Germany published the Third Ordinance amending the Tax Haven Defense Ordinance in the Official Gazette on 30 December 2024.

The amendments reflect the EU Economic and Financial Affairs Council’s 2024 decisions to remove Antigua and Barbuda, the Bahamas, Belize, the Seychelles, and the Turks and Caicos Islands from the EU list of non-cooperative jurisdictions. These removals are effective from 8 October 2024 for Antigua and Barbuda and 20 February 2024 for the other jurisdictions.

Following the changes, 11 jurisdictions remain on Germany’s list, including American Samoa, Anguilla, Fiji, Guam, Palau, Panama, Russia, Samoa, Trinidad and Tobago, U.S. Virgin Islands, and Vanuatu.

Earlier, The German Federal Council (Bundesrat) approved an updated decree listing states and territories considered non-cooperative in addressing tax avoidance and unfair tax competition on 20 December 2024.

The list aligns with the one published in the Official Journal of the European Union. As part of the update, Antigua and Barbuda, Bahamas, Belize, the Seychelles, and the Turks and Caicos Islands are removed from the list, with changes taking effect between February and October 2024.

The decree, which will come into force once published in the Official Gazette, continues to include jurisdictions such as Anguilla, American Samoa, Fiji, Guam, Palau, Panama, Russia, Samoa, Trinidad and Tobago, the US Virgin Islands, and Vanuatu.

The list is important in domestic law that addresses tax avoidance and unfair tax competition, outlining measures to tackle these issues. One of these measures is the denial of deductibility for business expenses related to transactions with entities in non-cooperative jurisdictions.

The Ministry of Finance released a draft bill on 10 October 2024 of an updated decree listing states and territories considered non-cooperative in tackling tax avoidance and unfair tax competition.