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.
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.
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.
From January 1, 2017 the agreement ratified between both parties to avoid double taxation of income and assets will come into effect.
From a statement issued by the Ministry of Foreign Affairs in Costa Rica:
On Wednesday August 10 at the headquarters of the Federal Ministry of Foreign Affairs in Germany, a ceremony was held to exchange instruments of ratification of the agreement between Costa Rica and Germany to avoid double taxation on income and on assets.
The agreement signed by the governments will be formalized in August in the city of Hanoi.
From a statement issued by the Ministry of Foreign Affairs:
The Republic of Panama and the Socialist Republic of Vietnam initialed an agreement on Friday to avoid double taxation, which will be signed by the appropriate authorities in the city of Hanoi in August.
Transfer pricing and double taxation are two of the topics covered in three bills to reform regulations which the Ministry of Finance has put to public consultation.
One of the proposals is the bill on "Informational declaration of transfer pricing".Crhoy.com explains that"...This empowers the tax authorities to check that transactions between related parties are valued at prices similar to those that would be agreed between independent parties in comparable transactions. "
The treaty to avoid double taxation will come into force in 2018 and includes a clause for exchanging tax information upon request, in accordance with OECD standards.
Ending a story that began two years ago when Colombia suggested including Panama on its list of tax havens, the government has finalised negotiations and announced that the treaty to avoid double taxation will be signed by presidents Santos and Varela in June this year and will take effect automatically in 2018.
Legal tax engineering is a mandatory business practice for anyone who wants to be competitive in today's globalized world, and only those who are not entrepreneurs can afford to refuse to acknowledge this fact.
EDITORIAL
With the same firmness that we criticize businesspeople who evade taxes or bribe officials to get a contract, we must defend every business practice which is framed within the law to pursue the best use of available resources to generate wealth through the production of goods and services, which is what businesses do.
The Legislative Assembly of Costa Rica has approved an Agreement with the Federal Republic of Germany to avoid double taxation of income and wealth.
From a statement issued by the Legislature:
The deputies approved in the process of their Second Debate, record 19122, Approval of Agreement between the Republic of Costa Rica and the Federal Republic of Germany to avoid double taxation of income and wealth.
In a seventh round of negotiations, an attempt will be made to lay the groundwork for an agreement that seeks to avoid damage to both countries.
If an agreement is not reached, Colombia will classify Panama as a tax haven, with a consequent increase in costs for bank transactions between the two countries, and exposing Columbia to the measures provided under Panama's Law of Retaliation.
As part of the agreements signed between the two governments the elimination of double taxation has been established.
From a statement issued by the Government of Guatemala:
Within the framework of an official visit by President Otto Perez Molina which will took place on Friday, the Governments of Guatemala and Mexico signed the following bilateral agreements:
Congress has passed the elimination of the provision that payments be made by natural and legal persons when they are shareholders in corporate groups.
According to the liberal congresswoman Gabriela Núñez "... The law is properly applied to individuals who receive dividends as when they receive a profit they must pay their taxes; however, when it relates to a company it becomes a double taxation because the company, when it receives dividends, pays the tax and then when it distributes the dividends among its own shareholders, it once again incurs a tax liability of 10%, which is considered prohibited in the Tax Code. "
Panama, Bahrain, the Cook Islands, Nauru and Vanuatu are the countries that have refused to join the OECD agreement for automatic exchange of tax information.
Laestrella.com.pa reports that "... According to data provided by the Global Forum on Transparency, linked to the Organization for Economic Cooperation and Development (OECD), these five states are the only ones who have been unwilling to adhere to the automatic exchange. "