It has been announced that as of October 2021, it is rectified that Panama remains on the list of non cooperative countries in tax matters, according to the EU Code of Conduct. The qualification is the result of the country refraining to accept the modifications required by that entity.
The Panamanian Ministry of Economy and Finances emphasized the mechanism they already implemented to avoid risks between two different tax systems and that the tax system is solid. Some of the mechanisms they have implemented are:
- Adhere to the Inclusive Framework of the BEPS (Base Erosion and Profit Shifting)
- Standards for the exchange of fiscal information, automatic and to requirement
- International Standards for the application of the Transfer Pricing norms.
- Compliance of the minimum BEPS standards
- Updating the Legislative regulations for special regimes in Panama
The code of Conduct requested from Panama, the technical and political commitment to change the necessary norms by the end of 2022. However, the Republic of Panama has considered that such changes require an exhaustive study that includes the impact it would have for the country.
