On November 3, the German Ministry of Finance published a list of "non-cooperating" states that do not share financial information with the jurisdiction.
The Law to Prevent Tax Avoidance and Unfair Tax Competition and Amend Other Laws of July 25, 2021 contains provisions on the introduction of certain sanctions against countries that prevent the exchange of tax information with Germany.
The measures specified in the Law are intended to restrict individuals and legal entities from doing business with “non-cooperating” jurisdictions. Companies will be denied tax deduction. For a CFC, more stringent tax rules are introduced if it is controlled from jurisdictions included in the list.
The list of jurisdictions in the draft is based on the latest list of EU countries and territories that refuse to cooperate in the exchange of tax information.
Which jurisdictions are not lucky to be on the list:
- American Samoa
- Fiji
- Guam
- Palau
- Panama
- Samoa
- Trinidad and Tobago
- US Virgin Islands
- Vanuatu
