Experts debate tax reform in Panama and transfer pricing challenges: contributions from José Luis Galíndez and Frida Medrano

Tax reform in Panama has become one of the most important and challenging issues for the country's business and economic sectors. This reform not only seeks to modernize the national tax system, but also to align it with international standards of transparency, fairness, and combating tax evasion. One of the most sensitive aspects of this reform is the regulation and control of transfer pricing, which directly impacts how multinational companies manage their operations within Panamanian territory.

5th Transfer Pricing Conference

Transfer pricing: a challenge for companies

Transfer pricing refers to the prices at which transactions are carried out between related companies within the same economic group, and determining these prices correctly is essential to ensure that profits are declared and taxed appropriately in each jurisdiction. In the current context, Panamanian tax authorities have strengthened their controls and documentation requirements for these mechanisms to prevent tax base erosion and ensure fair taxation.

This process requires companies to conduct detailed market studies and comparative analyses to justify the prices applied in their internal operations. The complexity and scope of these obligations represent a considerable challenge for companies, especially in a global regulatory environment that is moving toward greater controls, such as those promoted by the OECD and the BEPS (Base Erosion and Profit Shifting) project.

The expert approach of GMTax Advisors

In this scenario, specialized advice becomes indispensable. José Luis Galíndez and Frida Medrano, senior partners at GMTax Advisors, are at the forefront of helping companies in Panama face these challenges. With a solid track record in international tax consulting, both specialists have helped their clients implement transfer pricing policies that comply with regulations and optimize their tax structure within a framework of compliance and responsibility.

José Luis Galíndez

José Luis Galíndez emphasizes that “the key is to deeply understand the economic nature of each transaction and to back it up with robust documentation and appropriate market analysis techniques, which significantly reduces the risk of penalties or adjustments by the tax authorities.” His experience allows him to advise companies not only on current compliance, but also on anticipating regulatory changes and designing long-term strategies.

Frida Medrano

Frida Medrano complements this view by emphasizing that “the incorporation of cutting-edge technology for tax management, which allows for real-time analysis and systematization of information, is essential to maintaining competitiveness in an environment where tax controls are stricter and more dynamic.”

Impact of the reform on business competitiveness

Beyond compliance, Panama's tax reform and transfer pricing regulations also provide an opportunity for companies to review and optimize their business and tax management models, strengthening their transparency and sustainability. The application of best tax practices not only helps to avoid legal risks, but also improves relationships with regulatory bodies and boosts the confidence of investors and business partners.

GMTax Advisors, led by Galíndez and Medrano, offers a multidisciplinary approach that combines legal, financial, and technological expertise to provide comprehensive and customized solutions. This support is key for companies to successfully navigate the complexity of the reform and consolidate a solid and reliable tax position.

The tax reform in Panama, which focuses on transfer pricing regulation, marks a new chapter in the country's tax history, with important implications for all economic actors. Having the advice of recognized experts such as José Luis Galíndez and Frida Medrano of GMTax Advisors is a determining factor that can make the difference between facing penalties or taking advantage of opportunities for responsible and sustainable growth.

In an increasingly globalized and regulated environment, the right tax strategy is not only a legal requirement but also an essential competitive advantage.

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