LatinNews Daily - 12 October 2026

*The European Union has announced its decision to remove Panama from its list of non-cooperative jurisdictions for tax purposes, “recognising the tangible reforms undertaken by the Panamanian authorities to address the EU’s concerns on fair taxation”. The decision, which the EU described as “an important milestone”, has been hailed by Panama’s government led by President José Raúl Mulino for which Panama’s removal from such lists has been a priority since it took office in July 2024. In July 2025 the EU removed Panama from its list of countries with strategic deficiencies in their anti-money laundering (AML) and counter-terrorist financing (CFT) frameworks, which followed a similar decision taken in October 2023 by the Financial Action Task Force (FATF) of the Organisation for Economic Co-operation and Development (OECD). An EU statement highlights that its latest decision to remove Panama from the list of non-cooperative jurisdictions for tax purposes, which is updated twice a year, “reflects Panama’s sustained and constructive engagement with the EU, backed by concrete actions to bring its tax framework in line with international tax good governance standards”. These included the passing of a law on economic substance, which was approved in May this year and requires multinational entities domiciled in the country to demonstrate that they have physical operations in Panama or else face a 15% tax on passive foreign income. The EU statement cites Panama’s economy and finance minister, Felipe Chapman, as welcoming the decision, saying that it “reflects the constructive and sustained dialogue between Panama and the European Union, as well as the Government of Panama’s continued commitment to transparency and compliance with international standards”. A statement by Panama’s government said that the decision “represents an important step for Panama” and will help strengthen “international confidence, improve conditions to attract investment, boost economic activity, and encourage job creation”.

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