Panama One Step Closer to Leaving Gray List
Three double taxation agreements down and 12 to go for Panama to be removed from the OECD gray list of fiscal paradises.
Panama has finished negotiating the terms of its agreement with Belgium and already has established agreements with Italy and Mexico. Mexico will sign the treaty on February 22 in Cancun and Italy has yet to set a signature date.
Minister of the Economy, Alberto Vallarino, explained that Panama always maintains its right to impose taxes on dividends, royalties or interest of foreign companies which will be recognized in their respective countries.
Panama also says that negotiations with Spain are quite advanced. Several Spanish companies including Sacyr Vallehermoso and FCC have just been awarded large canal construction concessions which Vallarino recognizes will impact negotiations.