PANAMA AND THE COMMON REPORTING STANDARD (CRS)

Panama is part of the Convention on Mutual Administrative Assistance in Tax Matters (hereinafter the "Convention") promoted by the OECD according to Law 5 enacted in 2017. The Convention aims to formalize tax exchange agreements. Panama shall respond specifically for the income tax and capital gain tax paid within its jurisdiction.

Because of the Convention, Panama shall provide the requesting States with "any information that is foreseeably relevant for the administration or application of its domestic legislation with respect to the taxes included in this Convention."

A Requested State can only provide that information that can be obtained in accordance with its own internal legislation or administrative practice.

The implementation of the Convention is carried out through a bilateral agreement between countries party to the Convention that will follow the model of OECD Multilateral Agreement between Competent Authorities for the Exchange of Country by Country Reports. Jurisdictions will automatically exchange the reports they have regarding the Multinational Group of Companies and should limit the use of report information to assess transfer-pricing, risks related to the erosion of the tax base, transfer of benefits and economic analysis.

By means of the Decree Law 122-2018, Panama issued the list of the 33 jurisdictions in where shall report as per the Convention.