent multinational companies from shifting profits artificially between jurisdictions.

The Council’s Code of Conduct Group on Business Taxation coordinates the process, supported by the European Commission.

The framework distinguishes between jurisdictions considered non-cooperative and those cooperating with the EU while completing outstanding commitments.

What the Decision Means for International Businesses

The revised classification has implications for companies, financial institutions and investors with cross-border operations.

EU member states apply defensive tax measures against jurisdictions appearing on the non-cooperative list, although national implementation can differ.

Removal from that list changes the relevant EU classification but does not automatically eliminate existing tax reporting or compliance obligations.

For Panama and Vietnam, continued monitoring means that further international assessments remain important to their standing within the EU framework.

What Happens Next for EU Tax Governance?

The OECD Global Forum will undertake further reviews of Panama and Vietnam’s tax information exchange arrangements.

The Council will consider relevant assessment outcomes when reviewing the countries’ positions.

The next scheduled revision of the EU’s list is February 2027, when finance ministers are expected to reassess jurisdictions against the bloc’s established criteria.

Until then, Brussels will continue monitoring international tax cooperation and compliance with recognised governance standards.