Countdown to U.S.-Panama Fiscal Information Exchange

In less than five days, Panama will officially commit to handing over tax information about U.S. citizens and businesses in Panama to the United States.

Some, including offshore corporations, lawyers and bankers in Panama are apprehensive, unclear of what the Central American country has to gain in this exchange.

Minister of Economy and Finance Alberto Vallarino, however, believes that coming off the Organization for Economic Cooperation and Development’s grey list of tax havens will attract major investment to Panama, including to the financial and tourism sectors. The Free Trade Agreement with the United States has also been stalled in Congress.

“We should be proud of what we’re doing and where we are headed,” the minister said.

In addendums to the agreement, Panama also agrees to identify holders of bearer shares, and the United States allows its citizens and businesses to deduct costs of attending conferences or conventions in Panama.

La Prensa reports.