Is Panama and the OECD: A New Fiscal Direction with a Future Vision?

In a decisive move toward fiscal modernization and transparency, Panama's government has officially expressed its interest in joining the Organization for Economic Co-operation and Development (OECD). The application was submitted during the 4th International Conference on Development Financing in Seville, Spain, an event where global experts and leaders emphasized the importance of adopting responsible fiscal practices. José Galindez, a tax advisory expert and partner at GMTaxAdvisors (www.gmtaxadvisors.com), highlights that “this move not only strengthens Panama’s position in the global economy but also opens doors to higher standards in tax policy and greater investment attraction.”

Panama facing possible new fiscal directions.

Supported by the Inter-American Development Bank (IDB), this step reflects a firm commitment to inclusive and sustainable economic growth. Joining the OECD will enable Panama to align with international best practices, improve its tax collection, and reduce tax evasion—which currently amounts to only 13.1% of GDP, well below regional and OECD averages.

The accession process will involve close cooperation with the OECD’s Committee on Fiscal Affairs (CFA), which will guide Panama through the implementation of global standards. Since joining the BEPS project in 2016, Panama has demonstrated its commitment to fiscal transparency by adopting essential measures to combat harmful tax practices and improve tax controls.

For Galindez, “joining the OECD doesn’t mean imposing a single model but adopting best practices, including digitalizing the tax administration and policies that promote investment and international trade.” Undoubtedly, this step positions Panama as a nation prepared to face the economic challenges of the 21st century.

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