The Channel Islands, the Bahamas, Bahrain and the Cayman Islands are among the jurisdictions who have no corporate income tax.
"As the U.S. Virgin Islands continues to recover from the damage from the effects of Hurricanes Maria and Irma, we remain committed to attracting business and investment that will create increased economic activity and jobs", read the statement.
Virgin Islands and Saint Kitts and Nevis to the bloc's tax haven list and placed Anguilla, the British Virgin Islands, Dominica and Antigua and Barbuda to the so-called grey list of jurisdictions that don't adhere to anti-tax avoidance standards but promised to make change their ways.
Simultaneously, they moved Bahrain, the Marshall Islands and Saint Lucia from the blacklist to the grey watch list, after they committed to change their tax practices. There are now nine countries flagged there, while a separate "gray" list includes 62 jurisdictions that have committed to change their practices and cooperate with the EU. In addition to the three Caribbean islands listed on Tuesday, they are American Samoa, Guam, Namibia, Palau, Samoa and Trinidad and Tobago.More news: Trump eyes US$60 billion in tariffs on Chinese tech
The decision to clamp down on tax avoidance, first proposed by the European Commission in June 2017, was taken by EU economic and financial affairs ministers at their morning meeting in Brussels, according to a Commission press release.
The grey list includes dozens of jurisdictions from all over the world.
Blacklisted jurisdictions could face reputational damage and stricter controls on their financial transactions with the European Union, although no sanctions have been agreed by European Union states yet.
Earlier this month, European Union experts chose to propose the delisting of Bahrain, the Marshall Islands and Saint Lucia, a document dated March 2 showed, according to Reuters.More news: PM Trudeau visiting Hamilton, Ont. to show support for steel workers
"We call on all jurisdictions on the list to do likewise, and on all those that have already made commitments to implement them in a timely manner,"Â he added". These engagements remain secret.
The blacklist initially comprised 17 countries, but eight of those later came forward with promises to improve their tax regimes.
Once in force, tax intermediaries who provide their clients with complex cross-border financial schemes that could help avoid tax will be obliged to report these structures to their tax authorities.
European Union countries were not screened.More news: Rand Paul Says He Will Oppose Nominations of Pompeo, Haspel
Smaller EU members like Luxembourg and Malta have in the past opposed stricter rules to prevent tax avoidance, fearing they could harm competitiveness.