The General Directorate of Revenue of Panama’s Ministry of Economy and Finance announced that India and Panama have shown interest in establishing a tax treaty, following a meeting between officials from both nations held at Panama on 28 August 2024.
A tax treaty is a bilateral agreement between two countries aimed at addressing issues related to double taxation on both passive and active income for their respective citizens. These treaties typically establish the limits on the amount of tax a country can impose on a taxpayer’s income, capital, estate, or wealth. Income tax treaties are also commonly referred to as Double Tax Agreements (DTA).
The treaty, if concluded, would be the first between the two countries and would need to be finalised, signed, and ratified before it can take effect.
