The Czech Republic has updated its list of non-cooperative tax jurisdictions in line with the EU framework, adding Vietnam and reaffirming stricter tax treatment for income linked to blacklisted territories, as part of ongoing efforts to curb tax avoidance and improve transparency.
The Czech Republic has published Financial Bulletin No. 5/2026 on 20 March 2026, which includes an updated list of jurisdictions classified as non-cooperative for tax purposes, aligning its domestic rules with the latest decisions of the Council of the European Union. The update list reflects changes to the European Union blacklist as of 6 March 2026.
Notably, Vietnam has been added to the list, joining several jurisdictions already identified for lacking sufficient tax transparency or cooperation.
The revised list includes:
- American Samoa
- Anguilla
- Guam
- Palau
- Panama
- Russia
- Turks and Caicos
- U.S. Virgin Islands
- Vanuatu
- Vietnam
Under Czech tax law, income derived through entities or permanent establishments located in these jurisdictions is subject to controlled foreign company (CFC) rules. This means such income may be treated as if it were earned directly in the Czech Republic, potentially increasing the domestic tax burden for Czech-based companies.
The measure is designed to prevent profit shifting and tax avoidance by discouraging the use of offshore structures in low-transparency jurisdictions.
The EU periodically reviews and updates its list of non-cooperative jurisdictions based on criteria such as tax transparency, fair taxation, and implementation of anti–base erosion measures. Member states, including the Czech Republic, incorporate these updates into national legislation to ensure consistent enforcement.
The updated Czech list remains effective until further notice, reinforcing the country’s commitment to international tax compliance and cooperation.
