According to a report by Investment International, The Bahamas, along with Belize, Seychelles, and Turks and Caicos Islands, have been removed from the European Union’s list of non-cooperative jurisdictions for tax purposes. This decision recognizes that these jurisdictions have implemented measures to address concerns around information exchange, harmful tax practices, artificial tax structures, and financial crime prevention.
The removal signals The Bahamas’ commitment at the highest political levels to comply with international tax standards. This is critical for The Bahamas’ reputation as a well-regulated financial center.
Industry associations in The Bahamas commended the government’s efforts and noted the positive impact this will have on investor confidence.
The EU list now consists of 12 non-cooperative jurisdictions. The EU Council urged these jurisdictions to improve their legal frameworks to resolve the identified issues.
The Bahamas and Turks and Caicos Islands specifically addressed prior deficiencies in enforcing economic substance requirements, leading to their removal.
Belize and Seychelles were removed pending supplementary reviews by the OECD Global Forum regarding information exchange.
The EU also recognized progress made by several other jurisdictions in meeting tax governance commitments.
