Base Erosion Profit Shifting – BEPS

Panama became a member of the inclusive framework on Base Erosion Profit Shifting (BEPS) on October 31, 2016. In joining this framework, member countries, in coordination with the OECD Committee on Fiscal Affairs (CFA), will confront tax avoidance and improve the coherence of international tax rules on an equal footing, through the development, review, implementation and monitoring of agreed minimum standards in respect of BEPS related issues. All members of the inclusive framework participate in all the meeting of the CFA and its working groups that relate to BEPS.

Minimum standards agreed to be initially implemented by associated countries relate to the following:

• Model provisions to prevent treaty abuse in inappropriate circumstances;