Panama has a tradition of double taxation which is not recognized by other nations who also require the signing of Information Exchange Agreements (IEA), but they are not based on reciprocity and this affects the competitiveness of banks and the country, said Adolfo Linares, president of the Chamber of Commerce in Panama.
The signing of these IEA has not translated into an increase on the competitiveness indexes of recent studies conducted by different rating agencies from the international market, said Linares."Although we have a dollarized economy, unfairly, the Isthmus has been seen as having very low rates of taxation and every Panamanian knows that this is not the case because the taxes we pay are no where near low," he said.
Frank De Lima, Minister of Economy and Finance, explained that the IEA with Germany, DTT agreements and the agreement with the U.S., will also provide advantages for the growth of the national economy.
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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 .
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.
The precise date has not been announced yet; this is the third agreement of this nature negotiated by Panama.
The country has already signed double taxation treaties with Italy and Mexico.
Alberto Vallarino, Panama's Economy Minister, informed: "With this agreement with Belgium, we now have three double taxation agreements being negotiated.
The Panamanian Chamber of Commerce has rejected accusations made by the French President, Nicolas Sarkozy, in which he implied that Panama was a tax haven.
A press release from the Panamanian Chamber of Commerce, Industries and Agriculture states:
The Panamanian Chamber of Commerce, Industries and Agriculture (CCIAP), rejected the accusation made last week by French President Nicolas Sarkozy, in the context of the G-20, which indicated that Panama is a tax haven.