Panama exits EU gray list

The European Union (EU)  has removed  Panama from the “gray” list of non-cooperative jurisdictions in fiscal matters, and the bloc has ratified that country Panama complies with global standards of fiscal transparency and equity.

Welcoming the decision Ministry of Foreign Affairs said that the EU “included Panama in December 2017 in this discriminatory list, due to the lack of understanding of the country’s tax regimes.”

After technical and diplomatic efforts, in January 2018 the EU removed from Panama from this classification to an observation list “that recognized that the country was dedicated to complete the necessary legislative reforms to adapt the preferential regimes considered as harmful,” said the Ministry adding Panamanian He stressed that “in addition to pernicious tax regimes, the European Union evaluated the progress of Panama in terms of transparency and tax cooperation, assessing aspects such as the adoption of the mechanism of automatic exchange consistent with the Common Reporting Standard objectives, promoted by the Global Forum of the OECD (Organization for Economic Cooperation and Development)