EU Annex II Update - Bermuda & BVI

On 24 February 2022 the European Council confirmed that ten countries, including Bermuda and the British Virgin Islands (“BVI”), will be included in Annex II (sometimes referred to as the EU Tax Grey List).

Annex II is a list of jurisdictions that have made sufficient commitments to reform their tax policies but remain subject to close monitoring while they are executing on their commitments. It is expected that countries that have met their commitments will be removed from Annex II at the next opportunity later in 2022.

No direct penalties or sanctions will be imposed by any EU member states on entities or institutions in listed jurisdictions as a result of their inclusion in Annex II. As such, there should be no impact for our clients or Bermuda or BVI entities with respect to doing business in Bermuda or BVI. In particular, it will not give rise to any impediments or repercussions for European investors investing in Bermuda or BVI based structures.

The Annex II list is separate and distinct to the EU’s Annex I list (also known as the EU Tax Blacklist) and the EU AML List, neither of which Bermuda and BVI are on.

Walkers Professional Services is available to assist entities with economic substance and country-by-country-reporting filings where required under the applicable legislation. In addition, Walkers’ dedicated Regulatory & Risk Advisory Group can advise on the applicable relevant activity classifications and can assist entities in determining how to meet any applicable economic substance requirements or whether country-by-country reporting applies.

  

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BERMUDA
Natalie NetoPartnerT +1 441 242 1533natalie.neto@walkersglobal.com
Melanie FullertonSenior AssociateT +1 441 242 1537melanie.fullerton@walkersglobal.com
Otelia ScottDirectorT +1 441 242 1553otelia.scott@walkersglobal.com

BRITISH VIRGIN ISLANDS
Matthew Cowman Managing PartnerT +1 284 852 2208matthew.cowman@walkersglobal.com
Lucy FrewPartnerT +1 345 814 4676lucy.frew@walkersglobal.com
Nicholas QuinManaging DirectorT +1 345 914 4295nicholas.quin@walkersglobal.com
Daniel BoothSenior Vice PresidentT +852 2596 3334daniel.booth@walkersglobal.com
Hannah SagalaCorporate Services ExecutiveT +1 284 542 2286hannah.sagala@walkersglobal.com

CAYMAN ISLANDS
Lucy FrewPartnerT +1 345 814 4676lucy.frew@walkersglobal.com
Nicholas QuinManaging DirectorT +1 345 914 4295nicholas.quin@walkersglobal.com

DUBAI
Daniel WoodManaging PartnerT +971 4 363 7912daniel.wood@walkersglobal.com

HONG KONG
Andy RandallManaging PartnerT +852 2596 3305andy.randall@walkersglobal.com
Daniel BoothSenior Vice PresidentT +852 2596 3334daniel.booth@walkersglobal.com

LONDON
Jack BoldarinManaging PartnerT +44 (0)20 7220 4995jack.boldarin@walkersglobal.com

SINGAPORE
John RogersManaging PartnerT +65 6595 4673john.rogers@walkersglobal.com

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