On August 30, 2016 at the Ministry of Finance, Deputy Minister of Finance, Mr. Do Hoang Anh Tuan and Ambassador Extraordinary and Plenipotentiary of the Republic of Panama to Vietnam, Mr. Servio S. Samudio B. officially signed the Agreement on avoidance of double taxation and prevention of tax evasion with respect to taxes on income between the Government of the Socialist Republic of Vietnam and the Government of the Republic of Panama. The signing ceremony took place in a solemn and friendly atmosphere witnessed by representatives of the Ministry of Foreign Affairs of Vietnam, the General Department of Taxation and Departments/units under the Ministry of Finance (HTQT, TCDN, QLN&TCDN, Office of the Ministry).
Vietnam and Panama
The signing of the Double Taxation Avoidance Agreement between Vietnam and Panama will contribute to promoting trade and investment cooperation between Vietnam and Panama, creating a clear and stable tax legal environment for Panamanian and Vietnamese investors to develop and expand business and investment activities, and thereby indirectly strengthening comprehensive cooperation in all fields between Vietnam and Latin American countries.
Economic and trade relations between the two countries are still modest in 2015, with Vietnam's import-export turnover reaching 268,8 million USD and imports reaching 23,38 million USD. Vietnam exports to Panama agricultural machinery, wood products, footwear, textiles, plastic products, rattan and sedge products, handbags, wallets, suitcases, hats, umbrellas, bicycles and spare parts; imports plastics, raw materials, wood and wood products. The two sides still have much potential to strengthen cooperation in the fields of trade, maritime transport, agriculture, traditional medicine, etc. Currently, there are several Vietnamese companies that have been promoting the opening of representative offices in Panama and the Colon Free Trade Zone (ZLC) in Panama. Regarding investment, as of July 20, 2016, Panama ranked 52nd out of 115 countries and territories investing in Vietnam with 10 projects with a total registered investment capital of 60,7 million USD. The signing of the Double Taxation Avoidance Agreement will contribute to strengthening the cooperative relationship between Vietnam and Panama and create a new legal environment and attractiveness for cooperation and development for the common prosperity of the two countries in particular and investors in the region in general. Especially for Vietnam, after the Tax Agreement is signed and takes effect (expected to be implemented from January 1, 2017), the Vietnamese Tax Authority will have a legal basis to exchange information with the Panama Tax Authority to serve Vietnam's tax management.
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