President José Raúl Mulino signed this Friday Law 508 of February 12, 2026, “By which the Agreement between the Government of the Republic of Panama and the Government of the Republic of Ecuador for the Exchange of Information in Tax Matters, made in the city of Panama, on August 14, 2025,” is approved.
This paved the way for the National Assembly of Panama to approve the tax agreement through Law 508, which now comes into force with the sanction of the head of state. The agreement was signed on August 14, 2025, after Ecuador excluded Panama from its discriminatory list of tax havens.
Under this scenario, the retaliatory measures that Panama had established against Ecuador due to this list were completely repealed with Cabinet Decree No. 39-25 of December 16, 2025. In the case of Panama, it includes all national taxes (except municipal taxes and other political subdivisions). For Ecuador, the agreement applies to Income Tax and other taxes whose collection corresponds to the Central Government.
This agreement establishes that the authorities of both nations will provide assistance to each other through the exchange of information presumably relevant for the administration and application of their domestic law, relating to the collection of taxes, the collection and enforcement of tax claims, or the investigation or prosecution of cases in tax matters.
