EU Annex II Update - Bermuda & BVI

On 24 February 2022 the European Council confirmed that ten countries, including Bermuda and the British Virgin Islands ("BVI"), will be included in Annex II of its list of non-cooperative jurisdictions for tax purposes (sometimes referred to as the EU Tax Grey List).

Annex II is a list of jurisdictions that have made sufficient commitments to reform their tax policies but remain subject to close monitoring while they are executing on their commitments. It is expected that countries that have met their commitments will be removed from Annex II at the next opportunity later in 2022.

Note that this is to be distinguished from the European Commission's recent delegated regulation proposing to update the existing EU AML List to add the Cayman Islands (please click here to read our advisory on that issue in full).