(MENAFN - Emirates News Agency (WAM)) The UAE and Panama signed here today the final agreement on avoidance of double taxation on income to boost the import and export operations and develop the trade between the two countries.
Obaid Humaid Al Tayer, State Minister for Financial Affairs signed on behalf of the UAE, while the Panama's Minister of Finance signed on behalf of his country.
The deal reflects the keenness of UAE on bolstering the financial relations with different countries worldwide, especially with South American countries in accordance with the resolutions of the Arab and South American Countries' Summit, on strengthening of the trade, economic and tourism ties, besides encouraging the aviation industry. The agreement is the first of its kind between Panama and the Arab country.
The agreement also comes in line with the efforts being exerted by the UAE to open on the global economy through boosting free movement of production factors, increment of investment and encouraging the import and export operations.
Commenting on the deal, Al Tayer said, "the signing of agreement is one of the important steps to consolidate the bilateral relations in the economic and financial areas", indicating that the deal will alleviate the burden of taxations on the investments of private sector by 75 per cent, as well as the exemption of the public corporations, sovereign funds from the tax dividends, interest and capital gains.
The agreement also refers to the provisions relating to the exchange of information and the application of standards of transparency in accordance with the requirements adopted by the Group of Twenty of the Global Forum for transparency, in addition to the dispute settlement mechanisms.
The Protocol states the provisions relating to the granting of several additional benefits to the public and private sectors, and restricting benefits only to institutions and residents in the state. These agreements provide a package of normative acts to divide taxable profits between countries and counter the tax evasion.