Economic Substance Law Panama: Requirements and Scope

The Economic Substance Law introduced by Law 526 of May 28, 2026, represents one of the most significant changes in Panama’s tax regime in recent years. This regulation introduces economic substance requirements applicable to certain foreign-source passive income and seeks to align Panamanian legislation with international tax standards. 1. Scope of the Law Article 707-A establishes that these provisions apply to entities incorporated or domiciled in Panama (corporations or foundations) that: • Form part of a multinational group, and • Earn foreign-source passive income. Accordingly, the Law does not have general application but is limited to structures with international presence and the generation of passive...

27 August

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Panama Canal Neutrality Amid USA–China Rivalry

Posted by Enrique Cajiga

in Blogs, news

The Panama Canal neutrality is one of the cornerstones of international maritime law and global trade. As tensions rise between the United States and China, this small yet vital waterway once again finds itself at the center of geopolitics. Why Is the Panama Canal Neutral? The neutrality of the Canal is guaranteed under the 1977 Torrijos–Carter Treaties, which established that the Panama Canal would remain permanently neutral, open, and safe for all nations, regardless of political or military conflict. This principle ensures that global shipping routes remain stable and predictable. The Canal’s Strategic Importance The Panama Canal handles around 5% of global maritime trade,...