See our previous article on this subject:

• EU Blacklist for the UAE: what does it mean and what to expect for businesses?

On 10 October 2019, the Council agreed to remove the United Arab Emirates (UAE) and the Marshall Islands from the EU's list of non-cooperative jurisdictions for tax purposes. It also found Albania, Costa Rica, Mauritius, Serbia, and Switzerland to be compliant with all commitments on tax cooperation.

As part of the regular review of the lists, the ministers decided to drop the UAE from the EU blacklist that covers jurisdictions that have failed to cooperate with the EU on tax matters. The EU list contributes to on-going efforts to prevent tax avoidance and promote good governance principles such as tax transparency, fair taxation, or international standards against tax base erosion and profit shifting.

The UAE, the largest financial center that was blacklisted, was removed because in September it adopted new rules on offshore structures, the EU said, giving it a clean-sheet on its tax practices. The Gulf state charges no corporate taxes, making it a possible target for firms seeking to avoid paying tax in the countries where they actually operate.

Jurisdictions that remain blacklisted are Belize, Fiji, Oman, Samoa, Trinidad and Tobago, Vanuatu, and the three US territories of American Samoa, Guam, and the US Virgin Islands.

If you have any questions and want to get a free consultation, please contact us. We will be happy to share our experience with you and protect the investment of your business in Dubai and the UAE.

MARSEL SHADMANOV

Head of Corporate Services of Garant Business Consultancy