De Jager concludes tax treaty with Panama

The Netherlands and Panama have reached agreement on a mutual tax treaty. The treaty was signed by Dutch Minister of Finance Jan Kees de Jager and the Vice-President of Panama, Juan Carlos Varela Rodríguez in The Hague on Wednesday 6 October.

"The main purpose of the treaty with Panama is to regulate the tax part of the mutual economic links. It prevents for instance Dutch entrepreneurs who are doing business in Panama from being taxed twice. Dutch companies which want to invest in Panama now know what they can expect, and, reciprocally, that applies to Panamanian companies too", Minister De Jager said. The treaty with Panama is an extra instrument too in the fight against tax evasion and undeclared savings. The Netherlands has an extensive system of tax treaties and agreements on the basis of which tax data are exchanged. If applicable, new tax treaties are concluded and existing treaties are updated. De Jager: "The treaty with Panama fits in with that policy. The net around the people who do not declare their savings is closing in further and further."

Panama likes to emulate the Netherlands, as the gateway to Europe. The economy of this Central American country, especially known for the Panama Canal, is in good shape and offers Dutch entrepreneurs many opportunities. In order to strengthen the mutual economic ties, various Panamanian politicians, headed by Vice-President Varela Rodríguez, have come to the Netherlands on a short visit. The signing of the tax treaty is an important part of that visit.

The tax treaty between the Netherlands and Panama will probably enter into force in 2012. First, the treaty has to be ratified by the parliaments of both countries.