EU removes Panama from its list of tax havens
This decision comes after the Panamanian government implemented various measures related to the exchange of tax information.
Panamanian President José Raúl Mulino during a meeting with the European Union (E.U.)
The European Union (E.U.) announced this Friday that Panama is no longer on the list of tax havens after the country implemented various measures related to the exchange of tax information and reformed its exemption regime for foreign income.
In addition to Panama, the E.U. also reported the removal of Vietnam, while American Samoa, Anguilla, Guam, Palau, Russia, the Turks and Caicos Islands, the U.S. Virgin Islands, and Vanuatu. These are countries that "fail to comply with agreed international tax standards or did not fulfil their commitments on tax good governance within a specific timeframe."
"This update reflects a positive trend in compliance with international tax good governance standards," the E.U. said in a statement.
"Panama had been included in Annex I of the EU list since February 2020 but has now reformed its harmful foreign-source income exemption regime. It has also been granted a new review by the OECD Global Forum regarding its compliance with international standards on the exchange of tax information on request. The Council has therefore decided to move Panama to Annex II of the list pending that review," the E.U. added.
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