Experts assessed the consequences of Russia being blacklisted by the EU

The European Union (EU) on February 14 included Russia in the black list of countries that do not cooperate in the field of taxation, follows from the message of the Council of the EU. The British Virgin Islands, Costa Rica, and the Marshall Islands were also added to it. There are now 16 jurisdictions on the list, including the Bahamas, Panama, the US Virgin Islands, Trinidad and Tobago. “We ask all of the listed countries to improve their legal framework and strive to comply with international standards in the field of taxation,” the message says.

The EU black list aims to reduce the motivation of European companies to invest in the countries included in it, said Yulia Krylova, director of the tax and legal department at DRT. A number of measures apply to transactions and transactions with organizations from the jurisdictions of this list, including increased taxation of “passive” income at source in the EU, stricter CFC rules, the obligation to disclose additional information and the ban on the deduction from the tax base of certain expenses incurred in favor of residents blacklisted jurisdictions, she noted.