Panama intends the accession to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters
Last Friday, in a press release issued by the foreign ministry of Panama the Central American state expressed the interest to join the Multilateral Convention on Mutual Administrative Assistance in Tax Matters of the OECD as well as of the Council of Europe. Based on that convention, tax-relevant information can be exchanged with other states. However, Panama does not intend to sign the Multilateral Competent Authority Agreement (MCAA) which constitutes a basis of the Automatic Exchange of Financial Account Information (AEOI). Instead, Panama follows the bilateral approach. That is, Panama will conclude agreements with other jurisdictions taking part in the AEOI. The AEOI has already started for 55 of the 101 jurisdictions committed to the AEOI, the remaining 46 jurisdictions, including Panama, will collect tax-relevant data as from January 1, 2017. Panama will supply data concerning the year 2017 in 2018 . The time for non-tax compliant persons is running.