New Laws on International Tax Fiscal Transparency
In order to comply with the Foreign Account Tax Compliance Act (FATCA) and facilitate the exchange of tax information, Panama enacted the following laws:
- Law 47 of October 24, 2016, which ratifies the Agreement between the Government of the Republic of Panama and the Government of the United States of America, to comply with international tax standards and to execute FATCA. The Ministry of Economy and Finance is empowered to carry out the exchange of information corresponding to the year 2014 and all subsequent years.
- Law 51 of October 27, 2016, which establishes the legal framework for the Exchange of tax information and other rules are enacted. The Ministry of Economy and Finance is empowered to request and carry out in situ inspections in private entities and financial institutions with the purpose of gathering all necessary information to comply with the exchange of tax information with foreign authorities, FATCA, and tax treaties.
By: Ana Cristina Alzamora