Arguing that the country did not implement the reforms to which it had committed itself within the agreed time frame, the European Union decided to include it again in its list of non-cooperating territories in fiscal matters.
The Central American country was excluded from Russia's list of nations that do not exchange information for tax purposes, on which it had been on since 2016.
The confirmation announcement was made by Russian Deputy Foreign Minister Sergei Riabkov during the presentation of the credentials of Panama's new ambassador to the Russian Federation, Efrain Villarreal, reported the Panamanian Foreign Ministry.
The French government reported that it removed Guatemala from the list of countries that do not cooperate with the exchange of fiscal information, but kept Panama.
The European country's authorities reported that Guatemala was removed from the list because it ratified the convention on mutual administrative assistance in tax matters of the Council of Europe and the Organization for Economic Cooperation and Development (OECD).
An agreement was signed to create a working group on fiscal and financial transparency cooperation, with the aim of removing Panama from the French list of non-cooperating countries in tax matters.
The Ministry of Economy and Finance of Panama reported that the working group will contribute to strengthening cooperation, improving the exchange of fiscal information, promoting financial transparency and the fight against money laundering, focusing on finding more efficient mechanisms and practices for the exchange of information for fiscal purposes, within the framework of the provisions of the tax agreements in force between the parties, including all aspects of the process, from the preparation and sending, to the receipt and response of requests for exchange of information.
Arguing that the country "fulfils all its commitments in terms of fiscal cooperation", the European Union decided to remove it from its list of nations and territories considered as non-cooperative.
Albania, Costa Rica, Mauritius, Serbia and Switzerland have implemented, ahead of schedule, all the reforms necessary to comply with the principles of good tax governance of the European Union (EU).
Since April 21, the agreement that avoids double taxation and mitigates its effects has been in force, as well as helping to eliminate barriers to trade and prevent tax evasion.
On March 21, Law 9644 was published in La Gaceta, corresponding to the agreement between the Republic of Costa Rica and the United Mexican States, which avoids the double taxation of income and wealth taxes.
With the new agreement published in the official newspaper La Gaceta, double taxation is avoided and its effects mitigated, as well as helping to eliminate barriers to trade and prevent tax evasion.
On March 21, Law 9644 was published in La Gaceta, corresponding to the agreement between the Republic of Costa Rica and the United Mexican States, which avoids the double taxation of income and wealth taxes.
In the new version of the European Union's list of non-cooperating countries in fiscal matters, the Central American country no longer appears.
In December 2017, Panama was included by the Council of Ministers of Economy and Finance of the European Union in Annex II of the List of non-cooperative jurisdictions in fiscal matters.
The government has signed a multilateral agreement that allows modification to the network of treaties to avoid double taxation.
From a statement issued by the Ministry of Economy and Finance:
The Government of Panama, represented by the Ambassador of Panama in France, José Fábrega, signed on January 24, the Multilateral Agreement to adopt measures to prevent the erosion of the tax base and the transfer of benefits that affect tax agreements (MLI), at a ceremony held in Paris.
Government authorities reported that the country has been removed from the list of countries considered non-cooperating in tax matters, after it was included in December 2017.
In a statement published by the Ministry of Foreign Affairs of Panama, it is stated that "... the Council of Economic and Financial Affairs of the European Union, known as ECOFIN, decided to exclude Panama from the list of non-cooperative countries in tax matters, in which our countrywas included on December 5, 2017."
After two years of negotiations the European Union has reached a consensus and defined a list of 17 nations considered to be "tax havens", among which is Panama.
For the first time, tax authorities in the European Union have announced the creation of a black list, composed of 17 countries considered "non-cooperative jurisdictions in fiscal matters".
On January 1st the decree signed by the French government in April 2016 to include Panama in the list of countries considered to be tax havens came into force.
According to the French government the scope of the agreement signed in October by Panama for the automatic exchange of bilateral tax information with OECD countries, was not clear and the decree signed in April, which included Panama on the list from January of this year, was not repealed.
The amendment to the Tax Code, partially approved by Congress, omits the concept of "global income", and establishes "territorial income".
Latribuna.hn reports that "...The Bill for a new Tax Code was drafted by the government, employers and a sector in the social economy, and during the dissemination it was said that the change to "Territorial Income represents a setback in the fight against capital flight."
The two countries have signed an agreement to avoid double taxation of income in the commercial use of ships and aircraft.
From a statement issued by the Ministry of Foreign Affairs:
The Republic of Panama and the Federal Republic of Germany, signed an agreement to avoid double taxation with respect to taxes on income, and with respect to international commercial use of ships and aircraft.
In the view of the French government it is not clear what the scope is of the agreement recently signed by Panama for bilateral automatic exchange of tax information with OECD countries.
Theagreement signed in late Octoberby Panama does not seem to be enough for France, which has decided to keep the Central American country on its list of countries considered as tax havens.