How many tax treaties does Panama have?

Panama has 18 double taxation agreements (DTAs) in force. These treaties help prevent the same income from being taxed in both countries and typically reduce withholding tax rates on cross-border payments.

What are Panama's most important treaty partners?

Panama's major treaty partners include Mexico, Spain, United Kingdom, South Korea, France, and others. These treaties cover provisions for income tax, corporate tax, withholding tax on dividends, interest, and royalties.

How do Panama's tax treaties affect withholding rates?

Tax treaties typically reduce withholding tax rates on cross-border payments. Without a treaty, Panama may apply its standard withholding rates. With a treaty, rates on dividends, interest, and royalties are often reduced to 10-15% or lower. The specific rates depend on the individual treaty.

Panama Tax Treaties

Panama has approximately 18 double taxation agreements in force. Notably, Panama does not have a comprehensive tax treaty with the United States, though information exchange agreements exist. Panama's treaties typically provide reduced withholding rates on dividends, interest, and royalties. Panama has signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and participates in the Global Forum on Transparency and Exchange of Information for Tax Purposes.

TerritorialNorth America

Tax Treaty Network

Double taxation agreements in force

Major Treaty Partners

MexicoSpainUnited KingdomSouth KoreaFranceIrelandNetherlandsSingaporeItalyIsrael

About Panama's Treaty Network

Panama maintains a network of 18 double taxation agreements. These treaties serve to eliminate or reduce double taxation of income earned in one country by a resident of the other, and they provide mechanisms for resolving tax disputes between the two countries. The treaties typically cover income tax, corporate tax, and withholding taxes on dividends, interest, and royalties.

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Panama Tax Treaties

Major Treaty Partners

About Panama's Treaty Network

Panama Tax Treaties FAQ