EU Removes Panama and Vietnam from Tax Haven Blacklist

Panama and Vietnam have recently been removed from the European Union's list of tax havens after making significant changes to their tax policies. Panama improved its tax information sharing and overhauled a foreign-source income exemption that the EU found problematic. Vietnam also made various reforms, leading to its delisting. Currently, the blacklist features eight jurisdictions considered 'non-cooperative,' including American Samoa, Anguilla, Guam, Palau, Russia, the Turks and Caicos Islands, the US Virgin Islands, and Vanuatu. The EU remarked that this update shows progress in adhering to international tax governance standards. The blacklist was first introduced in 2017 in response to scandals like the Panama Papers, which revealed how the wealthy hid assets abroad.