On 18 February 2020, the Bahamas Ministry of Finance issued a statement on EU’s tax haven black list (Link).
The Bahamas Ministry of Finance states that the EU confirmed that The Bahamas has implemented the necessary reforms to meet the EU criteria on tax governance and cooperation on tax matters. The Government welcomes this decision and the positive impact it should have on growth to investor confidence in the industry.
In March 2019, The Bahamas was placed on the EU’s Annex II “the greylist”. While different from the more serious Annex I “the blacklist” of the EU List of Non-Cooperative Jurisdiction for Tax Purposes, The Bahamas was still subject to ongoing monitoring by the EU with respect to the implementation of economic substance requirements. With today’s move, The Bahamas has addressed all concerns on economic substance, removal of preferential exemptions and automatic exchange of tax information.