FATF during its meeting on 23 Oct 2020 has identified list of high risk jurisdictions on blacklist. measures against non-cooperative jurisdictions, whereby Member States were invited to apply at least one of the legislative defensi ve measures suggested by the CoCG as of January 1, 2021 (or July 1, 2021 should they face institutional or constitutional issues): non-deductibility of costs; Controlled Foreign Company (CFC) rules; Although the final text of the State Budget is expected to be released on 16 December 2020, based on the public and official information under the . The Council of the European Union announced on 5 October 2021 that it has decided to remove three jurisdictions—Anguilla, Dominica and Seychelles—from the EU list of noncooperative jurisdictions for tax purposes (blacklist). (CNS): The European Parliament is planning a new blacklist of tax havens and the Cayman Islands appears to be at the heart of the move. Companies from blacklisted jurisdictions or controlled by companies from the same jurisdictions as well as profitable large companies that will reduce the average number . The OECD has put 21 jurisdictions offering 'golden passport or visa schemes' on a blacklist stating that those specific schemes threaten international efforts to combat tax evasion. The Portugal NHR tax regime (non-habitual resident) is a hugely successful scheme offering lucrative tax breaks for foreign residents. In October 2020, the FATF decided to . Blacklist from The Data Protection Supervisor and the Right to File Inspection. The VAT rates in mainland Portugal are the standard rate of 23%, the intermediate rate of 13% and the reduced rate of 6%. The corporate tax rate in 2021 is expected to be 21.7%. Netherlands Antilles. The countries on the list have failed to meet EU requirements on tax transparency, and have not implemented commitments made to the EU by an agreed deadline. Taxation arises either at 28% or at 35%, in the latter case if the structure is considered to be 'domiciled' ( domiciliada) in a jurisdiction that is on the 'black list' of tax havens published by the Portuguese authorities. We often find that clients assume the EU blacklist is the same as the Portugal blacklist, which isn't the case. This blog post summarizes the essential points regarding PIT, CIT, VAT, Real Estate Transfer Tax and Tax Benefits. On 28 December 2021, the Dutch Ministry of Finance updated its blacklist of low-taxed jurisdictions applicable for the tax year 2022. As of January 2022, there have been some changes to the golden visa . Germany: Federal Commissioner. From January 1st, 2021, the Principality of Andorra ceased to be part of the list of countries, territories and regions with clearly more favorable privileged taxation regimes, according to Ordinance No. EU Blacklist Update. i n practice this is not always the case and blacklist jurisdictions should preferably be avoided as income source countries as this may trigger some "red lights" with the tax authorities. The table below lists the country/jurisdiction used in the FATCA Online Registration System and the FFI List: 2-letter codes: Used in the XML file for adding sponsored entities and sponsored subsidiary branches. The Mauritius Government will soon start the process of removing the jurisdiction from the European Union (EU) 'blacklist' of high-risk countries, which reflects FATF grey listing. On 28 January 2021, the Luxembourg parliament approved bill of law n°7547 implementing measures concerning the non-tax-deductibility of interest and royalty payments made to entities located in non-cooperative jurisdictions. On 22 February 2021, the Council of the European Union (the Council) updated the European Union (EU) list of non-cooperative jurisdictions for tax purposes (the EU List). The list will be updated annually. The Resolution calls for stricter enforcement of its 'blacklist' of non-cooperative tax jurisdictions, including by . . See below (using the links) PwC's 2021 Tax Guide, which includes detailed information about the Portuguese tax system, considering the amendments introduced by the 2021 . 2.1 Article 123 bis provides that French residents who own 10% or more in a financial investment holding entity situated in a low tax jurisdiction are taxed on a look-through basis on their share of the income arising within the . The matter has been recently addressed for the first time in a decision issued by a Portuguese arbitral court rendered last year and published in March (see arbitral case 217/2021-T). Tax implications in the Netherlands The Netherlands has a blacklist for jurisdictions without a statutory profit tax and jurisdictions with a . Subject to stamp duty whenever the recipients are not settlors of the trust. Starting as from January 1, 2021, the highest PTT rate (set at . The termination is effective 1 January 2022, as per Article 30 of the Convention. Cayman Islands and Oman are removed from the list, Barbados and Anguilla are listed. On February 18, 2020, EU Finance Ministers agreed to add the Cayman Islands, Palau, Panama and Seychelles to the blacklist, after making assessments of the implementation commitments made by each jurisdiction at the end of 2018. The European Union announced today it has removed Barbados from its blacklist of countries it deems non-cooperative in matters of taxation, and added Dominica. The reason for these bans is that the countries are blacklisted under the authority of the Financial Action Task Force (FATF), an intergovernmental body that the G7 group of nations founded in 1989.A country is blacklisted if the FATF and its member states deem it . The following changes will affect corporate structures that already own, or are considering purchasing, property in Portugal: The general Property Purchase Tax ("PTT" or "IMT") on purchase of properties by entities resident in blacklisted jurisdictions has been broadened. Executive summary. Oman). This tax works as . This, as the country is forced to wait until February 2021 to find out if it will be removed from the Organization for Economic Cooperation and Development (OECD) list of jurisdictions partially compliant with the exchange of tax . 2.1 Article 123 bis provides that French residents who own 10% or more in a financial investment holding entity situated in a low tax jurisdiction are taxed on a look-through basis on their share of the income arising within the . Compared with last year's blacklist, only Seychelles is removed. . EU Finance Ministers have updated the EU list of non-cooperative tax jurisdictions, based on an intense process of analysis and dialogue steered by the Commission. Self-employed people and companies that produce, market, or provide products and services in Portugal must pay the VAT to tax authorities. Compared with previous' years blacklist, three jurisdictions have been added to the blacklist (i.e. The list contains the countries, territories, and regions with clearly more favorable privileged taxation regimes. from the blacklist. Three European countries - Malta, Monaco and Cyprus - are among those nations flagged as operating high-risk schemes that sell either . . Banks and corporations must take call of action to perform extensive due diligence from clients in these countries and have to apply counter measures to protect international financial system. This is the second in a series of posts around the 'blacklisting' of Mauritius by the European Union (EU) in 2020 and the steps that the jurisdiction is taking to ensure its removal from the list at the earliest opportunity. . Moreover, as per 1 januari 2021, a new tax has been introduced in the Netherlands: the so-called conditional withholding tax on interest and royalty payments. This special tax regime does not grant a While local political leaders here have made much of the efforts . Blacklisted jurisdictions . The Portugese budget act proposal for 2021 was published. The following changes will affect corporate structures that already own, or are considering purchasing, property in Portugal: The general Property Purchase Tax ( "PTT" or "IMT") on purchase of properties by entities resident in blacklisted jurisdictions has been broadened. Out of the ninety-two jurisdictions initially chosen for screening, seventeen jurisdictions were placed on the blacklist in December 2017. This is an assessment of non-EU countries according to the . Portuguese Government removes Andorra from the "blacklist". On 1 January 2021 the Dutch Ministry of Finance updated the Dutch blacklist of low-taxed jurisdictions which is applicable for the year 2021. In addition, arrangements where the first step is implemented . This usually means a property worth €500,000 or more, but in some cases it could be as low as €350,000 or even €280,000. from a blacklisted tax jurisdiction that does not have a double taxation agreement with Portugal, as per Appendix 2) will be exempt from income tax in Portugal if they may be taxed in the source country: • Dividends, interest and real estate income (e.g. Antigua and Barbuda. Special Portuguese provisions governing transactions with entities located in tax havens (offshore) provide for increased taxation and special anti-abuse measures. Anguilla, Dominica and . Jersey and the threat of the EU Blacklist. On Thursday 21 October the Financial Action Task Force (FATF) announced that Mauritius would be removed from its grey list of countries under increased monitoring. The document will soon be sent for Presidential promulgation. a) A surtax of 1.5%, levied by the local council (Câmara Municipal), may apply. As it happens with the UAE, even though they are blacklisted jurisdictions for Portugal, they have DTTs with Portugal . Review of the list: Barbados is removed, Dominica is listed. Tax. On February 22nd, 2021, the EU made amendments to its list of non-cooperative third countries. c) Qualifying small or medium enterprises (SMEs) may benefit from a reduced tax rate of 17% on the first €25,000 of taxable income and 21% on the remainder. This difficult question deserves to be raised as Portugal included in the Budget Law for 2021 an anti-abuse rule that sets a RETT aggravated rate directed to companies acquiring Portuguese real . Whenever the recipient is not a . On the 22 nd of January, the EU adopted a resolution requesting governments of member states to review its list of non-cooperative jurisdictions for tax purposes. The countries added to the list (14 page / 265KB PDF . Jurisdiction Type Date of Whitelisting Notes Andorra Country January 1, 2021 Portugal has signed an agreement of exchange of tax information and an Agreement to Avoid Double Taxation, in force since April 23, 2017, with Andorra.. Executive summary. Council updates list of non-cooperative countries for tax purposes. Cayman investment funds may have narrowly avoided the impact of any defensive measures taking effect from 1 January 2021 in EU Member States as a direct result of being blacklisted, it remains to be seen whether the blacklisting will result in increased compliance caused by . GUIDES 2021 The Legal 500 Country Comparative Guides Portugal PRIVATE CLIENT Contributing firm Durham Agrellos Durham Agrellos Miguel Durham Agrellos Founding Partner | mda@da.pt Paulo da Rocha Pichel Partner | prp@da.pt This country-specific Q&A provides an overview of private client laws and regulations applicable in Portugal. EU blacklist of non-cooperative jurisdictions, first adopted on December 5, 2017, is part of the EU's effort to clamp down on tax avoidance and harmful tax practices. Uruguay. "blacklisted" jurisdiction, i.e., in a jurisdiction included on the list approved 15 December 2020 Global Tax Alert Portugal's 2021 State Budget Law: Key tax measures impact real estate sector EY Tax News Update: Global Edition EY's Tax News Update: Global Edition is a free, personalized email subscription service that allows Time for a real reform to stop tax havens escaping the EU blacklist. 02.03.21 News. Yemen Arab Republic. 05/10/2021 Seychelles was removed from the EU list . The case involved two individuals residing in Lebanon, a blacklisted jurisdiction, who had sold immovable property in Portugal. The gray list has the following countries: Australia, Barbados, Botswana . A few countries have made it out of the "gray list", namely: Morocco, Namibia, and Saint Lucia. Sanctions at the National Level Against Blacklisted Jurisdictions. Oman). Germany: Brandenburg. The blacklist last amended by Ministerial Order No. Denmark increases tax measures against blacklisted jurisdictions. Raquel Maurício of Morais Leitão considers aggravated taxation imposed in connection to blacklisted jurisdictions and ECJ case law. Cayman Islands added to blacklist.The EU Council (comprising the finance ministers of the 27 EU Member States) announced on 18 February 2020 that the Cayman Islands, alongside Palau, Panama and the Seychelles, has been added to the EU's list of noncooperative jurisdictions in tax matters, known as the EU's tax haven "blacklist". Sweden terminated the Convention between Portugal and Sweden for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, signed on 29 August 2002. . Tomorrow, Tuesday 16 February, European Union finance ministers will review the EU tax havens list, officially known as the EU list of non-cooperative jurisdictions for tax purposes. . PwC's 2021 Tax Guide, for companies and individuals, reflects the amendments introduced by the 2021 State Budget and other relevant tax legislation published throughout 2021. Blacklist. Tax implications in the Netherlands The Netherlands has a blacklist for . Compared with previous' years blacklist, three jurisdictions have been added to the blacklist (i.e. Portugal IG, TIP Qatar IMF OFC TIP Romania TIP . The European Union announced today it has removed Barbados from its blacklist of countries it deems non-cooperative in matters of taxation, and added Dominica. APPENDIX 2 - PORTUGAL'S BLACKLIST JURISDICTIONS APPENDIX 3 - LIST OF NHR ELIGIBLE OCCUPATIONS APPENDIX 4 - NHR TAXATION SUMMARY TABLE 19 . Anguilla. 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