Start of the Automatic Exchange of Financial Information with Panama from 2020

March 9, 2020
María Helena Padilla
Published in

A. Information Report

The Ministry of Economy and Finance, the General Revenues Directorate (DGI) of the Republic of Panama and the National Customs and Taxes Directorate -DIAN- of the Republic of Colombia announced on March 9, 2020 that the automatic financial information exchange agreement has been signed.

On that regard, Panama adhered since 2017 to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC), adopted in Colombia by means of Law 1661/2013, which allows exchanging tax information upon request between signatory jurisdictions.

To date, the authorities of both countries are working on finalizing the details of the implementation of reports and are exchanging information lists to enforce the automatic exchange starting in 2020.

B. What kind of information will be reported and what date is it expected to start?

Financial information will be reported. For that purpose, it will be done under the CRS Regulations Framework (Common Reporting Standard), according to the OECD which has as reference the Foreign Account Tax Compliance Act.

Reported information:

  • Of the Holder: Name, identification, date and place of birth with the country of residence.
  • Of the account or product: the number, balance at the end of the period, yields generated by the assets of the financial product, yields credited.

According to the report issued by both countries’ authorities, details of the Multilateral Competent Authorities Agreement for CRS -MCAA- are being finalized in such a way that the conditions for the automatic exchange of information between both countries are ensured before March to June 2020

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