During the ECOFIN meeting held on 8 October 2024, the EU Council approved the updated EU list of non-cooperative jurisdictions for tax purposes (“Blacklist”). The Blacklist is updated twice a year (in February and October) by the EU Council based on criteria relating to tax transparency, fair taxation and measures against base erosion and profit shifting (‘anti-BEPS measures’). By reference to this list, Member States can put in place defensive measures to help protect their tax revenues and fight against tax fraud, evasion and abuse.
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 and 3) the mandatory disclosure rules applicable to certain cross-border arrangements under DAC6.
Hereafter, our Tax Partner, Olivier Remacle, and Chief Knowledge Officer, Marie Bentley, will analyse the updated Blacklist of October 2024 and its implications for Luxembourg.