Panama and Japan sign agreement


The Panamanian Government and Japan sealed an agreement Thursday for the exchange of tax information.

During the visit of President Juan Carlos Varela to China last April, it was completed boost the signing of this bilateral agreement as a sign of commitment of Panama to transparency and international cooperation.

The country, repeatedly questioned this year on the transparent use of its financial system, tries to promote the automatic exchange of tax information with some countries.

With the signing of this agreement, Panama incorporates, for the first time, the parameters of the Common Reporting Standard (CRS), an instrument promoted by the Organisation for Economic Co-operation and Development (OECD).

However, the OECD has asked Panama to sign an agreement of automatic exchange of multilateral tax information, but so far the country maintains its position only be subscribed to bilateral, although the Panamanian vice president, Isabel de Saint Malo, has informed, on the contrary, that the possibility of acceding to that required by the body mechanism is studied.

In this sense, the agreement with Japan includes the automatic exchange of information on the basis of international standards, ‘uniting efforts to prevent international tax evasion and tax fraud’, highlights the Panamanian Foreign Ministry, which was represented at the time of signed by Deputy Foreign Minister Luis Miguel Hincapie.