Panama and Vietnam removed from the EU list of non-cooperative jurisdictions for tax purposes
On 9 October 2026, Panama and Vietnam were removed from the EU list of non-cooperative jurisdictions for tax purposes.
Following the update of 9 October 2026, the EU list of non-cooperative jurisdictions for tax purposes contains 8 jurisdictions.
Panama and Vietnam were moved from Annex I to Annex II and remain subject to monitoring.
Vanuatu remains in Annex I despite progress on tax transparency, as concerns persist in another area.
Anguilla continues to face concerns regarding its tax information exchange framework.
Panama remains on Poland’s national list of countries and territories applying harmful tax competition.
EU and national tax classifications must be assessed separately
Removal from Annex I does not automatically eliminate restrictions arising under domestic tax legislation.
Panama remains relevant under Polish tax regulations
Despite its removal from EU Annex I, Panama remains on Poland’s list of countries and territories applying harmful tax competition.
A change in status does not end monitoring
Following their transfer to Annex II, Panama and Vietnam remain subject to monitoring as part of their cooperation with the EU.
Cross-border transactions require checks at both EU and Polish level
When assessing the tax implications of an international transaction, businesses should verify both the jurisdiction’s status at EU level and the relevant Polish domestic tax rules.
On 9 October 2026, the Council of the European Union revised the EU list of non-cooperative jurisdictions for tax purposes. Panama and Vietnam were removed from Annex I and transferred to Annex II, which covers jurisdictions cooperating with the EU while remaining subject to monitoring. Following the revision, Annex I contains 8 jurisdictions. For businesses operating in Poland, the EU classification must also be considered alongside Polish domestic tax regulations.
The latest revision reflects both progress made by certain jurisdictions in tax transparency and good tax governance and continuing concerns regarding other countries and territories. The most significant change is the removal of Panama and Vietnam from Annex I.
In this article:
Why were Panama and Vietnam removed from the EU list of non-cooperative jurisdictions for tax purposes?
The Council of the European Union decided to remove Panama and Vietnam from Annex I, which covers jurisdictions considered non-cooperative for tax purposes. The decision followed measures taken by both jurisdictions to address previously identified concerns.
Panama and Vietnam were transferred to Annex II, which covers cooperative jurisdictions that remain subject to monitoring. In both cases, an in-depth review of their tax information exchange frameworks by the Global Forum on Transparency and Exchange of Information for Tax Purposes is expected.
The Council also recognised Vanuatu’s progress in tax transparency. However, the jurisdiction remains in Annex I because concerns in another area have not yet been resolved.
For Anguilla, continuing concerns were identified regarding its exchange of information framework.
EU list of non-cooperative jurisdictions for tax purposes
Panama and Vietnam: from Annex I to Annex II
On 9 October 2026, the Council of the European Union revised the EU list. Panama and Vietnam left Annex I – and both remain subject to monitoring.
01
Starting point
Listed in Annex I
Annex I covers jurisdictions considered non-cooperative for tax purposes. Concerns had previously been identified for both Panama and Vietnam.
02
Action by both jurisdictions
Measures to address the concerns
Panama and Vietnam took measures to address the previously identified concerns. The decision of the Council followed these measures.
03
Council of the EU · 9 October 2026
Removed from Annex I, transferred to Annex II
The Council of the European Union decided to remove Panama and Vietnam from Annex I and transfer them to Annex II.
04
Status after the decision
Annex II – cooperative, under monitoring
Annex II covers jurisdictions cooperating with the EU on tax good governance while remaining under monitoring in relation to their commitments.
05
Expected
In-depth review by the Global Forum
In both cases, an in-depth review of their tax information exchange frameworks by the Global Forum on Transparency and Exchange of Information for Tax Purposes is expected.
Source: European Commission – update to the EU list of non-cooperative jurisdictions for tax purposes, 9 October 2026.
Which jurisdictions are on the EU list of non-cooperative jurisdictions for tax purposes in October 2026?
Following the update of 9 October 2026, the EU list of non-cooperative jurisdictions for tax purposes contains 8 jurisdictions:
- American Samoa
- Anguilla
- Guam
- Palau
- Russian Federation
- Turks and Caicos Islands
- US Virgin Islands
- Vanuatu
The list forms Annex I to the Council conclusions and is periodically updated based on jurisdictions’ compliance with international tax standards.
What changes were made to the EU list of cooperative jurisdictions?
The Council also updated Annex II, which covers jurisdictions cooperating with the EU on tax good governance while remaining under monitoring in relation to their commitments.
The main changes are summarised below:
| Jurisdiction | EU Council decision |
|---|---|
| Panama and Vietnam | Transferred from Annex I to Annex II |
| Belize | Removed from Annex II after meeting the requirements relating to exchange of tax information on request |
| Montenegro | Remains under monitoring pending publication of the outcome of an in-depth review |
| Brunei | Granted additional time to align its tax framework with fair taxation principles |
Following the changes, Annex II contains 10 jurisdictions: British Virgin Islands, Brunei, Eswatini, Greenland, Jordan, Montenegro, Morocco, Panama, Türkiye and Vietnam.
EU list · update of 9 October 2026
Annex I and Annex II after the 9 October revision
The Council of the European Union revised both annexes to its conclusions.
Annex I
8
jurisdictions on the EU list of non-cooperative jurisdictions for tax purposes
Remain in Annex I
Vanuatu
Progress on tax transparency recognised; concerns in another area not yet resolved.
Anguilla
Continuing concerns regarding its exchange of information framework.
Panama
Vietnam
Transferred
Annex II
10
cooperative jurisdictions that remain subject to monitoring
Removed from Annex II
Belize
Removed after meeting the requirements relating to exchange of tax information on request.
Source: European Commission – update to the EU list of non-cooperative jurisdictions for tax purposes, 9 October 2026.
What does the updated EU list mean for businesses operating in Poland?
The EU list of non-cooperative jurisdictions for tax purposes is a tool designed to support tax good governance standards, including tax transparency and measures to counter tax avoidance.
Removing a jurisdiction from Annex I does not automatically mean that restrictions arising under domestic tax legislation cease to apply. The EU list must therefore be distinguished from Poland’s national list of countries and territories applying harmful tax competition.
Cross-border transactions · Poland
EU list and Polish list: two separate checks
For businesses operating in Poland, the EU classification must also be considered alongside Polish domestic tax regulations.
Level 1 · EU
EU list of non-cooperative jurisdictions for tax purposes
Annex I to the Council conclusions, periodically updated based on jurisdictions’ compliance with international tax standards.
Level 2 · Poland
Poland’s list of countries and territories applying harmful tax competition
Must be distinguished from the EU list. Removal from Annex I does not automatically mean that restrictions under domestic tax legislation cease to apply.
Example
Panama – status at both levels
EU list – Annex I
Transferred to Annex II
Removed · 9 October 2026
Polish list – harmful tax competition
Current Polish list of countries and territories
Remains on the list
Businesses involved in cross-border transactions should verify both the jurisdiction’s current status under the EU framework and the applicable Polish domestic tax regulations.
Source: European Commission – update to the EU list of non-cooperative jurisdictions for tax purposes, 9 October 2026.
For example, despite its removal from EU Annex I, Panama remains on Poland’s current list of countries and territories applying harmful tax competition. Businesses involved in cross-border transactions should therefore verify both the jurisdiction’s current status under the EU framework and the applicable Polish domestic tax regulations.
If you have questions about international tax settlements or the implications of changes to tax jurisdiction lists, consider reviewing the specific transaction with specialists in tax advisory services in Poland.
Source:
This article was written by the getsix® Editorial Teamgetsix® provides accounting, tax advisory, HR and payroll, and business consulting services, supporting companies operating in Poland. The getsix® Editorial Team prepares practical information that makes Polish accounting, tax, and HR and payroll matters easier to understand.
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