Archive for the ‘news’ Category

Panama’s President Juan Carlos Varela Signs Mutual Administrative Assistance Convention for Tax Matters into Law

Thursday, February 23rd, 2017

As a continuation of President Varela’s fight against tax evasion, the Government of Panama now allows for exchange of tax information on request with over 100 tax jurisdictions

22 FEBRUARY (Panama City) – President of Panama Juan Carlos Varela signed into law today the implementation of the Mutual Administrative Assistance Convention (MAC), which allows for sharing tax information multilaterally on request with the 107 jurisdictions that are part of the convention and provides a common legal basis for cooperation on tax matters. In implementing the MAC, Panama officially joins all countries from the G20 , BRIICS, OECD, and other major financial centers, as well as an increasing number of developing countries as members to the convention.

“The signature of the MAC into law today is one more step to modernizing and transforming Panama’s financial and services platform, as it establishes the framework for the implementation of international transparency and cooperation initiatives,” said Luis Miguel Hincapie, Deputy Minister of Foreign Affairs, who added, “Starting today, the 107 tax jurisdiction cosignatories to the MAC can request information from Panama without having to negotiate a bilateral treaty.”

Signing the new law is yet another milestone of the ambitious legislative package that President Varela’s administration has presented to Panama’s National Assembly to meet international expectations on financial transparency. In recent months, Panama also joined the Base Erosion and Profit Shifting Initiative of the OECD, and has actively participated in international forums that discuss tax matters.

International Congress on Controlled Environment Agriculture in Panama

Thursday, February 9th, 2017

Panama announces the 2nd International Conress on Controlled Environment Agriculture will take place from May 17 to 19, in Convention Center of the Hotel Eel Panama, located in Panama City.

For more information↓.

‘Panama Papers’ spurred global anti-corruption fight

Friday, January 6th, 2017

Seven months after the leak of 11.5 million documents from a law firm in an incident that has come to be known as the “Panama Papers”, the world is right to ask what has been done since to fight global tax evasion and promote financial transparency.

As president of Panama, and in particular through my interactions with the international community, it is clear that the affair shined a light into the dark corners of global finance and sparked a worldwide reform agenda. Despite the unfortunate name, The Panama Papers has been good for Panama as well as for the world.

Panama was well on the path of reform long before the scandal broke. I was only 21 months in office at the time and had already removed Panama from the international Financial Action Task Force’s “Gray List” in record time. But the crisis accelerated the pace of reform and it engaged the world in a collective effort.

Panama’s legal system was being abused by tax cheats from all over the world. The cost of tax evasion for those governments is approximately $200 billion a year. That means less infrastructure, fewer health benefits and poorer education for millions of citizens. This is even more dramatic in the developing world, where millions are deprived of water, sanitation and other basic necessities. The Panama Papers changed everything. From Canada, to the United Kingdom, Denmark, the European Union and Uganda, countries worldwide have intensified their investigations and prosecutions of tax evasion.

Switzerland announced in November that the government it is proposing a tax reform that could potentially abolish corporate tax arrangements that are not up to international standards. The European Council adopted resolutions to strengthen financial transparency and to achieve more effective cooperation between tax authorities. The Canadian Standing Committee on Finance met to give recommendations to Canada’s Revenue Agency to contribute to global efforts to fight tax evasion. The United Nations’ top expert on the promotion of a democratic and equitable international order has also called for action, urging the new Secretary General to convene a world conference on tax evasion.

Panama, too, has made huge progress in this fight. The world may have forgotten that over the course of only 25 years, Panama went from being ruled by military dictators and criminals to a functional, albeit young, democracy, with some blemishes in between, some of which we are still dealing with. From the beginning of my political career, ending corruption and promoting transparency have been among my top goals. In fact, as Panama’s foreign minister I signed numerous transparency treaties, including treaties of exchange of tax information with European and North American countries, and reactivated Panama’s participation in the Global Forum of the Organization for Economic Cooperation and Development (OECD). I was elected president on an anti-corruption platform.

I have continued to take steps to clean up our past, domestically and internationally, including negotiating further expansion of our financial and tax exchange agreements with countries such as the United States, Japan and Germany. We have also maintained dialogue with the OECD, and officially requested an invitation to join their Convention on Mutual Administrative Assistance on Tax Matters in November. Joining this mechanism will allow us to cooperate with more than 90 countries exchanging financial information upon request. At home, we are fighting corruption and holding those responsible accountable. By cleaning up corruption, my government has been able to invest in our infrastructure and our people, giving opportunity to millions and ensuring continued economic prosperity at home. Our economy is today among the fastest growing in Latin America, and confidence in our financial future is increasing. I recently concluded a $2.6 billion loan package with Japanese Prime Minister Shinzo Abe to expand our transportation system with a state-of-the-art monorail system

To be sure, more changes are needed. That is why I recently presented measures to our National Assembly that would strengthen legal and business registration systems and start adjusting our technological platform for when, in 2018, we start implementing bilateral automatic exchange of information by request. I have also just received the long-awaited findings of an independent blue-ribbon panel I commissioned to examine Panama’s legal and banking systems. I am proud to say that we are already well on our way to implementing many of their recommendations. The report is available to the public.

Our call for new multilateral approaches to fighting tax evasion has translated into real legislative projects that are passing through congresses around the world. And best of all, citizens have become heavily involved in holding their governments accountable on the decisions they make regarding tax law. International organizations and world leaders, including German Chancellor Angela Merkel, have praised Panama’s efforts at home and our role as a global catalyst for reform.

It is my hope that, one day, Panamanians will come to regard “The Panama Papers” as a badge of honor; a moment where we took the lead globally to address the exploitation of our country by unscrupulous tax cheats, returned transparency and accountability to our nation and to others, as well, and improved the prospects for social development worldwide by redirecting needed tax incomes to the critical investments our people deserve.

Changes to Financial Industry

Tuesday, December 13th, 2016

H.E. Luis Miguel Hincapié, Vice-Minister of Foreign Affaires of Panama, comments on changes to financial industry.

For more information↓.

Notification of Office Relocation

Friday, October 7th, 2016

Since October 10, 2016, The Embassy of Panama and The Consulate General of Panama in Tokyo have been relocated to following adress.

Samon Building ,
2-21-7,  Higashi Azabu
Minato-ku, Tokyo 106-0044

Consulate (1F)

Embassy (2F)

* 4min walk from Akabanebashi station (Oedo Line) Nakanobashi Exit

IMF Executive Board Concludes 2016 Article IV Consultation with Panama

Thursday, June 16th, 2016

On May 23, 2016, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation1 with Panama.

Panama has had the highest average growth in the region over the past decade and is expected to continue to have one of the strongest growth rates in Latin America, set against a backdrop of low inflation, a stable financial system, and a declining current account deficit. GDP grew by 5.8 percent in 2015, and growth is projected to remain around 6 percent in 2016 and over the medium term. The economy will be supported by the expected opening of the expanded canal and lower fuel prices, which will counterbalance the effects of slowing global growth and U.S. dollar appreciation. Over the medium term, the increase in canal transit, a dynamic service sector, and investments in the energy, mining, and logistics sectors should help maintain vibrant growth. Inflation is expected to remain subdued in 2016..

For more información, click here ↓

Panama Canal Expansion will be inaugurated on June 26, 2016.

Monday, June 6th, 2016

The Panama Canal Authority (ACP) announces that the Panama Canal Expansion will be officially inaugurated on Sunday, June 26, 2016.

For more información, click here ↓

Information About Panama Canal Expansion Inaugural Ceremony(English 2minutes)↓:

Always Thinking Big, Panama Launches Three New Infrastructure “Megaprojects”

Friday, May 27th, 2016

PANAMA CITY, PANAMA (May 26, 2016)– The Government of Panama announced today the commencement of three major new transportation and energy megaprojects with international investments and partnerships worth over $4 billion. The megaprojects include construction of Central America’s first natural gas based energy plant, Line 3 of Panama’s metro, and the fourth bridge over the Panama Canal. These projects continue a series of massive infrastructure initiatives successfully launched and completed by the Government of Panama as part of President Juan Carlos Varela’s 5-year development plan that has already secured investments of over $19 billion for transportation, housing, basic sanitation and water infrastructure projects.

For more información, click here ↓

President of Panama Announces Members of Independent Task Force on Financial Transparency

Tuesday, May 10th, 2016

Blue-ribbon committee created as part of President Varela’s ongoing reforms to strengthen financial transparency

Panama City (April 29, 2016) – As a continuation of reforms already instituted in Panama, President of the Republic of Panama, Juan Carlos Varela, officially announced at a ceremony in Panama City the members that will comprise a blue-ribbon independent task force on financial transparency, including Nobel Prize winning economist and former chief economist at the World Bank Joseph Stiglitz and former member of the Financial Action Task Force on Money Laundering Mark Pieth.

In addition to Stiglitz and Pieth, the independent task force will include:

· Nicolas Ardito Barletta, former President of Panama

· Roberto Artavia, former director of the Institute of Business Administration of Central America (INCAE)

· Alberto Aleman Zubieta, former manager of the Panama Canal

· Gisela Alvarez de Porras, former Minister of Trade and Industry of Panama

· Domingo Latorraca, expert on financial models, risk analysis and financial due diligence

At the announcement ceremony, President Varela spoke of Panama’s commitment to prevent tax evasion, including the many reforms implemented during the Administration’s 21 months in office, and announced the national and international experts that will participate in an evaluation of Panama’s current policies and practices as part of a blue-ribbon task force that will recommend measures to strengthen financial transparency not only in Panama but also around the world. The announcement follows an announcement by President Varela earlier this month to create the Task Force as part of Panama’s commitment to combat financial practices that deprive citizens of funds for education, infrastructure and health.

“The launch of this Task Force takes place in accordance with our duty as a nation to continue making progress on strengthening our transparency and our logistics and financial services sectors to prevent their abuse for illicit activities and for activities that do not further the common good,” President Varela said in his announcement.

President Varela also reiterated that Panama’s commitment to financial transparency began 21 months ago at the beginning of his administration and has resulted in numerous accomplishments including Panama’s removal from the FATFA “gray list” on money laundering and the country’s moving forward in the peer-review process of the OECD. He also stated that Panama would continue to work on bilateral agreements of automatic exchange of information.

“We are pleased that the world is finally paying attention to the global problem of tax evasion and money laundering, and we reiterate that Panama’s ongoing commitment to reform of our logistics and financial sectors from abuse by organized crime, terrorism and other dangers is stronger than ever,” President Varela said in his address.

For more información about the members, click here ↓


Friday, April 8th, 2016

Since the discovery of the Isthmus of Panama we have always been a meeting point of civilizations at the service of global trade and the world. Today we are the most stable and with greater growth economy in Latin America. We are the hub of the Americas, which facilitates communication and connectivity of the continent with the rest of the world. Panama is the regional headquarters of more than 100 transnational and we are a country where the law and the legal security, with an economy open to foreign investment and a government committed to transparency, accountability, the separation of powers and the strengthening of democratic institutions.

The massive filtration of documents on corporations of a Panamanian law firm with operations in different jurisdictions, has given rise to a controversy that shows a global problem.

Panama wants to make it very clear that this situation that has been badly named “The Panama Papers”, is not a problem of our country but also in many countries of the world, whose legal and financial structures are still vulnerable to be used for purposes that do not represent the common good of the citizens.

In 21 months of our administration of government, the Republic of Panama has taken decisive steps in favor of transparency and strengthening of our financial system and platform of services, which allowed us to: exit from the gray list of the Financial Action Task Force (FATF) in this year 2016 and move to Phase 2 of the peer review of the Global Forum, with which the international community has validated our legal framework to comply with international standards. In addition, beginning in January 2016 we attended the need to provide certainty as to the identification of the owners of the shares of corporations, as a demonstration of our firm commitment to transparency.

We recognize that we must continue to make progress in our State agenda of that we have set ourselves to shield our institutions, but we are not going to allow this media narrative to define us as a country. Earnest and responsible Governments do not negotiate the adoption of international obligations through the media but through diplomacy, through serious, responsible and constructive dialog.

I have asked Chancellor Isabel de Saint Malo, to contact the member countries of the Global Economic Forum and to reiterate to the Organization for Economic Cooperation and Development (OECD) our willingness to engage in dialog with respect to reach agreements that contribute to the economic development of our countries. And as is said in its own motto, our country and our government is also committed to the building of a stronger, cleaner and just world.

The Government of Panama, through our Ministry of Foreign Affairs will create an independent committee of national and international experts of recognized experience, to evaluate our practices and propose the adoption of measures which will be shared with other countries of the world, to strengthen the transparency of the financial and legal systems. We will not only work internally but also lead an effort for the benefit of the rest of the world.

I want make it clear that Panama will continue to cooperate with other jurisdictions as we have been doing both in judicial matters to prosecute offenses that are outlawed in our Criminal Code as well as in terms of the exchange of information to comply with the international treaties ratified by the Republic of Panama.

We reaffirm our commitment as responsible country, respectful of international law and cooperative with the efforts of the international community in search for solutions to this global problem. At this time we ask all countries to make use of all diplomatic channels and maintain mutual respect.

To the Panamanian people, I ask that we continue to work together to strengthen our country and to defend the highest interests of our nation.

Many thanks