On 19 August 2026, the Honduras Tax Administration Service (SAR) and Panama’s Directorate General of Revenue (DGI) concluded the Third Meeting of the Bilateral Consultation Mechanism in Panama City. This high-level technical summit advanced the implementation of the 2023 Double Taxation Avoidance Agreement and the 2024 Administrative Assistance Protocol, focusing on cross-border information exchange, transfer pricing alignment, and joint audit methodologies. Delegations reviewed progress on automatic exchange of financial account information under the OECD Common Reporting Standard (CRS) and discussed harmonizing approaches to digital services taxation in line with OECD Pillar One developments. The meeting underscored both nations’ commitment to the Global Forum on Transparency and Exchange of Information for Tax Purposes peer review recommendations.
Key Takeaways
- Operationalized Information Exchange: Both tax authorities confirmed the technical readiness for spontaneous and on-request exchange of taxpayer data, with first datasets covering 2025 fiscal year scheduled for transfer by October 2026.
- Transfer Pricing Framework Alignment: A joint working group was established to develop compatible transfer pricing documentation requirements and advance pricing agreement (APA) procedures for multinational enterprises operating across both jurisdictions.
- Digital Economy Tax Coordination: The delegations agreed to coordinate positions on the OECD Inclusive Framework’s Amount B simplified approach for baseline marketing and distribution activities, aiming for a unified Central American stance.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement