Subscribe to our Newsletter to receive the latest updates on our content. By tapping the “Subscribe” button you will be redirected to subscription page. Subscription is free.
Panama has cut the ownership threshold for identifying “controlling persons” under the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) international reporting rules from 25% down to 10%.
Under Executive Decree No. 25 (29 June 2026), any individual who directly or indirectly owns or controls at least 10% of a Panamanian company, trust, or private interest foundation may now need to be reported to foreign tax authorities.
3 September 26
Other Insights:
The decree also introduces more detailed criteria for identifying controlling persons by other means, which is especially relevant for trusts and foundations.
Impact of the Decree
Why this matters
The net is now cast wider. Individuals who fell below the old 25% threshold and were never flagged may now be reportable. This applies to companies, trusts, and foundations alike.
What to do now
If you hold interests in Panamanian entities, trusts, or foundations, this is the moment to revisit your ownership records and FATCA/CRS documentation against the new 10% threshold, before a reporting gap becomes someone else’s discovery.
Should you have any questions on this legal alert, please do not hesitate to contact Devvrat Periwal or Charlotte Cairns.