The Government of Panama has initiated a consultation process with deputies from the National Assembly and private sector representatives to modify current tax legislation. The goal is to accelerate the country's removal from the list of non-cooperating jurisdictions and modernize its international tax system. This was announced by the Deputy Minister of Foreign Affairs, Carlos Hoyos Boyd, during the closing of the II International Tax Congress. The need to strengthen Panama's technical and regulatory capabilities to meet international standards was emphasized. Following high-level meetings in Brussels with the European Union's Taxation and Customs Union Directorate-General (DG TAXUD), the National Executive has outlined a clear roadmap to address international requirements. The government plan establishes three main axes: the reduction of public debt; the modernization of the tax system, incorporating the digital economy and e-commerce; and the consolidation of fiscal transparency through tax information exchange agreements, such as the recently signed one with Ecuador. Tax modernization must be comprehensive to increase revenue, attract legitimate investment, and position the country as a globally competitive financial center. Finally, the congress addressed other critical issues such as the challenges of the OECD's Pillars 1 and 2, source of income conflicts in the digital age, and the resolution of tax disputes. Experts agreed that the digital economy continues to strain traditional tax models, particularly in the valuation of intangibles and the application of multilateral rules. Tax specialist Ubaldo González stated that Panama's 20th-century tax model is no longer functional, citing the dilution of low taxes, the disappearance of corporate anonymity, and the mandatory automatic exchange of information. He urged Panama to define a new modern, transparent, and harmonized tax identity. To become a regional treaty hub, the expert noted that Panama needs a robust network of tax treaties, in contrast to the current 17 agreements. Pascal Saint-Amans delved into the central dilemma of digital taxation: where value is truly created, warning about the lack of multilateral consensus and the impact of geopolitical fragmentation.
