Quijano & Asociados was proud to sponsor the Executive Breakfast hosted by the British Chamber of Commerce Panama, bringing together business leaders, investors, and legal and tax professionals to discuss the implications of Law 526 of 2026, which introduces Panama’s new Economic Substance regime.

The panel featured Luis Ocando and Madelaine Chalhoub, from Deloitte Panama, and was moderated by José Ramón García de Paredes, partner at Quijano & Associates. The discussion provided valuable insights into the challenges and opportunities arising from this significant legislative development for multinational groups and companies operating through Panamanian structures.

The conversation explored the reasons behind the enactment of Law 526 and its alignment with evolving international tax transparency standards. Panelists also examined the entities that fall within the scope of the legislation, the available exclusions, and the treatment of foreign-source passive income within multinational groups.

The discussion further addressed the practical application of the economic substance requirements, including governance, human resources, operational presence, outsourcing arrangements, and what constitutes adequate economic substance in Panama. Reporting obligations, compliance requirements, and potential consequences of non-compliance were also examined.

The event concluded by emphasizing that Law 526 represents an important milestone in strengthening Panama’s transparency framework while reinforcing its position as a competitive and internationally recognized business center.

Our firm remains committed to providing strategic legal counsel that enables clients to successfully navigate regulatory change while identifying new opportunities for growth and investment.