Panama and South Korea Sign Tax Agreement

The country completed 9 of 12 agreements required by the OECD to remove it from the tax haven gray-list.

Wednesday, October 20, 2010

The president, Ricardo Martinelli and his counterpart Lee Myung-bak took part as honorary witnesses to the signing of the Treaty for Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to income taxes between the two countries.

This initiative seeks to improve transparency and promote the attraction of foreign capital to generate greater confidence among investors. "With the signing of this treaty Panama is gaining credibility and demonstrates that we are a country that sets clear ground rules." said Martinelli.

The treaty with South Korea is the second signed during this first official visit of President Martinelli and Foreign Minister Juan Carlos Varela. The first agreement was with Singapore.

Martinelli Lee and Myung-bak were pleased with the signing of the agreement since it is intended to meet international standards and show fiscal transparency.

In addition to South Korea and Singapore, the country has signed treaties to prevent double taxation with Luxembourg, Mexico, Spain, Qatar, Barbados, Portugal and the Netherlands, while it has already negotiated and is awaiting sign-agreements with Italy, Belgium, France and Ireland. Under negotiation is an agreement with the Czech Republic.

More on this topic

Panama and Singapore Sign Tax Agreement

October 2010

The Panamanian government announced the signing of the agreement to avoid double taxation.

Vice President and Foreign Minister, Juan Carlos Varela, and the Minister of Foreign Affairs of Singapore, George Yeo, signed a Treaty for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to income taxes, the first such agreement signed with an Asian country.

Panama to Negotiate Agreements with South Korea and Singapore

August 2010

The negotiations will bring to 12 the number of double taxation agreements it has, equalling the minimum required by the OECD.

Panama's Vice-minister for the Economy, Frank De Lima, indicated thta the agreements will mean that by next year the country will no longer be on the gray list held by the Organisation for Economic Co-operation and Development (OECD).

Central America: An Ideal Place for Investing

June 2010

Before the president of South Korea, Panamanian president Martinelli spoke of the isthmus’ privileged geographic location to attract Asian investment.

At the XXXV Summit of Heads of State of the Central American Integration System (SICA), Ricardo Martinelli noted that the region could become the gateway for Korean investment in Latin America.

Panama to Sign Tax Agreement with Mexico

February 2010

Both countries will sign a double taxation agreement in Cancún, Mexico.

The Mexican treaty will be the first out of 12 agreements that Panama intends to sign with OECD members (Organisation for Economic Co-operation and Development).

“Such requirement was set by OECD in order to remove the country from a ‘gray-list’ of countries considered tax havens”, reported Prensa Libre.

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