In order to update the Intergovernmental Agreement for the Effectiveness of the Tax Compliance Law on Foreign Accounts, signed by both parties in 2013, the governments of both countries signed a complementary agreement to FATCA.
According to the Ministry of Finance of Costa Rica, with the subscription of the complementary agreement, the legal basis of the FATCA (Foreign Account Tax Compliance Act) will be updated with the provisions of the Agreement with the Government of the United States of America for the exchange of information on tax matters, which will enter into force next September.
The Agreement with the Republic of Italy for the exchange of information on tax matters entered into force on June 17th.
The signing of this bilateral agreement took place in May 2016 and establishes the provisions through which the exchange of tax information between both jurisdictions will be regulated, while seeking to strengthen the international fight against tax evasion.
In addition to the agreement that will allow the exchange of financial and tax information, both countries decided to remove each of them from the lists of nations that do not promote transparency.
From a statement issued by the Ministry of Economy and Finance in Panama:
May 7, 2018.Undersecretary Pablo Ferreri received the vice chancellor of Panama, Luis Miguel Hincapié, and a delegation from his Tax Administration department, on the occasion of the recent agreement reached between the two countries with the objective of initiating exchange of information on tax matters, with an exchange of financial accounts for 2017.(05-05-2018)
Since 1999 Costa Rica has been included in the list of nations considered tax havens by the South American country.
From a statement issued by the Ministry of Finance:
COSTA RICA TAKEN OFF BRAZIL'S LIST OF TAX HAVENS
The Federal Revenue Secretariat of Brazil (Receita Federal do Brasil or RFB) has removed Costa Rica from the list of countries with favored taxation, known as tax havens.
The Panamanian government has announced that the accession to the Multilateral Agreement between Competent Authorities will expand the network of countries with which financial information will be automatically exchanged as of 2018.
From a statement issued by the Ministry of Foreign Affairs:
December 15, 2017.The Republic of Panama will adhere to the Multilateral Competent Authority Agreement (MCAA), which will expand its network of agreements for the automatic exchange of information in an effective and economic manner for the country.
Starting from 2018, authorities in both countries will be able to exchange information on financial accounts corresponding to 2017 for tax purposes.
From a statement issued by the Ministry of Economy and Finance in Guatemala:
Panama and Mexico today signed in Mexico City an Agreement between the Relevant Authorities for the exchange of financial information for tax purposes.
From 2018 an agreement will be in effect on the exchange of financial and tax information of accounts of Argentines in Panama and of Panamanians in the South American country.
From a statement issued by the Federal Public Revenue Administration of Argentina:
Starting next year bank account information will be accessible
Although Airbnb offered to collect the sales tax for transactions made in Costa Rica through its platform, the Treasury is evaluating asking the US for information on the hosts.
The Directorate General for Taxation will try to exhaust all routes first with the company Airbnb, but as a second alternative, it has announced that if it does not reach an agreement with Airbnb, it could request information on the hosts, making use of international agreements for exchange of information with other governments, such as as the US.
The government is warning that if the agreement on Mutual Administrative Assistance in Tax Matters is not ratified, the country is at risk of being included in the lists of non-cooperating countries.
The Guatemalan Ministry of Finance describes as "indispensable" the ratification by legislative of the Convention on Mutual Administrative Assistance in Tax Matters adopted by the Council of Europe and member countries of the Organization for Economic Co-operation and Development (OECD)
The Convention on Mutual Tax Assistance approved by the Assembly increases, from 30 to 107, the number of partner jurisdictions or nations with whom Panama can exchange information.
From a statement issued by the Ministry of Economy and Finance:
With Panama's accession to the Convention on Mutual Administrative Assistance in Tax Matters (MAC), the country has increased the number of partner jurisdictions or nations with which it can perform an exchange of information from 30 to 107.This measures reiterates the commitment to international standards of fiscal transparency, which is essential for protecting the integrity of the country as a service center.
With the approval from the Assembly of Vietnam and Japan, the list of countries with which Panama will exchange tax information is now longer.
From a statement issued by the National Assembly of Panama:
In order to prevent tax evasion, approval was given by the plenary of the National Assembly, in a third debate, to two international conventions that aim to prevent this crime.
On January 1st the decree signed by the French government in April 2016 to include Panama in the list of countries considered to be tax havens came into force.
According to the French government the scope of the agreement signed in October by Panama for the automatic exchange of bilateral tax information with OECD countries, was not clear and the decree signed in April, which included Panama on the list from January of this year, was not repealed.
In the view of the French government it is not clear what the scope is of the agreement recently signed by Panama for bilateral automatic exchange of tax information with OECD countries.
Theagreement signed in late Octoberby Panama does not seem to be enough for France, which has decided to keep the Central American country on its list of countries considered as tax havens.