Panama’s National Assembly has ratified the country’s tax information exchange agreement with Ecuador, aiming to boost tax transparency, combat evasion, and strengthen international cooperation while improving Panama’s global reputation and access to external financing.
Panama’s National Assembly approved draft Law No. 439, ratifying the tax information exchange agreement (TIEA) with Ecuador on 14 January 2026.
Signed on 14 August 2025, the agreement seeks to enhance tax cooperation and transparency through automatic and on-demand information exchange, helping detect tax evasion, improve revenue collection, and ensure data confidentiality.
Its ratification supports Ecuador’s removal of Panama from its tax haven list, strengthens international tax standards, promotes financial system integrity, and improves Panama’s global reputation.
It also reinforces the country’s commitment to fiscal transparency, international cooperation, and better tax compliance, which can lower risk ratings and ease access to external financing for both the government and Panamanian businesses.
The agreement will take effect once the ratification instruments are exchanged.
