In January 2026, Panama's Ministry of Economy and Finance (MEF) issued Circular MEF‑2026‑3564, aimed at moving towards Panama's removal from restrictive lists and strengthening compliance with international standards of transparency and cooperation.
This measure is part of the country's efforts to improve its regulatory standing and meet the commitments it has made to international bodies.
The Circular also sets up an inter-agency working committee made up of the Directorate General of Revenue, the Public Registry of Panama and the Superintendency of Non-Financial Entities.
Purpose
The MEF announces a process of involuntary dissolution of legal entities, with the aim of cleaning up the country's corporate registry and preventing the regional tax regime from being regarded as harmful.
The core problem is that a large proportion of companies are listed as “suspended” in the Public Registry, which prevents access to basic information about their owners and accounting records. This lack of transparency has led to the country failing to meet its obligations to international bodies.
The dissolution process will begin on 27 February 2026 and will be carried out in two stages, distinguishing entities according to the regime that applies to them.
Stage 1
This covers legal entities marked for dissolution for failing to pay the annual fee for more than 10 years (corresponding to the 2016 tax year), under article 318-A of the Tax Code.
At this stage, the Public Registry has been instructed to record the dissolution notation for 290,534 legal entities. The process begins with an initial batch of 180,883 legal entities approved to date. The competent authority has published a list with the names of the companies concerned.
Stage 2
This covers legal entities listed as “suspended” in the Public Registry of Panama, under article 318‑A of the Tax Code, as amended by Law 52 of 27 October 2016 and Law 254 of 11 November 2021.
The Circular also states that, as the process moves forward, further information will be published, including the lists of legal entities subject to dissolution in each round and stage.
Final remarks
Circular MEF‑2026‑3564 marks a turning point for Panama's corporate landscape. This clean-up is a strategic opportunity for companies to regularise their situation, strengthen their transparency and remain operational within a regulatory framework aligned with international standards.
The staged implementation allows each legal entity to review its status in advance and make informed decisions to avoid involuntary dissolution.
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