Through the enactment of Law 51 of October 27, 2016, Panama officially undertook to implement the Common Reporting Standard ("CRS"). As a result of this law, Panamanian Reporting Financial Institutions ("RFIs") are required to carry out the detailed due diligence procedures of the CRS, aimed at determining whether a person holding a financial account is a tax resident in any foreign jurisdiction.
The CRS is the standard for the Automatic Exchange of Information ("AEOI") developed by the Organisation for Economic Co-operation and Development ("OECD") and refers to the regular exchange of financial information of accounts between participating jurisdictions for tax purposes. The purpose of the CRS is to detect and dissuade taxpayers from incurring tax evasion through the use of offshore bank accounts. The CRS requires RFIs (entities in participating jurisdictions that are a financial institution and that are not a non-reportable financial institution) to implement specific due diligence procedures to document and identify reportable accounts. Reportable accounts are those financial accounts maintained by reportable persons or by a passive non-financial entity with one or more reportable persons who exercise control.
Through Resolution No. 201-4037 of June 22, 2018, the General Directorate of Revenue (DGI, for its Spanish acronym) of the Ministry of Economy and Finance of Panama adopted the list of the 99 participating jurisdictions of the CRS for the AEOI, these being:
Anguilla, Antigua and Barbuda, Aruba, Bailiwick of Guernsey, Bailiwick of Jersey, Barbados, Belize, Bermuda, Canada, Commonwealth of Australia, Swiss Confederation, United Arab Emirates, State of Japan, State of Qatar, State of Israel, State of Kuwait , Independent State of Samoa, United Mexican States, Federation of Malaysia, Russian Federation, Federation of Saint Kitts and Nevis, Gibraltar, Grand Duchy of Luxembourg, Grenada, Greenland, Ireland, Isle of Man, Cayman Islands, Cook Islands, Faroe Islands , Turks and Caicos Islands, British Virgin Islands, Commonwealth of the Bahamas, Montserrat, Niue, New Zealand, Country of Curaçao, Principality of Andorra, Principality of Liechtenstein, Principality of Monaco, Hong Kong Special Administrative Region of the People's Republic of China, Special Administrative Region of Macao of the People's Republic of China, Kingdom of Saudi Arabia, Kingdom of Bahrain, Kingdom of Belgium, Kingdom of Denmark, Kingdom of Spain, Country Kingdom of Netherlands, Kingdom of Norway, Kingdom of Sweden, United Kingdom of Great Britain and Northern Ireland, Czech Republic, Republic of Bulgaria, Republic of Albania, Republic of Argentina, Republic of Austria, Republic of Chile, Republic of Cyprus, Republic of Colombia, Republic of Korea, Republic of Costa Rica, Republic of Estonia, Republic of Slovenia, Republic of Finland, Republic of Ghana, Republic of Indonesia, Republic of Iceland, Republic of India, Republic of the Marshall Islands, Republic of Seychelles , Republic of Latvia, Republic of Lithuania, Republic of Malta, Republic of Mauritius, Republic of Nauru, Republic of Poland, Republic of Singapore, Republic of South Africa, Republic of Turkey, Republic of Azerbaijan, Republic of Croatia, Slovak Republic, Federal Republic of Germany, Federal Republic of Nigeria, Federative Republic of Brazil, French Republic, Hellenic Republic, Islamic Republic of Pakistan, Italian Republic, Lebanese Republic, Eastern Republic of Uruguay, People's Republic of China, People's Republic of Hungary, Portuguese Republic, Romania, Saint Martin, Saint Vincent and the Grenadines, Saint Lucia, Serene Republic of San Marino.
In Panama, the report is applicable to those jurisdictions with which there is either a bilateral or multilateral agreement and is identified in the list of reportable jurisdictions published by the Executive Body each year. The reportable jurisdictions for the year 2018, under the provisions of Decree 122, of June 11, 2018, which entered into force on June 12, 2018 are:
Bailiwick of Guernsey, Commonwealth of Australia, United Mexican States, State of Japan, Ireland, Federation of Malaysia, Grand Duchy of Luxembourg, Ireland, Isle of Mann, New Zealand, Kingdom of Belgium, Kingdom of Denmark, Kingdom of Spain, Kingdom Netherlands, Kingdom of Norway, Kingdom of Sweden, United Kingdom of Great Britain and Northern Ireland, Republic of Argentina, Republic of Slovenia, Republic of Indonesia, Republic of India, Republic of Seychelles, Republic of Latvia, the Republic of Malta, the Republic of Poland, the Republic of Singapore, the Republic of Bulgaria, the Federal Republic of Germany, the French Republic, the Hellenic Republic, the Italian Republic, the Eastern Republic of Uruguay, and the Portuguese Republic.
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