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 .
Minister Frank De Lima reported that in the last two years, the Republic of Panama has developed a strategy to protect international competitiveness of services, making a commitment to adhering to international conventions and agreements on double taxation.
As part of this strategy, he has reorganized the High Commission for the Protection of International Financial Services, which is led by Minister De Lima on behalf of the Ministry of Economy and Finance.
The head of the MEF has also added new concepts to tax law that did not previously exist, such as transfer pricing and tax residence, and has also given authority to the Department of Revenue (DGI in Spanish), to exchange information with countries with which Panama has a tax treaty. In addition, said De Lima, the ‘Know Your Client’ policy was enacted for resident agents in tax matters.
De Lima is part of the delegation led by President Ricardo Martinelli to Europe, and also expects to meet with the OECD during his visit to Paris.
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.
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.
Both countries will begin negotiations for a double taxation agreement on November 11th.
Panama's economy vice minister, Frank de Lima, who leads the negotiating team, has also contacted France, Germany, Australia, Japan, Holland, Switzerland, Norway, Island, Lichtenstein and England in order to negotiate double taxation agreements.