Partner
Attorney at Law (Germany)
Vietnam has been added to the EU list of non-cooperative jurisdictions for tax purposes
- Part of the EU´s effort to combat tax evasion and avoidance.
- Listing alone does not trigger any immediate compliance obligations.
- Implementation in national law is required.
On 17 February 2026, Vietnam was added to the EU list of non-cooperative countries and territories for tax purposes. The EU list is part of the EU's efforts to combat tax evasion and tax avoidance. It includes countries that have failed to meet their obligations to comply with certain governance criteria within a specified period of time, as well as countries that have refused to do so.
What does this mean for German companies?
Inclusion in the EU list alone does not trigger any immediate compliance obligations under the law of EU member states, as implementation into national law is required. In Germany, this is done by amending the Tax Haven Defense Regulation (Steueroasen-Abwehrverordnung). The following timetable applies:
- December 2026: Amendment to the Tax Haven Defense Regulation to take account of the new list – please note that the EU list is amended twice a year in February and October and that the October list is used for this amendment. It remains to be seen whether Vietnam will still be on the EU list in October 2026.
- If this is the case, the Tax Haven Defense Act (StAbwG) would apply to German business relations with Vietnam from January 2027 and would entail significantly stricter regulations to combat tax avoidance, such as:
- Suspension of the application of certain provisions of double taxation agreements,
- stricter rules for controlled foreign companies (CFCs),
- withholding tax on certain payments to Vietnam, and
- extended reporting requirements.
- · From 2029, measures relating to profit distribution and capital gains will be added, and finally, from 2030, a ban on the deduction of expenses for corporation tax purposes in connection with Vietnam-related expenses of German companies.
If Vietnam is removed from the list in 2027, the application of these rules will be retroactively repealed. However, it is currently uncertain whether the upcoming OECD assessments in 2026 or 2027 will result in Vietnam’s removal.
How should you prepare for the situation in 2026?
Although inclusion in Annex I of the EU list triggers immediate tax measures (see above), certain existing reporting requirements will apply in 2026:
Public country-by-country reporting (CbCr) (EU Directive 2021/2001/EU)
Multinational enterprises (MNEs) in the EU with a turnover of more than €750 million in each of the last two financial years, operating in the countries listed in the EU list, must comply with the OECD and EU CbCr standards to ensure tax transparency. Violations may result in inclusion on the blacklist.
DAC 6 (EU Directive 2018/822) Reporting
Vietnam’s inclusion in the list may also trigger mandatory disclosure under DAC6, which requires the reporting of certain cross-border arrangements that may indicate an increased tax risk. A key feature of DAC6 is the early warning system: intermediaries (or in some cases taxpayers) must report potentially reportable arrangements within 30 days of their implementation or readiness for implementation.
Conclusion
Overall, German companies with branches or business relationships in Vietnam face increased compliance requirements following the EU’s decision to include Vietnam in Annex I. Although the final impact will depend on developments at the end of 2026 and 2027, companies should use this time to improve the governance, documentation and transparency of all activities related to Vietnam.
Close cooperation with Vietnamese partners and subsidiaries will also be crucial, particularly to improve access to business records, accounting information and bank records to meet EU expectations.
If you have any questions about how these developments might affect your business, our tax and legal team will be happy to assist you.