Assessment of Tax Transparency Measures

Following the recent update of the list of non-cooperative jurisdictions for tax purposes, according to the Code of Conduct Group (COCG) program as of February 2024, efforts to evaluate jurisdictions will continue. This includes specific assessment criteria, incorporating the following steps:

At the COCG meeting on November 22, 2023, a proposal for monitoring the implementation of protective measures in the tax sphere was discussed, forming the basis for ongoing work. The effectiveness of EU member states’ implementation of tax protective measures against jurisdictions on the “blacklist” will be evaluated in line with the approved 2019 Guidelines (see Annex 4).

Consideration is underway to include a new criterion 1.4 regarding beneficial ownership as the fourth criterion for tax transparency (potentially utilizing AML / Global Forum lists for tax transparency).

Preparation for future monitoring of compliance with criteria 1.1 and 1.2 following expected changes in the information exchange assessment process (automatic AEOI and EOIR upon request) by the Global Forum from 2025 onwards.

Preparation for assessment in the second half of 2024 under criterion 3.2 on country-by-country reporting (CbCR) by relevant jurisdictions that joined the BEPS Inclusive Framework after December 31, 2017.

Potential examination of trusts and similar structures in jurisdictions with low or 0% corporate tax rates in close cooperation with the Harmful Tax Practices Forum (FHTP).

Review of three new jurisdictions outside the EU: Brunei Darussalam, Kuwait, and New Zealand.

Assessment of compliance with the OECD’s GloBE Inclusive Framework BEPS rules, following the implementation of the second component (Pillar 2), for the purposes of criterion 2.2 on fair taxation.

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