Panama’s tax authority (Dirección General de Ingresos, DGI) published Resolution 201-3777 of 7 June 2024 in the Official Gazette on 24 June 2024. This Resolution sets forth procedural guidelines for taxpayers to access the Mutual Agreement Procedure (MAP) detailed in double tax treaties between Panama and other nations.
This is Panama’s first legislation governing the MAP process, and it highlights the country’s dedication to implementing BEPS minimum standards.
The resolution specifies that MAP requests can be made for issues such as interpreting tax treaty principles, determining tax residency, withholding taxes at the source, assessing the existence of a permanent establishment, and the allocation of income to permanent establishments.
Under the Resolution, taxpayers must submit their MAP requests to the DGI’s Department of Tax Treaties. Upon receipt, the DGI is required to notify the other contracting state within one month. The DGI has an additional four months to review the documentation to decide if the matter can be resolved unilaterally or in collaboration with the other state.
The DGI must resolve the MAP case within 24 months from the date of receiving the request.
