Germany · Proposed legislation
Germany proposes tax-haven defence list update
On 12 October 2026, Germany's Federal Ministry of Finance and Federal Ministry for Economic Affairs and Energy published a draft fourth amendment to the Tax Haven Defence Ordinance, proposing to add the Turks and Caicos Islands and recognise four 2026 removals.
- Official document:
- Draft Fourth Ordinance amending the Tax Haven Defence Ordinance
- Development date:
- 2026-10-12
The proposed list would contain eight jurisdictions
Article 1 would replace section 2 of the Ordinance. The active list would comprise American Samoa, Anguilla, Guam, Palau, the Russian Federation, the Turks and Caicos Islands, the US Virgin Islands and Vanuatu. The explanatory memorandum links the changes to the EU list updates of 17 February and 9 October 2026. Vietnam was added in February and removed in October; because both events occurred between Germany's annual domestic updates, the draft says it would have no German tax consequences.[1][4][5]
Four removals would receive 2026 cessation dates
The draft records 17 February 2026 as the cessation date for Fiji, Samoa and Trinidad and Tobago, and 9 October 2026 for Panama. Under section 3(3) of the Tax Haven Defence Act, the defensive measures cease from 1 January of the calendar year in which the stated removal conditions are met, or from the start of the corresponding non-calendar financial year. The current Ordinance still lists all four jurisdictions, so the proposed relief does not replace the operative text before adoption and promulgation.[1][2][3]
Turks and Caicos would enter a staged regime
Listing does not activate every measure immediately. Section 3 of the Act generally applies the enhanced controlled-foreign-company inclusion, extended withholding-tax rules and additional cooperation and documentation requirements from the start of the year following the Ordinance's entry into force. The restriction on participation exemptions follows in the third year, while the deduction prohibition begins in the fourth year. For a non-calendar financial year, the relevant financial-year start replaces 1 January.[2]
The commencement date is not yet fixed
The draft Ordinance would enter into force on the day after promulgation, but its promulgation date remains blank. The precise staged dates for the Turks and Caicos Islands therefore cannot yet be fixed. Groups should nevertheless map payments, shareholdings and other dealings involving entities there, including items potentially affected by deduction denial, enhanced CFC treatment, withholding tax or expanded record-production duties. The measure remains a ministerial proposal requiring Bundesrat consent and promulgation; the current Ordinance continues to apply until then.[1][2][3]
Official sources
- [1] Draft Fourth Ordinance amending the Tax Haven Defence Ordinance
Federal Ministry of Finance and Federal Ministry for Economic Affairs and Energy · Document date: 2026-10-12
Complete official eight-page draft read. Page 1 identifies the ministries, title and draft status. Page 3 sets out the proposed eight-jurisdiction section 2(1) list. Page 4 states the four section 2(2) cessation dates and day-after-promulgation commencement. Pages 5-6 explain the purpose and 2026 EU-list changes; pages 7-8 provide the article-level explanation. Working version dated 12 October 2026 at 11:09.
- [2] Tax Haven Defence Act (Steueroasen-Abwehrgesetz), consolidated text
Federal Ministry of Justice and Federal Office of Justice · Document date: 2021-06-25
Official consolidated text read. Section 1(3) contains the treaty override. Section 3(1)-(3) provides the ordinance authority, staged application and cessation mechanics. Sections 8-12 contain deduction denial, enhanced CFC inclusion, extended withholding, participation-exemption restrictions and enhanced cooperation duties. The page records the Act's 25 June 2021 execution date and amendment through 2 December 2024.
- [3] Tax Haven Defence Ordinance (Steueroasen-Abwehrverordnung), consolidated text
Federal Ministry of Justice and Federal Office of Justice · Document date: 2021-12-20
Official consolidated text read. Section 2(1) contains the current eleven-jurisdiction active list, including Fiji, Panama, Samoa and Trinidad and Tobago. Section 2(2) records the Turks and Caicos Islands as having ceased to meet the conditions from 20 February 2024. The page records the Ordinance's 20 December 2021 execution date and amendment through 20 December 2024.
- [4] Council updates the EU list of non-cooperative jurisdictions for tax purposes
Council of the European Union · Document date: 2026-10-09
Official Council release read. It records the 9 October 2026 removal of Panama and Vietnam and the resulting eight jurisdictions in Annex I.
- [5] Council updates the EU list of non-cooperative jurisdictions for tax purposes
Council of the European Union · Document date: 2026-02-17
Official Council release read. It records the 17 February 2026 additions of the Turks and Caicos Islands and Vietnam and the removals of Fiji, Samoa and Trinidad and Tobago.