Germany’s Ministry of Finance has proposed amendments to the Tax Haven Defence Ordinance to reflect the 2026 EU list of non-cooperative jurisdictions. The draft removes several jurisdictions and re-lists the Turks and Caicos Islands, with defensive tax measures applying to listed territories.
Germany’s Ministry of Finance has published a draft ordinance on 12 October 2026 proposing amendments to the Tax Haven Defence Ordinance, which identifies jurisdictions classified as non-cooperative under the Tax Haven Defence Law.
The law aims to prevent tax avoidance and unfair tax competition. This ordinance incorporates the 2026 updates of the EU list of non-cooperative jurisdictions into German domestic law.
Statutory basis & mechanism of the ordinance
Germany’s draft ordinance is based on § 3(1) of the Tax Haven Defence Act and aligns the country’s list of non-cooperative tax jurisdictions with Annex I of the EU ECOFIN Council’s conclusions. Defensive tax measures and stricter compliance and cooperation requirements apply only to jurisdictions listed in the Tax Haven Defence Ordinance, supporting a coordinated EU-wide approach and preventing distortions in the single market.
ECOFIN 2026 updates & treatment of specific jurisdictions
The EU ECOFIN Council updates Annex I twice yearly (typically in February and October):
February 2026 decision:
- Additions: Turks and Caicos Islands, Vietnam.
- Removals: Fiji, Samoa, Trinidad and Tobago.
October 2026 decision:
- Removals: Panama, Vietnam.
Special treatment of Vietnam: Vietnam was added to the EU list in February 2026 and removed in October 2026 within the same calendar year. Because Germany updates its ordinance on an annual basis, Vietnam’s temporary listing during 2026 creates no domestic tax consequences or obligations under German tax law.
Turks and Caicos Islands re-listing: The Turks and Caicos Islands were previously listed from 21 December 2022 to 19 February 2024, then removed. Following their re-addition by the EU in early 2026, they are re-listed with effect from the date of promulgation.
The 8 listed non-cooperative jurisdictions
Once finalised and officially published, 8 jurisdictions will be listed as non-cooperative for German tax purposes, alongside their official listing start dates:
- American Samoa (since 24 December 2021)
- Anguilla (since 21 December 2022)
- Guam (since 24 December 2021)
- Palau (since 24 December 2021)
- Russian Federation (since 20 December 2023)
- Turks and Caicos Islands (since the date of promulgation)
- US Virgin Islands (since 24 December 2021)
- Vanuatu (since 24 December 2021)
Effective dates for removals
Section 2(2) of the Tax Haven Defence Ordinance specifies the dates from which certain jurisdictions ceased to be classified as non-cooperative:
- Fiji, Samoa and Trinidad and Tobago: With effect from 17 February 2026.
- Panama: With effect from 9 October 2026.
- Turks and Caicos Islands: Treated as compliant from 20 February 2024 until the day before the new ordinance is promulgated, after which the new listing under § 2(1) takes effect.
Legal consequences & administrative aspects
The ordinance will enter into force the day after its promulgation, providing immediate legal certainty for taxpayers.
Listing triggers defensive measures under the Tax Haven Defence Act, including stricter CFC rules, non-deductibility of business expenses, increased withholding taxes and profit adjustments. Germany may also temporarily override certain double taxation agreement provisions under § 1(3) StAbwG.
The draft ordinance is not expected to create additional administrative burdens beyond existing legal requirements.
