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.
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.
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.