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January 5, 2018
2018-0035

Panama modifies deadlines for FATCA and CRS purposes

Taxpayers should review the new deadlines to ensure they are in compliance.

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

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 June 30, 2017.

— Reporting financial institutions must report the information for each reportable account by July 31 of each year at the latest.

— The reporting deadline for high value accounts that are identified as reportable accounts from January 1, 2018 to June 30, 2018, is July 31, 2018.

— The reporting deadline for preexisting lower value accounts and entity preexisting accounts that are identified as reportable accounts from January 1, 2019 to June 30, 2019, is July 31, 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 (AEOI) 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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Contact Information
For additional information concerning this Alert, please contact:
 
Ernst & Young Panama
• Rafael Sayagués+506 2208 9880;
• Luis Ocando+507 208 0144;
• Isabel Chiri+506 208 0112;
Latin American Business Center, New York
• Ana Mingramm(212) 773-9190;
• Enrique Perez Grovas(212) 773-1594;
• Pablo Wejcman(212) 773-5129;
Latin American Business Center, Europe
• Jose Padilla+44 20 7760 9253;
 

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