THE EU is contemplating removal of names of UAE and seven other tax jurisdictions from the blacklist of tax havens. The change of mind comes just a few weeks after the EU announced an original blacklist of 17 non-EU countries, which drew furious reaction from several of those targeted. UAE is expected to be taken off the blacklist once it complies with the Base Erosion and Profit Shifting (BEPS) Minimum Standards, a rule that seeks to limit shifting of profits to jurisdictions where there is low or no taxes.

The UAE expressed surprise and disappointment at its inclusion among 17 countries designated by the EU as alleged non-compliant global tax jurisdictions. The Government said it was committed to maintaining the highest standards of financial oversight and tax regulations and expected to be removed from the list after the implementation of outstanding measures this year.

Panama, Tunisia, Mongolia, Macau, Grenada and Barbados will also be removed from the list. The official said the countries removed from the list now move to the EU's so-called "grey list", jurisdictions that have made unspecified commitments to the EU on reforming their tax laws.