Eswatini Remains on EU Grey List for Tax Purposes

Eswatini– The recent update to the European Union’s list of non-cooperative jurisdictions for tax purposes has seen Eswatini maintaining its position on the Grey List, signifying ongoing concerns regarding tax governance in the country.

While some movement was observed in the recent update, with various jurisdictions being removed from the lists, Eswatini remains on the Grey List. The Grey List comprises jurisdictions that have committed to implementing tax governance standards but have not fully delivered on their promises.

Inclusion on the Grey List does not necessarily imply wrongdoing, but it does raise concerns about a jurisdiction’s commitment to international tax transparency and compliance. Eswatini’s removal from the Grey List will depend on its success in meeting the EU’s expectations and demonstrating tangible progress in addressing tax governance issues.

The specific reasons for Eswatini’s continued placement on the Grey List have not been publicly disclosed by the EU. However, common reasons for Grey List inclusion include inadequate legal frameworks for anti-money laundering and countering terrorist financing, as well as deficiencies in information exchange with other tax authorities.

The EU Blacklist, which consists of jurisdictions deemed non-cooperative for tax purposes, now includes American Samoa, Anguilla, Antigua and Barbuda, Fiji, Guam, Palau, Panama, the Russian Federation, Samoa, Trinidad and Tobago, the US Virgin Islands, and Vanuatu.Meanwhile, several jurisdictions have been removed from the Grey List after fulfilling their commitments. Albania and Hong Kong were removed after amending harmful tax regimes, while Aruba and Israel fulfilled their commitments related to the automatic exchange of information. Additionally, Botswana and Dominica received positive ratings for their exchange of information practices and were removed from the Grey List.

Eswatini remains on the Grey List alongside Armenia, Belize, the British Virgin Islands, Costa Rica, Curaçao, Malaysia, Seychelles, Turkey, and Vietnam. The next update to the EU’s Blacklist and Grey List is expected in October 2024.