According to Ministry of Economy of the Republic of Panama’s website, the governments of Panama and Italy have launched a series of negotiations to sign an agreement to avoid double taxation. The main goal of Panamanian negotiating team is to “meet the necessary steps to remove Panama from “OECD gray list”, which reduces competitiveness to attract foreign investment, which has been identified as a weakness of Panama's financial center in a study requested by the Superintendence of Banks - said Vice Minister of Economy, Frank de Lima, in a note published last October 21.
This measure transmits us the idea that national government had committed itself to maintain Panama as a solid international financial center and to avoid the strong pressure from the OECD, which have left consequences (the closing of BNP Paribas in Panama). Now Panama expects to meet the conditions g to cooperate with the International Community by fighting tax evasion.
Similarly, bilateral agreements to avoid double taxation can promote technology transfer and private investment into our country, as well as provide a framework for security and stability to the taxpayers. However, our negotiating team must recognize Panama’s position as a developing country to achieve an equitable agreement that will allow Panama to continue their campaign to get out of OECD gray and black lists with full regard over the legal and economic principles supporting Panamanian tax system. Even thought Panama has no social or economic dimension to justify the adoption of these treaties, we must make commitments to combat tax evasion.
Furthermore, our government must be prepared to face any possible inconvenience that may occur during the enforcement of the agreement, for various reasons such as: the differences in tax systems, public expenses, socioeconomic development, methods of taxation and equity in the taxes retained.
Furthermore, our government must be prepared to face any possible inconvenience that may occur during the enforcement of the agreement, for various reasons such as: the differences in tax systems, public expenses, socioeconomic development, methods of taxation and equity in the taxes retained.
Among the countries that Panama is considering negotiating next agreements are Spain, Holland and Mexico.
