TAX NEWS - JUNE 2010

Panama Tax: Panama closes tax deal with France

02 June 2010 -- Panama and France have agreed on a treaty to avoid double taxation. Deputy foreign Minister Frank de Lima closed the deal last week during his visit to Paris.

The treaty could be signed in September, when Vice President and Foreign Minister Juan Carlos Varela is expected to make a trip to the European country, he said yesterday at a news conference in Lima.

This agreement is very important because of  France's belligerence against tax havens.

"The French government  is   committed to removing  Panama from its discriminatory list," said the deputy minister.

De Lima refers to a list drawn up by France last February -distinct from the one of the Organization for Economic Cooperation and Development (OECD , which listed Panama as a tax haven along with  other 17 territories.

Major French companies have an interest in Panama. This is the case of Suez GDF and Alstom train manufacturer, interested in the first Metro system of Panama.