May 16, 2018 Panama and Uruguay agree to first exchange of financial account information for 2017 The Panamanian and Uruguayan Government agreed to begin the first exchange of financial account information in tax matters for 2017 on May 7, 2018. Previously, the Uruguayan Executive Power declared (Decree No. 103/018, issued April 24, 2018) that Panama would be excluded from the list of countries, jurisdictions and regimes that have low or no taxation (LONT) for income tax purposes and the list of LONT countries for transfer pricing purposes if Panama complied with certain requirements.1 Panama met those requirements when it issued Resolution 002-2018 (Resolution), which excludes Uruguay from the list of jurisdictions that discriminate against Panama.2 In addition, on April 30, 2018, Panama formally notified the OECD Secretariat that Uruguay is an exchange partner under the Common Reporting Standard Multilateral Competent Authority Agreement. The Panamanian Vice-Chancellor of Foreign Affairs verbally notified the Uruguayan Government on May 7, 2018, that it had complied with the requirements in Decree No. 103/2018. In compliance with the provisions of Articles 2 and 3 of Decree No. 103/2018, Uruguayan Tax Authorities announced on May 8, 2018, that Panama will be removed from the lists of LONT countries as of May 7, 2018. ———————————————
——————————————— 1 See Tax Alert 2018-0949. 2 The Resolution also excludes Greece from the list of jurisdictions that discriminate against Panama. | |||||||||||||||||||||||||||
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