Tax Information Exchange: Reportable Jurisdictions.

Executive Decree 122 of June 11, 2018, by means of which the list of jurisdictions identified as reportable is adopted. This Decree establishes the list of what are called "Reportable Jurisdictions" within the regulatory framework for the implementation of the exchange of information for tax purposes, creating obligations and appropriate supervision and compliance controls, under the conventions signed by the Republic of Panama and in full force.

Item 30 of Article 3 of Law 51 of October 27, 2016 provides that a reportable jurisdiction is one with which a convention exists and which is identified on the list that the Executive Branch will publish for such purposes.

In 2016, the Government of the Republic of Panama officially committed to the automatic exchange of financial information for tax purposes, in accordance with the Common Reporting Standard promoted by the Global Forum on Transparency and Exchange of Information for Tax Purposes.

Through the aforementioned Law 51 of 2016, the regulatory framework for the implementation of the exchange of information for tax purposes is established, and it is provided that Panamanian financial institutions subject to reporting are obliged to carry out due-diligence processes and to report to the competent authority the information gathered, in accordance with the provisions of that Law.

The Dirección General de Ingresos (DGI, the General Directorate of Revenue), on behalf of the Government of the Republic of Panama, signed the Multilateral Competent Authority Agreement to improve international tax compliance on the basis of a reciprocal automatic exchange, with legal support in the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

It not only adopts the list of reportable jurisdictions, but also establishes the supervision and compliance mechanisms necessary to ensure that financial institutions comply with their reporting obligations. This includes the implementation of due-diligence processes to identify reportable accounts and the transmission of information to the competent authority.

Executive Decree 122 of June 11, 2018 and Law 51 of 2016 represent significant steps in Panama's commitment to tax transparency and international cooperation. Through the adoption of the list of reportable jurisdictions and the implementation of the CRS, Panama aligns itself with global standards, strengthening its financial system and its international reputation in matters of tax compliance.

List of jurisdictions (2018)

The full list of reportable jurisdictions, organized by continent, can be consulted in the official text of Executive Decree 122 of 2018 linked below.

Related Content

• List of Reportable Jurisdictions, Executive Decree 122 of June 11, 2018. (Official Gazette 28546-B of June 13, 2018).
• Regulatory Framework for the Implementation of the Exchange of Information for Tax Purposes, Law 51 of October 27, 2016. (Official Gazette 28149-B of October 28, 2016).
• Regulation of Law 47 of October 24, 2016 and of Law 51 of October 27, 2016. Executive Decree 124 of May 12, 2017. (Official Gazette 28277-B of May 12, 2017).
• Convention on Mutual Administrative Assistance in Tax Matters. (see)

Relacionado: Tax information exchange: the Common Reporting Standard