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Guide of Double Taxation Treaties signed by Panama

In the last twenty months, the Republic of Panama has signed several double taxation treaties with countries such as Mexico,  Barbados, Netherlands, Portugal, Spain, Singapore, France, Ireland, Israel, Italy, South Korea, Czech Republic, Qatar, United Arab Emirates and  Barbados. They were  duly ratified by the Panamanian congress and in consequence are considered local laws of Panama. Recently, the United Kingdom has signed a treaty and is pending to be ratified by Panamanian Congress soon. In the case of  Austria and Vietnam they are at different stages of negotiation.

The purpose for the Republic of Panama is triple: First, to cooperate in the implementation of regulations against international tax evasion. Second, to fulfill international requisites with theOrganization for Economic Cooperation and Development in order to be considered as non taxation sanctuary of international tax evasion. Third, to avoid the double payment of taxes of foreign citizens or companies domiciled in Panama and in their countries of origin as well.

The basic double taxation treaty includes a list of the classification of taxes to recognized by each State and the Republic of Panama. The most important taxes that every treaty includes are: dividends, capital gains, real estate income, royalties, loan interests paid, and salaries, among others.

The attached tables indicate treaties that the Republic of Panama has signed and ratified, with a detail of countries and  taxes involved in each treaty, treaties that Panama has negotiated, and treaties that Panama has signed only.

Double taxation treaties which Panama has negotiated

  • BAHREIN
  • BARBADOS
  • BELGIUM
  • SOUTH KOREA
  • MEXICO
  • UNITED ARAB EMIRATES
  • SPAIN
  • FRANCE
  • PORTUGAL
  • QATAR
  • LUXEMBOURG 
  • NETHERLANDS
  • IRELAND
  • ISRAEL
  • ITALY
  • SINGAPORE
  • CZECH REPUBLIC
  • UNITED KINGDOM

 

Double Taxation treaties already signed by the Republic of Panama

  • BARBADOS
  • SOUTH KOREA
  • QATAR
  • MEXICO
  • UNITED ARAB EMIRATES
  • SPAIN
  • FRANCE
  • PORTUGAL
  • LUXEMBOURG 
  • NETHERLANDS
  • IRELAND
  • ISRAEL
  • ITALY
  • SINGAPORE
  • CZECH REPUBLIC
  • UNITED KINGDOM

 

Double Taxation treaties duly ratified by the Congress of the Republic of Panama

  • BARBADOS
  • SOUTH KOREA
  • MEXICO
  • UNITED ARAB EMIRATES
  • SPAIN
  • FRANCE
  • PORTUGAL
  • QATAR
  • LUXEMBOURG 
  • NETHERLANDS
  • IRELAND
  • ISRAEL
  • ITALY
  • SINGAPORE
  • CZECH REPUBLIC

 

By Leonardo Bonadies

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