This feed is published daily with selected new or updated
content from across the Lowtax Network. For a list of Lowtax Network
sites, many of which feature daily news, see
below.
Providing essential tax news and information
for globally mobile artists, contractors, entrepreneurs, professionals,
small businesses, sportspersons and entertainers.
Lowtax Portal:
'Low-tax' business and investment in the top 50 jurisdictions covered in
exceptional detail.
Tax News: Global
tax news, continuously updated through the day.
Investors Offshore:
The independent offshore and alternative investment guide for expatriates
and the globally aware investor.
Law & Tax
News: Daily news and background data on tax and legal developments
for international business.
Offshore-e-com:
A topical guide to offshore e-commerce focused on tax and regulation.
Lowtax Library:
One of the web's largest and most authoritative business and investment
information sources.
US Tax Network:
The resource for free online US taxation information, covering: corporate
tax, individual tax, international tax, expatriates, sales and e-commerce
tax, investment tax.
NEW! Personal
Business Tax Guide: Providing essential tax news and information
on business for contractors, entrepreneurs, professionals, small businesses,
artists, sportspersons and entertainers.
Flat Tax Proposed For Panama,
by Mike Godfrey, Tax-News.com, Washington
Thursday, April 30, 2009
Ricardo Martinelli, the Panamanian businessman who is leading the race to become
the next President of the Central American country is proposing to revamp the
tax system with the introduction of a ‘flat tax.’
Frank De Lima, Martinelli’s senior economic advisor, told Dow Jones Newswires
in a recent interview that the opposition Democratic Change candidate is still
considering the rate at which the flat tax will be imposed, but it will likely
be fixed somewhere between 18% and 22% for companies and between 12% and 17%
for individuals.
In another pro-business tax proposal, Martinelli wants to abolish a 1.4% tax
on gross revenues, approved by Panama’s legislature in February 2005 as
part of a major fiscal reform package which sought to raise additional revenues
to reduce the country’s level of debt. Martinelli also wants to increase
the number of deductions available for business in the tax system, although
it is intended that the proposed reforms would be revenue neutral.
Currently, taxation in Panama, which is governed by the Fiscal Code, is on
a territorial basis; this is to say, that taxes apply only to income or gains
derived through business carried on in Panama itself. An entity which has its
activities or assets outside Panama will automatically escape taxation.
The rate of income tax in Panama is 30% on chargeable income up to PAB100,000
(USD100,000) rising to 42% on income over PAB500,000 for companies that are
registered with the Official Registry of National Industry or that have government
contracts. But the territorial nature of Panama’s tax system has succeeded
in attracting 120,000 corporate entities, of which the majority can be considered
to be 'offshore'.
Aspects of Panama’s tax system have been called into question
by the Organisation of Economic Cooperation and Development, which recently
placed the country on its ‘grey list’ of territories which have
not yet achieved prescribed minimum standards in tax transparency (i.e. signing
a minimum of 12 tax and information exchange agreements).
Tax is also one of
the issues holding up a free trade agreement with the United States. Signed by President
Bush in 2007, the US Congress is refusing to ratify the agreement until “specific
actions to meet ILO labor standards and resolution of the tax haven issue”
are resolved, as Rep. Charles Rangel, the New York Democrat who chairs the influential
House Ways and Means Committee, said recently.
It is unclear, however, how Panama’s proposed flat tax would fit into
this mix if Martinelli wins the popular vote on May 3. The supermarket tycoon
is currently the favourite to replace President Martin Torrijos, whose term
expires in September.
Flat taxes, which reduce the complexities involved in progressive tax systems, have become a popular means of attracting foreign investment in certain parts of Europe, and have been a key ingredient in the transformation of several economies, notably the former Eastern Bloc nations of Estonia, Slovakia and Russia. The flat tax revolution has yet to reach the shores of Latin America; but while Panama is one of the more successful economies in the region, Martinelli must be hoping his proposals will achieve similar results.
One of the web's largest and
most authoritative business and investment information sources. Alongside
topical, daily news on worldwide
tax developments, you can receive weekly newswires or
access up-to-date intelligence
reports on a range of legal, tax and investment subjects.
Our 16 constantly updated
intelligence reports cover every important aspect of 'offshore' and international
tax-planning in depth, including banking secrecy, the EU's savings tax
directive, offshore funds, e-commerce, offshore gaming and transfer pricing.
Reports are available for immediate downloading or as subscription
services with news pages.
Advertising & Marketing
With over 50,000 qualified readers every month our web-sites
offer a number of cost effective, targeted advertising,
sponsorship and marketing opportunities:
Display advertising - from 'skyscrapers' to 'buttons'
Content/article submission and sponsorship
Opt-in email marketing
On-line Services Directory listings
Could your corporate web-site or newsletter benefit
from incorporating regularly updated news and content
tailored to serve your clients' interests? We can provide
a variety of maintenance-free news and content solutions
that can be seamlessly integrated and dynamically delivered:
Click here for a brief introduction
to RSS and instructions on how to get the Tax-News feed.
IMPORTANT NOTICE: THE LOWTAX NETWORK has
taken reasonable care in sourcing and presenting the information contained on
this site, but accepts no responsibility for any financial or other loss or damage
that may result from its use. In particular, users of the site are advised to
take appropriate professional advice before committing themselves to involvement
in offshore jurisdictions, offshore trusts or offshore investments. All materials
on this site copyright THE LOWTAX NETWORK 1999 to 2010. Contact
us for further information.
TAX-NEWS.COM
Free Tax-News Feed