What is Common Reporting Standard (CRS)
CRS, by its English abbreviation, Common Reporting Standard, is the standard for the automatic exchange of financial account information regarding taxes, issued by the OECD. On October 27, 2016, the Republic of Panama established the regulatory framework for the implementation of the Exchange of information for tax purposes and dictated another provision; Later, it was issued “Executive Decree No. 124” of May 12, 2017, whereby are regulated Law 47 of October 24, 2016, and Law 51 of October 27, 2016. In December of 2017, emerges “Executive Decree No. 461”, which modifies some articles of “Executive Decree No. 124, of 2017”, to the end of improving the exchange of tax information. In January of 2018, the Government of the Republic of Panama signs the Multilateral Agreement between Competent Authorities to facilitate the automatic exchange of information of financial accounts.

What is the objective of CRS?
Its objective is to prevent tax evasion and to maintain the integrity of fiscal systems through a process of cooperation between the Participating Jurisdictions.

What is fiscal residence?
It is the country wherein a person or entity have their fiscal obligations, for tax payment purposes.

What is the importance of completing the Fiscal Residence Self-Certification?
The purpose of the Self-Certification Form is to confirm your condition under the CRS normative. By this Form it may be determined if your fiscal residence applies as reportable jurisdiction by virtue of the provisions set forth in Law 51, of October 27, of 2016.

Does the CRS Form have expiry date?
The form has no expiry date, but it will cease being valid at the time of occurring changes of circumstances affecting the status of the holder of the account, mainly with respect to his fiscal obligations.

Please inform the Bank within 30 days after occurring a change of circumstances in your data that includes the modification or update involving a change of status in your fiscal residence.

With what countries has Panama entered into Agreements of Exchange of fiscal information?
In being this information the one that changes every year, we suggest you to visit the page of the Directorate General of Revenues of the Ministry of Economy and Finance of Panama, https://dgi.mef.gob.pa/Internacional/CRS.php

Where can I find more information on CRS?
For more information with respect to how to define your fiscal residence status or any other definition, we suggest you to visit the web site of OECD in the following link: http://www.oecd.org/tax/exchange-of-tax-information or to contact your tax advisor.