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The EU General Affairs Council (acting as the Council of the EU) has approved the recommendations of the EU Code of Conduct Group in relation to the updated list of non-cooperative tax jurisdictions. The Council removed the Bahamas, Belize, Seychelles and Turks and Caicos Islands from the list of non-cooperative jurisdictions for tax purposes. With these updates, the EU list now consists of 12 jurisdictions.

Being listed may lead to increased withholding taxes on payments to and non-deductibility of costs incurred in a listed jurisdiction, CFC issues, or limitations on the participation exemption on shareholder dividends.

Businesses should review the updated lists and consider the potential consequences for entities located in impacted jurisdictions.

Read more in our Tax Policy Alert.