(MENAFN) The European Union is likely to exclude the UAE and South Korea from a blacklist of tax havens later this month.

Based on a "new commitment letters signed at high political level," the EU's Code of Conduct working group on business taxation has suggested moving both of the countries, in addition to Barbados, Grenada, Macau, Mongolia, Panama and Tunisia, from the list of non-cooperative jurisdictions for tax purposes to a grey list of countries that will be checked for compliance.

Last month, EU finance ministers agreed to "name and shame" 17 countries after months of screening and negotiations, increasing efforts to fight against opaque practices that facilitate avoidance by multinationals and individuals.

The UAE government said it was "surprised and disappointed" to be on the list, as it worked to meet the EU's requirements in terms of exchanging tax-related information and "committed to a reform process which will be finalized by October 2018," as undersecretary of finance said.

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