EU Lifts Fiji from Tax Blacklist as Reforms Pay Off

Fiji has officially been taken off the European Union’s list of non-cooperative jurisdictions for tax purposes, commonly referred to as the EU Blacklist. This positive development marks a significant milestone for the nation, which had been placed on the blacklist in March 2019 due to concerns surrounding tax transparency, fair taxation, and compliance with the Base Erosion and Profit Shifting (BEPS) minimum standards.

In the years leading up to this removal, the Fiji Revenue and Customs Service (FRCS) undertook extensive reforms in legislation, policy, and institutional frameworks to address the issues that led to the country’s listing. As a result, the EU’s decision to remove Fiji from the blacklist is seen as a restoration of confidence in its tax system and strengthens the nation’s international reputation. This move underscores Fiji’s commitment to global cooperation and responsible governance in taxation matters.

Fiji’s Minister of Finance, Esrom Immanuel, highlighted that this development will enhance the country’s international relationships, particularly with European Union member states. The removal from the blacklist is expected to restore confidence among foreign investors, trading partners, and major development partners, further supporting free trade under the EU-Pacific Interim Economic Partnership Agreement.

The Chief Executive Officer of the FRCS, Udit Singh, emphasized the achievement of this goal—a commitment made to secure Fiji’s removal from the EU blacklist within 12 to 18 months—was accomplished in just 10 months. He commended the FRCS team for their extensive technical expertise and dedication in reaching this important milestone. Singh also acknowledged the invaluable support from the Organisation for Economic Co-operation and Development (OECD) in helping Fiji implement the required international tax standards.

Overall, Fiji’s removal from the EU blacklist not only facilitates international trade and investment but also reflects the country’s proactive measures towards improving its financial governance, promising a brighter economic future for its citizens.