Panama: Removed from EU list of Non-Cooperative Jurisdictions for Tax Purposes

The European Commission's taxation directorate says the Council removed Panama and Viet Nam from Annex I[3]. It adds that both were moved to Annex II pending an in-depth review by the Global Forum of their exchange of information frameworks.[3]According to EU Law Live, Annex I now comprises eight jurisdictions: American Samoa, Anguilla, Guam, Palau, Russia, the Turks and Caicos Islands, the US Virgin Islands and Vanuatu.[2]The EEAS says Panama's reforms included the passing of a law on economic substance and its implementing decree earlier this year.[1] It also states that now that Panama is removed from Annex I, such measures[1], meaning EU member states' defensive measures, will also be lifted.[1]The EEAS quotes Finance Minister Felipe Chapman as saying that "Our next step is the Global Forum's in-depth review on exchange of information on request."[1] According to the EEAS, Panama will be removed from Annex II once the results of the review confirm Panama as largely or fully compliant[1].Newsroom Panama reports that this was announced by President José Raúl Mulino[4]. The outlet quotes him as saying "we are opening the doors to new investments, gaining competitiveness, and creating real opportunities for Panamanians."[4]Earlier, Newsroom Panama quoted ministry official Yasmín González as saying: "Today we have a rating of partially compliant and the European Union requires a rating of fully compliant."[5]