The document was signed in Panama City on August 14, 2025, and is now officially in effect. The agreement allows both countries to help each other through the exchange of presumably relevant information for tax collection, tax debt recovery, and the investigation or prosecution of possible tax offenses. President José Raúl Mulino stamped his signature, making official Law 508 of February 12, 2026, with which Panama approves the agreement for the exchange of tax information with Ecuador. For Ecuador, the agreement mainly applies to the Income Tax and other taxes collected by the Central Government. This step comes after Ecuador removed Panama from its discriminatory list of tax havens, which led to the Panamanian government lifting all retaliatory measures it had imposed. A move that seeks to close ranks on fiscal matters and leave behind old frictions between the two countries. Information will be shared when there are doubts or investigations in tax matters. In the case of Panama, the scope covers all national taxes, leaving out municipal and other political subdivision taxes. This was formally established with Cabinet Decree No.
