Bill 636, which amends Law 76 of 2019 — the Tax Procedure Code of the Republic of Panama — is in its second debate before the Economy and Finance Commission.

One of its provisions requires the Ministry of Economy and Finance to guarantee public access to information on tax incentives, classified by sector, regime, and the year in which the incentive was granted. The disclosure would include the number of companies benefiting from each regime, total tax expenditure by category, and jobs generated.

The systematic publication of tax expenditure is a practice that international financial institutions associate with better evaluation of the cost and return of incentives. For analysts and taxpayers, it would provide a more comparable basis for assessing which regimes generate employment and investment.

The bill continues its legislative process and may be adjusted in debate. Nexo Capital will follow its progress and any eventual regulation of the transparency mechanisms.