Panama Could Collect up to $256 Million Annually by Applying the Tax to Multinational Groups

Panama faces a shortfall in its tax collection target, with tax revenues 7% below expectations. In addition, the country has one of the lowest collection rates in the region, representing just 13% of gross domestic product (GDP), compared to a regional average of over 16%. Given this scenario, it is urgent to find new sources of income.  All of this has raised concerns about the possible application of the international regulations on the global minimum tax, also known as the tax on multinationals. Experts in international taxation participated in the first international taxation conference in Panama City, where they agreed that the country has the opportunity to adapt its regulations to international regulations such as the application of the so-called Global Minimum Tax, in which a rate of 15% is applied to multinational companies.