Panama’s double tax treaties
Panama has 17 double taxation treaties, according to the DGI: Barbados, Czech Republic, France, Ireland, Israel, Italy, Luxembourg, Mexico, the Netherlands, Portugal, Qatar, Singapore, South Korea, Spain, the United Arab Emirates, the United Kingdom and Vietnam.
There is no treaty with the United States or Canada. With both, Panama has only a tax information exchange agreement.
The 17 treaties
The DGI publishes the same list on two pages. It separately mentions three more treaties that have been negotiated: Austria, Bahrain and Belgium. A figure of 18 matches neither list.
Source: DGI, double taxation treaties in force; DGI, questions on treaties
The multilateral instrument
The DGI lists Italy as not covered. The others have dates in 2019 or 2020 and effect on withholding from January 1, 2022.
| Treaty | MLI effective | Effect on withholding |
|---|---|---|
| Israel | January 1, 2019 | January 1, 2022 |
| United Kingdom | October 1, 2018 | January 1, 2022 |
| Spain | January 1, 2022 | January 1, 2023 |
| Mexico | July 1, 2023 | January 1, 2024 |
| Vietnam | September 1, 2023 | January 1, 2024 |
| Czech Republic | September 1, 2020 | January 1, 2025 |
| Singapore | April 1, 2019 | January 1, 2025 |
Source: DGI, double taxation treaties in force
The United Kingdom
The UK Panama treaty has been in force since December 12, 2013. It took effect in Panama on January 1, 2014 and in the United Kingdom on April 6, 2014 for income tax and capital gains tax.
Source: HMRC, Panama tax treaties
Exchange of information agreements
With the United States, Panama signed a tax information exchange agreement in Washington on November 30, 2010. With Canada, it signed one in March 2013. The DGI also lists such agreements with Denmark, Finland, Greenland, Iceland, the Faroe Islands, Norway, Sweden and Japan.
Source: DGI, other agreements; U.S. Treasury, tax information exchange agreements; Finance Canada, tax information exchange agreements
Questions people ask
Is there a Canada Panama tax treaty?
No. Panama is not among Canada’s treaties in force, signed or under negotiation. There is a tax information exchange agreement.
Is there a Spain Panama treaty?
Yes. Spain is among the 17 treaties, and the multilateral instrument applies to it from January 1, 2022.
How do I use a treaty?
The tax residence certificate is the usual proof of residence. Its petition names the treaty that applies.
What the law does not say
- The general date the multilateral instrument entered into force for Panama, and the law that approved it.
- The approving laws and entry into force, on the Panamanian side, of the agreements with the United States and Canada.
Official sources
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