Radar archive — February 2026
Ireland broadens its foreign-dividend participation exemption
For distributions made from 1 January 2026, Revenue's participation exemption for foreign dividends extends to certain non-treaty territories that levy withholding tax on cross-border distributions, and shortens the residency look-back from five years to three. The exemption continues to require a holding of at least 5% held for a minimum of 12 months.
Implications for capital — The wider geographic scope and shorter look-back increase the range of foreign subsidiaries whose dividends can be received by Irish holding companies free of corporation tax.
Source: Revenue
Denmark moves taxation of long-term power-hedging contracts to a realisation basis
A broad political agreement of 18 February 2026 changes the tax treatment of long-term price-hedging contracts, including power purchase agreements and contract-for-difference arrangements used in solar and offshore-wind projects. Companies will be taxed only on realised income and expenses rather than on annual mark-to-market (lagerprincippet) movements, removing a tax charge on unrealised value changes.
Implications for capital — The change aligns the timing of tax with actual cash flows on renewable-energy hedging positions, altering the tax profile of Danish energy and infrastructure investments.
Panama stays on the EU tax blacklist in the February 2026 review
In its update of 17 February 2026, the EU Council kept Panama on Annex I of the list of non-cooperative jurisdictions for tax purposes. The revision removed Fiji, Samoa and Trinidad and Tobago and added Viet Nam and the Turks and Caicos Islands, leaving a ten-jurisdiction Annex I that still includes Panama alongside Russia, Vanuatu and others.
Implications for capital — Continued Annex I listing keeps Panama-linked structures exposed to EU member states' defensive tax measures and enhanced scrutiny until the next scheduled revision in October 2026.
Kuwait enters the FATF grey list
Following its plenary of 11–13 February 2026, the FATF added Kuwait to its list of jurisdictions under increased monitoring — the 'grey list' — for strategic anti-money-laundering and counter-terrorist-financing deficiencies, alongside Papua New Guinea. Kuwait gave a high-level political commitment to work with the FATF and MENAFATF to remedy the identified weaknesses.
Implications for capital — Financial institutions transacting with Kuwaiti counterparties may apply enhanced due diligence for as long as the jurisdiction remains under increased monitoring.
Source: FATF
FATF advances standards on stablecoins and offshore crypto providers
The February 2026 plenary approved a report on the risks of offshore virtual-asset service providers exploiting gaps in regulatory coverage, and a targeted report on stablecoins and unhosted wallets, including peer-to-peer transfers. FATF confirmed fraud and virtual assets as multi-year priorities.
Implications for capital — Signals tighter international expectations on how offshore crypto activity and stablecoin transfers are supervised, shaping where compliant digital-asset custody and dealing can sit.
Source: FATF
FATF adds Kuwait and Papua New Guinea to its grey list
At its February 2026 plenary in Mexico City the FATF placed Kuwait and Papua New Guinea under increased monitoring, each having committed to an action plan to remedy identified AML/CFT deficiencies. The plenary also adopted mutual-evaluation reports for Austria, Italy and Singapore.
Implications for capital — Financial institutions apply enhanced due diligence to counterparties and flows connected to newly grey-listed jurisdictions, adding friction and cost to capital routed through them.
Source: FATF
Dutch actual-return box 3 bill clears the lower house
On 12 February 2026 the House of Representatives adopted the Wet werkelijk rendement box 3, which would tax the actual return on savings and investments rather than a notional yield. The Senate must still approve the bill; the new system is targeted to begin on 1 January 2028.
Implications for capital — A shift to actual-return taxation changes how Dutch-resident individuals and family holdings weigh income-generating versus growth assets held in box 3.
Poland's crypto market left without a national supervisor
In a February 2026 position statement, the KNF confirmed that Poland had not designated a competent authority to supervise the crypto-asset market under MiCA, meaning no CASP authorisations could be granted domestically. Providers that operated under the pre-30 December 2024 national regime could continue only within the transitional period, with MiCA requirements applying to them only from the date any authorisation is obtained.
Implications for capital — Crypto-asset firms could not obtain a Polish MiCA licence during this period, leaving Poland's positioning as a domicile for crypto businesses in limbo relative to other EU member states.
Malta drops the audit sign-off on the Annual Fund Return
The MFSA amended the Annual Fund Return, discontinuing the requirement for an auditor's confirmation and releasing Version 1.11 across retail schemes, AIFs, PIFs and NAIFs. It applies to submissions for the December 2025 reference period and to returns due from May 2026 onward.
Implications for capital — The change reduces the annual compliance cost and timeline for collective investment schemes in Malta without altering the underlying reporting obligation.