The UK has signed a double tax treaty with Panama providing a first-time comprehensive Double Taxation Convention.

The Convention generally follows the OECD Model Double Taxation Convention. Important features include exemption from withholding tax on certain dividends and low withholding rates of 5% on interest and royalties. The Convention also includes the latest OECD exchange of information article.

The new rules will come into force once both countries have completed their legislative procedures.

More details are available from HMRC

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