The EU Code of Conduct Group (Business Taxation) released a report concerning the EU list of non-cooperative jurisdictions for tax purposes. In this report, the Code of Conduct Group suggests amendments to the Annexes of the EU Council conclusions of March 12, 2019.
Belize has a reform of its International Business Companies (IBC regime), for which the 4 legislative acts were gazetted on October 12, 2019. After having reviewed the drafts of these legislative acts, the Code of Conduct Group concluded that Belize can be removed from Annex I (blacklist), as it considers the new IBC regime as not harmful. The Code of Conduct Group recommends to have Belize in Annex II (greylist) pending the implementation of the country’s commitment to amend or abolish the harmful features of its foreign source income exemption regime.
In addition, the Code of Conduct Group recommends to remove the Republic of North Macedonia entirely from Annex II. The Republic of North Macedonia has ratified the OECD Multilateral Convention on Mutual Administrative Assistance (MAC). The instrument of ratification was deposited with the Council of Europe on September 30, and the MAC will enter into force for the Republic of North Macedonia on January 1, 2020.
The Code of Conduct Group suggests the ECOFIN Council to adopt the updated Annexes I and II – including the de-listing of the Republic of North Macedonia - in November 2019, and to agree on their publication in the Official Journal.
Earlier this year, Aruba, Barbados, Bermuda, Dominica, Marshall Islands and the UAE were removed from the EU Tax Blacklist by the ECOFIN Council, and updates were made to Annexes I and II of the Council conclusions of 12 March 2019.