EU to Take Korea off Tax Havens List
18 January, 2018
Korea is expected to be removed from the EU's blacklist of tax havens next week after becoming the only OECD member nation to be included late last year.
According to Bloomberg on Tuesday, EU finance ministers have proposed removing eight countries, including Korea, the UAE and Panama from their list of "non-cooperative jurisdictions" when they meet next week.
The move comes after those governments pledged to revise their tax regulations, but Bloomberg added that Korea will remain on a "gray list" of 47 countries "that will be monitored for compliance."
The EU blacklisted Korea over tax breaks for foreign investors in special business zones that it says disadvantage local firms, which do not get the tax breaks.
Korea has pledged to make the changes, if only to avoid tarnishing its credibility.