Panama: MLI to enter into force March 2021

Panama: MLI to enter into force March 2021

Panama has ratified the “Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting” (often referred to as the “Multilateral Instrument” or MLI). The MLI is a multilateral convention that will implement a number of tax treaty measures of the OECD’s base erosion and profit shifting (BEPS) action plan.


As noted in an OECD release, Panama’s instrument of ratification was deposited with the OECD on 5 November 2020. Thus, for Panama, the MLI will enter into force on 1 March 2021.

The measures in the MLI are expected to affect 17 income tax treaties in Panama’s network of tax treaties:

  • Barbados
  • Czech Republic
  • France
  • Ireland
  • Israel
  • Italy
  • Luxembourg
  • Mexico
  • The Netherlands
  • Portugal
  • Qatar
  • Singapore
  • South Korea
  • Spain
  • United Arab Emirates
  • United Kingdom
  • Vietnam

Read a November 2020 report (Spanish) prepared by the KPMG member firm in Panama

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