Panama Implements Stricter Multinational Firm Requirements to Meet EU Standards

Panama’s National Assembly approves new law

The National Assembly of Panama has approved a new law aimed at satisfying European Union tax transparency requirements. This move also supports Panama’s potential removal from EU monitoring lists.

Ministry of Economy and Finance statement

According to the Ministry of Economy and Finance, this legislation requires multinational entities based in Panama to demonstrate genuine local operations. Failure to do so will result in a 15% tax on passive foreign income.