FATCA and AEOI Reporting

The Panama Revenue Office announced the availability of an online reporting platform to be used by financial institutions required to provide information under FATCA and AEOI.  Reporting institutions should be registered with local tax authorities before submitting information. Registration procedures could be reviewed on the following link: https://dgiaeoi.mef.gob.pa/publicform/publicform.aspx

An official statement was recently issued extending the deadline for reporting under FATCA from August 31 to September 8^th. Under the first reporting year, Financial Institutions must provide information from years 2014, 2015 and 2016.  Not complying with legal registration and reporting obligations could result in the application of penalties, which may be up to USD$50,000.00, even if there are no reportable accounts; in which case the reporting institution must submit a statement indicating that there is nothing to report.

Annual reporting obligations are due between the months of June or July of the following year, depending on the type of company. Deposit institutions and insurance companies report in June, and custodian and investment companies in July.