If the request by the Panamanian Ministry of Commerce and Industries prospers, a new tax of up to 40% could be established on the dividends distributed by Colombian companies.
In response to a decision by the Colombian government to extend the import tariff for footwear and textiles for two more years from Panama, the Panamanian Ministry of Commerce and Industries has asked the Foreign Ministry to apply the retaliation law, which has been in place since October of last year and which penalizes companies from countries that discriminate against Panama.
“… In November of last year Colombia issued two decrees. One of them adjusted the mixed tariff to the import of textiles and footwear which started a dispute over the limits allowed by the WTO, in the second, it established customs measures which led to a disagreement with the Panamanian authorities.”
Laestrella.com.pa reports that “…The Cabinet Council will decide whether or not to apply a retaliatory measure. Among them, according to Law 48, is application of a dividend tax of up to 40% on companies from States that take discriminatory actions against the country.”