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Monday, September 23 2019 @ 03:00 am EDT

Panama Signs Dual Taxation Treaty with Qatar

Money MattersPanama's Vice Minister of Economy and Finance, Frank De Lima, confirmed that the Government of Qatar and Panama have reached an agreement on Double Taxation Treaty which allows for the exchange of financial information in order to avoid double taxation. De Lima noted that this month Panama also has on their agenda similar negotiations with France and Luxembourg. He said Panama has now signed a total of seven dual taxation agreements (with Qatar, Belgium, Italy, Netherlands, Barbados, Spain and Mexico) and that soon others will be forthcoming, and that Panama should be removed once and for all from the gray lists of all countries who are members of the Organization for Economic Cooperation and Development (OECD). (Panama America)

Editor's Comment: Most of the countries in the world tax the activities occurring within their borders. Panama falls into this category. There are a handful of countries, like the United States for instance, who have decided that they should be able to tax the income and business activities of their citizens no matter where they are in the world. Obviously, this creates a situation of conflict between Panama and the United States. In the past several years the United States has taken a more aggressive approach towards trying to force other countries to provide them with additional information. The United States has used both direct and indirect economic pressure to arm twist countries like Panama into compliance. However, the very simple answer for Panama is that it makes no sense whatsoever for Panama to enter into some kind of an "information sharing" agreement with the United States, simply because the United States does not have any information Panama wants. The United States enters into these kinds of "information sharing" agreements with other nations that have a similar approach on taxation - such as France and Germany. The rest of the world is now getting tired of these strong arm tactics, and they are banding together to negotiate and sign hundreds of these bilateral "dual taxation treaties." On the surface these treaties make it easier for companies from Qatar (in this case) to do business in Panama, because any taxes they pay on income here will be reported to their home country, and they won't be taxed on that income again. That sounds simple and fair, right? However if the individual or company was from the United States they would still be taxed by the United States, even if they had to pay taxes in Panama. Basically no matter where you go in the world, Uncle Sam wants your money. Expect more and more of these kinds of agreements from Panama as they reach out to all of the hundreds of other countries in the world who are similarly tired of the strong arm economic tactics of the United States and others.

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Panama Signs Dual Taxation Treaty with Qatar | 2 comments | Create New Account
The following comments are owned by whomever posted them. This site is not responsible for what they say.
Panama Signs Dual Taxation Treaty with Qatar
Authored by: Anonymous on Thursday, May 13 2010 @ 12:18 pm EDT

Don, I fully agree with your assessment of the situation. The United States´ approach to worldwide taxation of US Citizen is unique. (i.e.: No other country in the World (not even France, or Sweden) has such an imperialistic tax system). THANK GOD Panama does not plan to sign such a dual taxation agreement with the USA, otherwise most of the so-called "Residential Tourists" and "Pensionados" would leave Panama immediately... and move to Vanuatu... Jajajaja!!!

Panama Signs Dual Taxation Treaty with Qatar
Authored by: Anonymous on Thursday, May 13 2010 @ 02:05 pm EDT

The Panamaniam Govt is basically flipping the bird to the big bad ass US Govt and gaining support from other countries that are fed up with the harassing coming from the north. It is funny that a little country like Panama has the cojones and the smarts to outflank the the bully in the school yard, it is not over yet and the US might try to come up with another way of taxing expats living and earning money in foreign shores, however there are a number of countries that are paying attention to Panama's moves and they might follow....Let's root for the little guy (Panama).