• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 4/25/2013

Panama - Multinational entities’ investments eligible for tax stability agreement 

April 25: Panama’s tax authorities have established procedures by which certain multinational entities may achieve tax certainty with respect to their investments.

An April 2013 decree provides that companies operating under the multinational headquarters regime (regimen de Sede de Empresas Multinacionales) may be eligible for a “tax stability” agreement for certain investments (estabilidad juridical a las inversions).

Decreto de Gabinete No. 9 (published 10 April 2013) provide the procedures for a “tax stability” agreement (in general, under a stability agreement, a tax position will not be challenged by the tax authorities).

Eligible companies have a six-month period from the effective date of the decree to apply for a tax stability agreement.

Read an April 2013 report (Spanish) [PDF 205 KB] prepared by the KPMG member firm in Panama: Se incluyen las actividades efectuadas por las empresas de Sede de Empresas Multinacionales al régimen de estabilidad jurídica.

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