EU list of non-cooperative jurisdictions 2026 – what it means for businesses in Poland

The EU list of non-cooperative jurisdictions 2026 was updated on 17 February 2026. The Council of the European Union added the Turks and Caicos Islands and Vietnam to the list, while Fiji, Samoa and Trinidad and Tobago were removed. Following the update, the list includes 10 jurisdictions. For companies operating internationally — including foreign businesses active in Poland — this change is relevant for tax risk assessment, counterparty verification, cross-border payments and documentation obligations.

The list is not merely a formal catalogue of countries and territories. It is one of the European Union’s tools for promoting tax transparency, fair taxation and the exchange of tax information between jurisdictions. From a business perspective, the key point is that the presence of a jurisdiction on the list may increase the level of caution required when analysing transactions, ownership structures and financial flows.

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What is the EU list of non-cooperative jurisdictions?

The EU list covers jurisdictions that do not meet agreed international tax standards or have not fulfilled their commitments on tax good governance within the required timeframe.

At EU level, the assessment focuses mainly on three areas:

• tax transparency,
• fair taxation,
• implementation of international standards aimed at preventing base erosion and profit shifting.

The list was first established in December 2017 as part of the EU’s external strategy for taxation. Its purpose is to encourage countries and territories to amend rules and practices that may facilitate tax avoidance, lack of transparency or insufficient cooperation with other tax administrations.

The list is updated twice a year. This means that the status of a jurisdiction may change, and companies should base their counterparty and international structure reviews on current data rather than information from previous years.

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Current EU list after the February 2026 update

Following the update of 17 February 2026, the EU list of non-cooperative jurisdictions for tax purposes includes 10 jurisdictions:

• American Samoa,
• Anguilla,
• Guam,
• Palau,
• Panama,
• Russia,
• Turks and Caicos Islands,
• US Virgin Islands,
• Vanuatu,
• Vietnam.

The Council of the European Union added the Turks and Caicos Islands and Vietnam to the list. At the same time, Fiji, Samoa and Trinidad and Tobago were removed, as they now comply with the agreed international standards.

In the case of the Turks and Caicos Islands, concerns related to the enforcement of economic substance requirements were indicated. Vietnam was listed in connection with the assessment of standards for the exchange of tax information on request. The update shows that the EU list is dynamic. It is not a fixed catalogue of jurisdictions with an unchanged status, but a tool for the regular monitoring of tax practices.

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Why is the 2026 update important for companies?

The February 2026 update shows both positive and negative developments in international tax cooperation. The addition of new jurisdictions means that the EU continues to identify areas where standards of transparency, information exchange or economic substance are considered insufficient. The removal of other jurisdictions confirms that the list also reflects progress in implementing reforms.

For businesses, this means that tax analysis must be based on up-to-date information. A counterparty or international structure review should not rely solely on data from a few months earlier or from the previous year. This is particularly important for high-value transactions, recurring payments and payments made to jurisdictions outside the European Union.

The update may be relevant in particular when a company:

• starts cooperation with a new foreign counterparty,
• changes its ownership or financing structure,
• pays dividends, interest or royalties,
• purchases intangible services from foreign entities,
• prepares transfer pricing documentation,
• carries out a periodic tax risk review.

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The EU list and Polish tax regulations

The EU list of non-cooperative jurisdictions should not be automatically equated with the Polish list of countries and territories applying harmful tax competition. These are related, but separate, instruments.

In practice, a company should review both levels of regulation: the EU list, because it identifies jurisdictions assessed from the perspective of EU standards, and Polish tax law, because Polish regulations determine the specific tax consequences for settlements in Poland.

This approach is especially important when analysing withholding tax (WHT), transfer pricing, corporate income tax (CIT) and documentation obligations. In some cases, the classification of a payment, the status of the payment recipient and the relationship between the parties involved in the transaction may also be relevant.

From the perspective of a Polish taxpayer, the key question is therefore not only whether a given jurisdiction appears on the EU list. It is equally important to determine what tax consequences arise under Polish acts, double tax treaties and the practice of Polish tax authorities.

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Due diligence in transactions with foreign entities

The update of the EU list should be treated as part of a broader due diligence process. In cross-border transactions, a company should understand who it is actually dealing with, what the business purpose of the payment is and whether the counterparty has the resources required to perform the service.

In practice, due diligence may include checking the counterparty’s registration data, analysing its country of residence and place of business, verifying the beneficial owner for selected payments and collecting documents confirming the performance of a service or delivery.

For payments to jurisdictions with an increased tax risk, an invoice alone may not be sufficient. The company should collect documents showing the economic rationale of the transaction. These may include agreements, correspondence, reports, work confirmations, project documentation or other materials appropriate for the type of service.

The absence of such documentation may increase the risk of a tax cost being challenged, a tax preference being denied or the settlement of a cross-border payment being questioned.

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Relevance for withholding tax, CIT and transfer pricing in Poland

The EU list of non-cooperative jurisdictions 2026 may be an important tax risk indicator in several areas. In practice, companies should take it into account especially when analysing withholding tax, corporate income tax and transfer pricing in Poland.

For withholding tax, payments such as dividends, interest, royalties and certain intangible services are particularly important. The company should verify who the beneficial owner of the payment is, whether a preferential tax rate or exemption can be applied and whether the required documents have been collected to support such treatment.

In the area of corporate income tax (CIT), the key issue may be whether an expense was incurred to generate revenue or to preserve or secure a source of revenue. For transactions with entities from higher-risk jurisdictions, it is particularly important to demonstrate that the payment has a real business rationale and corresponds to services actually performed.

For transfer pricing, transactions with related parties and structures involving several jurisdictions require careful analysis. The company should assess the functions performed by each entity, the risks assumed and whether the remuneration is consistent with the arm’s length principle.

In this area, comprehensive tax advisory in Poland may be useful, especially where cross-border payments, withholding tax, CIT obligations and documentation requirements need to be assessed together.

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What should companies do after the update?

The update should prompt companies to check whether they carry out transactions with entities located in jurisdictions included on the EU list, or with entities that may be economically connected with such jurisdictions.

As a first step, it is worth reviewing suppliers, customers, shareholders, subsidiaries and related parties. The next step should be to check foreign payments, their legal basis and documents confirming that the relevant services or supplies were actually performed.

Particular attention should be paid to transactions involving advisory, management, financial, licensing, marketing, intermediary or other intangible services. These are areas where Polish tax authorities often expect more detailed business and documentary justification.

In practice, companies should verify:

• the list of foreign counterparties,
• cross-border payments and their legal titles,
• documents confirming the actual performance of services,
• beneficial owner status for dividends, interest and royalties,
• the impact of transactions on transfer pricing obligations.

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Internal procedures and tax risk management

For companies conducting regular international business, a one-off counterparty check may not be sufficient. A better solution is to implement internal procedures that help identify higher-risk transactions on a systematic basis.

Such a procedure may specify when the counterparty’s jurisdiction should be checked, what documents must be collected before a payment is made, who is responsible for transaction approval and when an additional tax analysis is required.

This is particularly important in companies where payments, accounting, procurement and tax are handled by different departments. A lack of information flow may lead to a situation in which tax risk is identified only after an expense has been booked or a transfer has already been made.

For foreign companies operating in Poland, it is also important to properly align group-level compliance procedures with local Polish tax requirements. International compliance policies may not cover all obligations arising under Polish regulations. In such cases, support in accounting services in Poland and ongoing tax compliance may help reduce operational and tax risk.

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Importance for international business structures

For corporate groups, the update of the EU list may be relevant not only for current payments, but also for assessing the entire structure. This applies in particular where entities from jurisdictions considered non-cooperative for tax purposes appear in the ownership, financing or settlement chain.

In such cases, analysing the agreement alone may be insufficient. It may be necessary to review the functions performed by the entity, the risks assumed, the resources available and the real business rationale for its role in the structure.

Companies planning investments in Poland should consider this area already at the stage of designing their business model. This may include the ownership structure, financing method, intra-group settlement rules and royalty or service flows.

In this context, support with company registration in Poland may also be relevant if the planned activity requires tax assessment of the structure already at the market-entry stage.

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Key takeaway for businesses operating in Poland

The EU list of non-cooperative jurisdictions 2026 is an important tool for assessing tax risk in international transactions. The update of 17 February 2026 does not automatically prohibit cooperation with entities from listed jurisdictions, but it does require greater caution, stronger documentation and more detailed tax analysis.

For businesses, the most important issues are ongoing monitoring of changes, counterparty verification and consistency between agreements, financial flows and the actual economic nature of transactions. This is especially relevant for cross-border businesses, corporate groups and entities making regular foreign payments.

In practice, the update should lead to a review of counterparties, payments and internal procedures. This allows companies to identify risk areas earlier and reduce the likelihood of issues in tax settlements, inspections or audits.

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If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.

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