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08 January 2018

Panama modifies deadlines for FATCA and CRS purposes

Panama has issued Decree 461, which amends reporting deadlines for financial institutions and cutoff dates to determine account balances for Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) purposes.

Background

On 12 May 2017, Panama issued Executive Decree 124 of 2017, which contained provisions for the automatic exchange of information under FATCA and CRS.1

Decree 124 of 2017 established reporting deadlines, cutoff dates to determine an account balance for due diligence purposes and other provisions regarding the identification of a reportable person by reporting financial institutions.

Decree 461 of 2017

Decree 461 of 2017 establishes the following modifications:

  • For a preexisting individual account to qualify as a high value account or lower value account, the financial account balance must be determined on 30 June 2017.
  • Reporting financial institutions must report the information for each reportable account by 31 July of each year at the latest.
  • The reporting deadline for high value accounts that are identified as reportable accounts from 1 January 2018 to 30 June 2018, is 31 July 2018.
  • The reporting deadline for preexisting lower value accounts and entity preexisting accounts that are identified as reportable accounts from 1 January 2019 to 30 June 2019, is 31 July 2019.
  • Entities that qualify as reporting financial institutions in a given year, and reporting financial institutions that no longer qualify as reporting financial institutions in a year, must notify the Panamanian Tax Authority of said status in the FATCA and Automatic Exchange of Information Portal of the Tax Authority.
  • The requirements for submitting inquiries to the tax authorities on the interpretation of the provisions under Law 51 of 2016, Law 47 of 2016 and any subsequent regulations issued regarding CRS and FATCA are included; the tax authorities will respond to such inquiries within 30 days.

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ENDNOTE

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young Limited Corp., Panama City

  • Luis Eduardo Ocando
    luis.ocando@pa.ey.com
  • Isabel Chiri
    isabel.chiri@pa.ey.com

Ernst & Young, S.A., San José

  • Rafael Sayagues
    rafael.sayagues@ey.com

Ernst & Young LLP, Latin American Business Center, New York

  • Ana Mingramm
    ana.mingramm@ey.com
  • Enrique Perez Grovas
    enrique.perezgrovas@ey.com
  • Pablo Wejcman
    pablo.wejcman@ey.com

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

  • Jose Padilla
    jpadilla@uk.ey.com

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ATTACHMENT

PDF version of this Tax Alert

Document ID: 2018-5102

 
 

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