Fiji removed from EU tax blacklist after years of reform

Fiji has been removed from the European Union’s blacklist of non-cooperative jurisdictions for tax purposes, marking what the Fiji Revenue and Customs Service (FRCS) describes as a major milestone for the country’s international standing and investment prospects.

Announcing the development this morning, FRCS Chief Executive Officer Udit Singh says the decision follows three to four years of sustained legislative and policy reform aimed at aligning Fiji’s tax framework with global standards on transparency and fair taxation.

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Fiji was first blacklisted in 2019 following a European Union Code of Conduct audit conducted in 2017.

At the time, concerns were raised over tax transparency, harmful tax practices and the implementation of Base Erosion and Profit Shifting (BEPS) standards, international measures designed to prevent multinational companies from shifting profits to low-tax jurisdictions.

Singh says comprehensive reforms were required to address those concerns and meet evolving international benchmarks.

Over the past several years, FRCS, alongside the Ministry of Finance and the Ministry of Trade, undertook wide-ranging changes to legislation and policy.

Singh says this involved close engagement with international bodies including the OECD, the European Union, the Global Forum on Transparency and Exchange of Information for Tax Purposes, the International Monetary Fund and other development partners.

Singh says among the key reforms was Fiji’s decision to join the Global Forum on Transparency and Exchange of Information, enabling the exchange of tax information with approximately 150 jurisdictions worldwide.

Fiji also signed and implemented the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC), a global instrument involving more than 150 countries.

Singh says joining the MAC required endorsement from all participating jurisdictions and reflected confidence in Fiji’s commitment to international standards.

The reforms also included reviewing and amending potentially harmful tax practices and aligning domestic laws with international best practice. Several legislative amendments were taken to Cabinet and Parliament, with the Government providing strong backing throughout the process.

He also acknowledged the technical complexity of the reforms and the cross-government coordination required to deliver them, thanking the Ministry of Finance, including Minister Biman Prasad and Minister Charan Jeath Singh, as well as FRCS Board and management, for their support.

He says the removal from the EU blacklist carries significant economic implications and that the EU’s advisory lists are closely monitored by multinational corporations when making decisions about investment destinations.

He says stronger investor confidence can have wider economic benefits, including job creation, economic growth and strengthened relationships with European Union member states and development partners.

Looking ahead, Singh says Fiji remains committed to sustaining international standards.

He says FRCS will continue working with the OECD and other partners to implement ongoing measures, including the automatic exchange of financial information with participating jurisdictions and the implementation of OECD Pillar Two global minimum tax standards.