On 26 February 2024, the new list of non-cooperative jurisdictions for tax purposes (the "Blacklist") was published in the Official Journal of the European Union. The Blacklist was updated on 20 February 2024 by the EU Council which removed four jurisdictions from the previous list: The Bahamas, Belize, the Seychelles and the Turks and Caicos Islands. The new Blacklist came into force as at the date of its publication in the Official Journal.
The update of the Blacklist is an important step as it directly impacts the scope of application of three different Luxembourg tax measures: 1) the measure denying the corporate income tax deduction of interest and royalty expenses due to entities located in non-cooperative tax jurisdictions, 2) the requirement to disclose transactions with entities located in non-cooperative jurisdictions in tax returns and 3) the mandatory disclosure rules applicable to certain cross-border arrangements.
Hereafter, International & Corporate Tax Partner, Petya Dimitrova, and Chief Knowledge Officer, Marie Bentley, detail all the ins and outs.