FRCS and Govt work on complete removal of Fiji from EU Blacklist

The Fiji Revenue and Customs Service together with other arms of government, remain fully committed to the steps necessary for the complete removal of Fiji from the European Union’s list of non-cooperative jurisdictions, commonly known as the EU Blacklist.

The FRCS says they will continue to actively engage with international bodies and the EU officials to ensure our tax system remains transparent, fair, and aligned with global best practices.

They say Fiji is making real progress, and they are confident that their efforts will lead to a positive outcome for the country and its global reputation resulting in further trade and investment opportunities from European organisations.

Fiji was initially placed on the list in 2019 due to concerns over compliance with the EU’s international tax standards in three key areas: transparency, fair taxation, and the implementation of the Base Erosion and Profit Shifting (BEPS) minimum standards.

The initiative to remove Fiji from the EU Blacklist was formally commenced in 2023 with the joining of the BEPS inclusive framework and becoming a member of the Global Forum which is an agency of the OECD.

To meet international standards of transparency, Fiji has become a committed member of the Global Forum on Tax Transparency and Exchange of Information for Tax Purposes.

FRCS says this membership is a major step forward and demonstrates their resolve to operate with openness and integrity in the global financial system.

FRCS has been working with the Global Forum to put in place systems for both the Exchange of Information on Request and Automatic Exchange of Information.

These are key tools that allow countries to share tax information and combat cross-border tax evasion.

As part of this process, a comprehensive maturity assessment was conducted across various arms of government, including the Ministry of Finance, Ministry of Justice, Fiji Financial Intelligence Unit, Reserve Bank of Fiji, Association of Banks, and Fiji Institute of Chartered Accountants.

This assessment confirmed Fiji’s strong legal framework to support international tax cooperation.

Fiji’s commitment was further reinforced during a recent high-level visit by the Head of the Global Forum, Zayda Manatta.

FRCS Chief Executive Officer, Udit Singh, along with the Director of Corporate Services, Shavindra Nath, participated in the 17th Plenary Meeting of the Global Forum on Transparency and Information Sharing held in Asuncion, Paraguay in November 2024.

Singh delivered a speech at the event, which was attended by representatives from 110 countries, reaffirming Fiji’s strong commitment to international tax cooperation.

To address EU concerns around fair taxation, Fiji reviewed and reformed several tax incentive policies.

The Export Income Deduction, ICT income tax exemption, and the concessionary corporate tax rate for Global Headquarters Relocation were identified by the EU as harmful tax practices.

Fiji has taken firm action on abolishing the Global Headquarters Relocation incentive and amending the ICT incentive to remove harmful elements.