Panama: Tax treaty with Vietnam, information exchange agreement with Japan

Panama: Tax treaty with Vietnam, agreement with Japan

Panama’s national assembly (Asamblea Nacional de Panamá) has ratified two tax-related agreements—an income tax treaty with Vietnam, and a tax information exchange agreement with Japan.

1000

Related content

The income tax treaty with Vietnam (as signed in August 2016 and ratified in February 2017) includes:

  • Withholding tax rates on dividends of 5% or 12.5%, on interest at 10%, and on royalties at 10%
  • Income from agricultural or forestry activities to be categorized as real estate income
  • Requirements for a permanent establishment such as it may be established through an agent or representative, for a minimum period of six months
  • Effective date measures—beginning the first day of January following the calendar year in which the treaty enters into force (which could be 1 January 2018, provided Vietnam ratifies the treaty at some point in 2017)

The agreement with Japan for the exchange of information was also ratified in February 2017, and it applies to taxes of any kind and description including municipal taxes, for which there is no reservation or exclusion.

 

Read a March 2017 report (Spanish) prepared by the KPMG member firm in Panama

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.