Global Tax Alert | 29 August 2013

French Government updates blacklist of non cooperative countries

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On 28 August 2013, the French Government released its annual update of the list of Non Cooperative States or Territories (NCST).

Since the Amended Finance Bill for 2009,1 transactions involving NCST are subject to higher than standard withholding tax rates, stronger anti-avoidance or disclosure rules and denial of certain exemption regimes.

The 2013 update removes Philippines from the list of NCST (effective as from 1 January 2013) but adds Bermuda, the British Virgin Islands and Jersey (effective as from 1 January 2014).

The remaining NCST are the following: Botswana, Brunei, Guatemala, Marshall Islands, Montserrat, Nauru and Niue.

The three newly added NCST have been included because of unsatisfactory application of existing administrative assistance agreements with France, as determined by the French Government.

It is the first time that the French Government makes use of this ground to add a country to the list of NCST.

Taxpayers will need to closely review the impact on current structures and contracts involving France and these countries.

Endnote

1. See EY Global Tax Desk Alert, France, French Parliament enacts Finance Bill for 2010 and Amended Finance Bill for 2009, dated 8 January 2010.

For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP, French Tax Desk, New York
  • Frédéric Vallat
    +1 212 773 5889
    frederic.vallat@ey.com
  • Daniel Brandstaetter
    +1 212 773 9164
    daniel.brandstaetter@ey.com
  • Martin Birée
    +1 212 773 3065
    martin.biree@ey.com

Ernst & Young LLP, Financial Services Desk, New York
  • Sarah Belin-Zerbib
    +1 212 773 9835
    sarah.belinzerbib@ey.com

EYG no. CM3773