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.
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.
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