Panama's Double Taxation Agreements

The country known for its canal is making progress toward its objective to sign at least 12 DTA in order to comply with the OECD requirements and come off the organization's list of tax havens.

Tuesday, August 31, 2010

Signing double taxation agreements (DTAs) has the added benefit that it may make it easier for the countries with which the information sharing agreements are reached to invest in Panama.

This would be precisely the case for a company with its headquarters in a country whose government authorized it to develop in Panama subject to the existence of a DTA between both countries.

Maria F. Landaeta writing for Capitales.com comments that Panama's DTA model, based on the Organization for Economic Co-operation and Development (OECD) requirements, allows it to defend its domestic taxation system, retaining its power to tax at source.

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More on this topic

Panama to Negotiate New Double Taxation Treaties

January 2012

Before April 2012 the country will negotiate double taxation agreements with the UAE and Hungary.

The announcement was made by the Minister of Economy and Finance, Frank de Lima, during the opening of the new ordinary session of the Legislature.

"The head of the Ministry of Economy and Finance stressed the importance of the ratification by the French legislature of the double taxation agreement with Panama signed last December and its departure from the "gray list " collated by the Organization for Economic Cooperation and Development (OECD). He said that the move by France means that later this month, when France makes its list of countries with uncooperative tax policies, Panama should be left out of this category", reported Prensa.com.

Panama To Negotiate Tax Agreement with UK

November 2011

Both countries have agreed to start meetings in Panama, in order to sign a Double Taxation Treaty.

A press release from Panama’s Ministry of Economy and Finance states:

Following a visit by the Minister of Economy and Finance, Frank De Lima, to Britain, and also his meeting with David Hartnett of HM Revenue and Customs, both officials have agreed to start meetings in Panama, with the view to signing a Double Taxation Treaty .

Panama Signs Tax Agreement with U.S.

November 2010

On November 30th Panama will sign a tax agreement with the United States.

The signing is part of a strategy by the country to exclude Panama from the grey-list created by the Organization for Economic Cooperation and Development (OECD), informed the minister of Economy and Finance, Frank De Lima.

Panama and Mexico Sign Tax Agreement

November 2009

Both countries signed a double taxation agreement.

It is based on the model proposed by the Organization for Economic Co-operation and Development (OECD).

Alberto Vallarino, Panamanian Economy and Finance Minister, explained that "...the treaty establishes that once it is ratified by both parliaments, Mexico will remove Panama from their 'black-list'".

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