Curaçao removed from EU tax grey list

Curaçao has been removed the European Union’s grey list of non-cooperative jurisdictions for tax purposes.

Curaçao had previously found itself on Annex II, which the EU defines as a list of jurisdictions that are attempting to “reform legislation to adhere to agreed tax good governance standards”.

Annex I represents the list of totally non-cooperative jurisdictions, and includes Russia, Panama and the US Virgin Islands.

The decision was confirmed this week as the island nation was determined to have fulfilled its commitments to address deficiencies as ruled by the EU.

Those deficiencies related to the “automatic exchange of tax information system”, with Curaçao now being removed from the list.

Costa Rica was also removed from Annex II in the latest update from the trading bloc.

Jurisdictions that will remain on the grey list include Turkey, Vietnam, Brunei and the British Virgin Islands.

The Annex lists were first established in December 2017 and form part of the EU’s efforts to promote tax good governance across the globe.

Criteria for appearing on the lists include “tax transparency, fair taxation and implementation of international standards”.

The Curaçao Gaming Authority said: “Curaçao has been removed from the European Union’s Annex II list, commonly known as the ‘grey list’ for tax jurisdictions.

“This change signifies that Curaçao now fully complies with international tax standards, eliminating the need for further EU oversight.

“Previously, Annex II included countries that had committed to amending their tax policies to meet EU criteria. Curaçao’s successful reforms have led to its removal from this list.”