Today, October 17, 2023, the Registrar of Corporations for the Republic of the Marshall Islands reported the European Union’s (EU) Economic and Financial Affairs Council (ECOFIN) decision to remove the Marshall Islands (RMI) from the EU list of non-cooperative jurisdictions for tax purposes (EU List).
This came as part of ECOFIN’s semi-annual review of the compliance of jurisdictions with international tax standards related to tax transparency, fair taxation, and protections against base erosion and profit shifting, or “anti-BEPS” measures.
The Republic of the Marshall Islands advised that it had engaged “in an open, transparent dialogue with the EU and made every effort to fully clarify, enact, follow-up and monitor the implementation of its commitments to the EU.”
ECOFIN, in its announcement, noted that the “Marshall Islands was delisted as it has made significant progress in enforcement of economic substance requirements.” The British Virgin Islands and Costa Rica were also removed from the EU List, which is updated in February and October of each year.
For more information on the EU List, see the European Council’s webpage explaining relevant criteria and the listing process here.
If you have additional questions or would like to discuss compliance with the Marshall Islands Economic Substance Requirements, please contact your Seward & Kissel relationship partner.