Q24N (La Estrella) The inclusion of Panama in the Netherlands’ blacklist for being a jurisdiction whose tax is less than 9% has been maintained since 2020. The news generated surprises and reactions of rejection among the authorities and the general population.
The article published by Mondaq – a provider of analysis, data and content marketing based on artificial intelligence for professional services companies – refers to the announcement made on December 29, 2023, by the Ministry of Finance of the Netherlands, which lists the jurisdictions that during the next year will remain without a legal tax on profits and jurisdictions with a legal rate of tax on profits, less than 9%.
In 2020, the Netherlands Ministry of Finance launched a consultation on which jurisdictions should be included in the Netherlands’ list of low-tax jurisdictions for 2021, including Panama for belonging to the European Union’s tax blacklist. The consultation concluded on November 6, 2020, and the list of low-tax territories for the following year (2021) has been announced every December since then.
– Advertisement –
The agency’s information was replicated by a local media outlet, with one of the first to react being the President of the Republic, José Raúl Mulino, who on his X account —formerly Twitter— said: “I strongly reject the inclusion by the Netherlands of Panama on its blacklist for tax issues that concern its jurisdiction and not ours. I will instruct the Foreign Ministry to formalize it accordingly. Meanwhile, its companies will not be able to participate in any type of public act or contract. The same applies to voting in international organizations.”
At the time of writing, the president’s post had 390 comments, 287 retweets, 767 likes and 27 thumbs up, not counting the number of times it could have been shared.
Francisco Javier Álvarez de Soto, former foreign minister, also shared his point of view on Linkedin, and said: “The president of Panama is right to reject the action of the Kingdom of the Netherlands. It is a unilateral, unfriendly and illegal act, in my view, from the point of view of international law, including international trade law contained in the multilateral agreements of the WTO, as well as in the Association Agreement – commercial pillar between the European Union and Central America. In light of this action, I am of the opinion that the Panamanian authorities should, in fact, diplomatically protest to the Dutch government through the Panamanian Ministry of Foreign Affairs and, in addition, consider that the Ministry of Commerce and Industry, through the Office of International Trade Negotiations – not VICOMEX -, as established by law, 1.) resume consultations within the World Trade Organization, as was done in 2012 with Argentina, 2.) request consultations under the EU-CA Agreement and 3.) consider taking this matter to the International Court of Justice (ICJ) through the Ministry of Foreign Affairs, using a top-level international law firm for this claim.
Additionally, I believe that this type of situation is a wake-up call to evaluate the convenience of starting, without further delay, the process of negotiations for a future accession of Panama to the OECD.
In Panama, about 10 companies operate under Law 41 of 2007 or the SEM Law, Headquarters of Multinational Companies.
In addition, through the port of Rotterdam, the largest and most important redistribution port in Europe, it receives merchandise from Panama, being the second most important market for Panamanian exports.
– Advertisement –
The Netherlands’ blacklist
The Netherlands blacklist also includes jurisdictions included in the European Union (EU) blacklist of non-cooperative jurisdictions.
The list, along with Panama, includes: Anguilla, Antigua and Barbuda, Bahamas, Bahrain, Barbados, Belize, Bermuda, British Virgin Islands, Cayman Islands, Fiji, Guernsey, Guam, Isle of Man, Jersey, Palau, Russia, Samoa, Trinidad and Tobago, Turkmenistan, Turks and Caicos Islands, Seychelles, United States Virgin Islands, American Samoa and Vanuatu.
While the blacklist, which is being revised this year after its publication at the end of 2023 included Antigua and Barbuda, Belize, Russia and Seychelles, and eliminated the United Arab Emirates.
– Advertisement –
– Advertisement –
Source link
Q24N
