Global Minimum Tax in Panama

October 19, 2023

Through the implementation of the Global Minimum Tax in Panama, the profits of subsidiaries belonging to multinational groups with global revenues exceeding €750 million will be taxed at an effective rate of 15%. 


The member countries of the Inclusive Framework of the Base Erosion and Profit Shifting Project, Panama among them, are analyzing the possible effects of the Global Minimum Tax. Generally, Multinational Groups have lower effective corporate tax rates in the countries due to the application of tax incentives.   

Conversely, when the result of the Effective Income Tax Rate in a certain jurisdiction is lower than 15%, the parent company will have to pay a Complementary Tax for the difference in its jurisdiction. 

Effects in Panama

In Panama, the implementation of the Global Minimum Tax requires firstly an evaluation of the data of the taxpayers subject to the application scope. In this regard, the data of the consolidated income boxes of the multinational groups of the “Transfer Pricing Report” and the Country-by-Country Report must be analyzed.  

Therefore, investment attraction policies should focus on other competitive advantages of the country and strengthen other sectors that are part of the growth strategy for the coming years.  

Source: Martes Financiero