The Republic of Panama has signed over 10 tax
information exchange agreements (TIEA) with countries such as
Canada, Finland, Denmark, the US, and Japan, eight of which are
in force. The majority of Panama's signed TIEAs contain an
exchange of information clause upon request.
Due to recent commitments undertaken by Panama as a
consequence of the international pressure that has been exerted
upon the country, Panama has signed and legally enacted a TIEA
with Japan, which contains an international standard automatic
exchange of information clause.
By virtue of this agreement, Panama implemented for the
first time the parameters of the common reporting standard
(CRS) developed by the OECD. Through this agreement, Panama
pledged to an automatic exchange of information on a bilateral
basis, complying with its international commitment to implement
such a standard in order to strengthen international tax
Panama has confirmed that the automatic exchange of
information with Japan will commence in 2018. Nevertheless, the
specific date is yet to be confirmed.
It is important to recognise that Panama has also enacted
law 51 of 2017 which establishes a legal framework for the
application of the exchange of information for tax purposes.
This law imposes certain obligations and controls appropriate
for the supervision of and compliance with the agreements that
Panama has executed and which are already in force.
Panama has also signed and legally enacted the Convention on
Mutual Administrative Assistance in Tax Matters (MAT). The
signing of this agreement has also been influenced by Panama's
efforts to strengthen the transparency on the financial and
legal services rendered in the country.
The MAT has established a legal platform that will permit
competent government authorities to sign and execute agreements
for the implementation of an automatic exchange of information.
In this respect, Panama has already confirmed the execution of
an agreement with the tax authorities of Mexico and Germany.
These automatic exchanges of information will commence in
The Panamanian tax authority also intends to negotiate and
sign agreements for the automatic exchange of information with
the competent authorities in Spain, Italy, Germany, Japan,
Norway, Canada, the UK and Switzerland.
||Anna C Valdés