Panama City, Panama – April 25, 2026. The administration of President José Raúl Mulino has formally signaled its intent to join the OECD. The first step was signing a Memorandum of Understanding for technical collaboration on data exchange and policy evaluation. But the path to full membership remains long and contentious.
Becoming a member of the Organisation for Economic Co-operation and Development has taken other nations between six and twenty years. Colombia’s journey serves as a recent example of the lengthy process. At the Annual Conference of Business Executives, known as CADE, a panel of experts debated the potential benefits against the serious risks.
Panelists included Amauri Castillo, former Superintendent of Banks, and Dulcidio De La Guardia, former Minister of Economy and Finance. Lawyers Adolfo Linares and Hellen Seixas also joined the discussion, alongside David Saied, director at PricewaterhouseCoopers. The central question revolved around whether Panama must abandon its Territorial tax system in favor of a worldwide income model.
Experts Clash Over Tax System Requirements
Hellen Seixas, a lawyer with KPMG, directly challenged a common assumption. She argued it is false that the OECD demands Panama eliminate its territorial fiscal system. Seixas stated that requiring “greater levels of substance” does not automatically mean taxing foreign-source income. This clarification, she said, could allow Panama to “leave the European Union’s list of non-cooperative countries almost immediately or in the short term.” [Translated from Spanish]
“This represents an opportunity for Panama. It would strengthen the economy by demanding greater physical presence and real functions in the country, such as hiring more personnel and making effective decisions here.” [Translated from Spanish] – Hellen Seixas, KPMG lawyer
Dulcidio De La Guardia offered a stark warning about the financial burden. He pointed out that the Government of Panama has not presented evidence of the true costs. “The government has not presented that evidence to the country,” he said. [Translated from Spanish] He insisted on a feasibility study before any final decision.
“The costs must be assumed first. The OECD will not allow you to be a member of the club until you have complied with all the regulatory changes,” De La Guardia warned. [Translated from Spanish] He referenced the long adjustment periods experienced by Costa Rica and Colombia. He acknowledged there are benefits but stressed the government must “present the country with a serious study.” [Translated from Spanish]
Defending Sovereignty and Seeking a Middle Ground
Adolfo Linares took a more critical stance against international bodies. He insisted Panama does not have special regimes but a legitimate territorial system. “Europe wants to impose standards and fiscal policies that do not fit the reality of countries like Panama,” Linares said. [Translated from Spanish] He argued Panama must defend its fiscal sovereignty and find “a relationship between equals, not as if we were still vassals of the Europeans.” [Translated from Spanish]
David Saied from PricewaterhouseCoopers offered a more pragmatic view. He agreed the adoption of OECD norms will be difficult. However, he suggested that digitalization and new technologies can reduce transaction costs. Saied believes Panama can “reach a middle ground” where it does not lose competitiveness but gains new business avenues.
The panelists agreed that the debate over this process will extend beyond the current administration. Amauri Castillo noted the issue will transcend to the next government. “Certainly there is no magic recipe. I would even dare to say that we should not think joining the OECD is the solution to all problems,” Castillo stated. [Translated from Spanish] The panel concluded that the business association APEDE could lead a cost-benefit study if the government does not. The discussion remains open with no clear consensus in sight.