Is dividend income received from resident and/or non-resident companies exempt from tax? If not, how is it taxed?

Tax (4th edition)

Angola Small Flag Angola

Intercompany dividends from sources within Angola or from outside de country are subject to Investment Income Tax (IAC). In general, IAC requires withholding of 10 percent (or 5 percent in some cases).

Dividends distributed by a resident entity to a resident shareholder are exempt from Investment Income Tax provided that the parent company holds a 25% stake for a minimum holding period of 1 year.

Brazil Small Flag Brazil

Dividends have been exempted from taxes since 1995 for residents and non-residents, even for beneficiaries located in tax havens.

Canada Small Flag Canada

Dividend must be included in income as income from property by Canadian taxpayers. When the shareholder (recipient of the dividend) is a corporation, and the payer is a Canadian corporation, a deduction in the amount of the dividend is possible; hence an inter-corporate dividend can be paid tax-free. When the two corporations are not connected, a temporary tax has to be paid, subject to a refund when a dividend is subsequently paid by the recipient corporation.

A private corporation also has the opportunity of declaring tax-free capital dividends out of its capital dividends account (composed of the non-taxable portion of capital gains generated at the corporate level).

Colombia Small Flag Colombia

Dividends are subject to Income Tax as follows:


Special withholding credit rules apply to dividends paid to resident entities.

Cyprus Small Flag Cyprus

Dividends received by a resident company (or a permanent establishment of a non-resident company) from overseas are exempt from income tax and SDC tax. Since January 2019, CFC limitations apply to this exemption where both limbs of the following test (Passive Dividend Rules) apply, namely where: the investment income is more than 50% of the paying company's activities; and the foreign tax burden on the income of the paying company is substantially lower than the Cyprus tax burden.

Germany Small Flag Germany

95 % of the dividend income received by corporations is effectively exempt from corporate income tax since 5 % of the dividend received is treated as non-deductible business expense. This tax exemption generally only applies in case the corporate shareholder owns 10 % or more of the shares of the respective corporation.

The tax exemption is not applicable if the shareholder receiving the dividends is a financial institution, insurance company or pension fund. In addition, the tax exemption is not available in case the dividends have been deducted as business expense at the level of the distributing corporation.

The dividend tax exemption generally also applies for trade tax purposes if the share-holder receiving the dividend holds at least 15 % of the shares in the distributing corporation from the beginning of the fiscal year and the distributing corporation derives its in-come essentially from certain active business operations.

Gibraltar Small Flag Gibraltar

There is no charge to tax on the receipt by a Gibraltar company of dividends from any other company, regardless of where incorporated. There is no tax on dividends paid by one Gibraltar Company to another, and there is no liability to tax on dividends paid by a Gibraltar company to a person who is not resident in Gibraltar.

Where a dividend, or part of a dividend, is the distribution of profits that were not assessable to tax in Gibraltar in the hands of the company that originally generated the income, then the dividend, or relevant part of the dividend is not taxable in the hands of an ordinarily resident individual receiving the dividend.

There is also no withholding tax on dividends paid, however, where a company declares a dividend, a return of dividends is required. Listed companies are exempted from this requirement.

Greece Small Flag Greece

Dividends from resident and non-resident subsidiaries are included in the tax base of Greek companies for income tax purposes. Profits received from subsidiaries established in the EU are exempt from corporate income tax in Greece, subject to specific requirements under the rules transposing the Parent-Subsidiary Directive. In such cases, however, apart from the generally applicable interest deductibility limitations, interest incurred for the purposes of financing the relevant participations is not deductible.

If profits are received by local corporations from EU subsidiaries but the relevant prerequisites of the Parent-Subsidiary Directive are not met, it is possible to obtain a foreign imputation tax credit.

The exemption from Greek income tax on dividends received by Greek companies from qualifying EU subsidiaries does not apply to the extent that such profits are not deductible by the subsidiary.

India Small Flag India

Dividend received from resident company

(a) Tax-exempt in the hands of non-resident shareholder

(b) India resident shareholder (not being a corporate or a trust) taxed at 10% (plus applicable surcharge and cess) on dividend received in excess of INR 1 million

(c) ‘Dividend distribution tax’ payable by distributing company at 20.56%

Dividend received from non-resident company

(a) Generally taxed at normal applicable rates in the hands of Indian residents.

(b) Dividend received by an Indian company holding 26% or more of equity share capital in such foreign company, is taxed at a concessional rate of 15%.

(c) No tax payable by distributing foreign company in India.

Ireland Small Flag Ireland

Dividends received by Irish resident companies from other Irish resident companies are exempt from tax.

Dividends received by Irish resident companies from non-resident companies are taxed as follows: (i) 0% - portfolio holdings (>5%); (ii) 12.5% - dividends from trading subsidiaries (in EU/DTA country or where listed company within group); (iii) 25% - dividends from other subsidiaries.

Tax payable on dividends is reduced by applicable credits. There is an extensive credit regime including provisions for credit for foreign underlying and withholding taxes (including multiple lower tier subsidiaries). Furthermore tax credits may be pooled within separate 12.5% and 25% buckets and excess tax credits may be carried forward.

Finally there is an effective dividend participation exemption on dividends received from subsidiaries in an EU Member State. An Irish company in receipt of a dividend from a company in an EU Member State, which is not fully sheltered by actual tax credits, is entitled to a deemed credit to ensure an effective Irish tax rate of 0% on dividends received from EU subsidiaries.

Israel Small Flag Israel

Dividends paid from one Israeli resident company to another are generally exempt from withholding to the extent dividends are distributed from income that generated or accrued in Israel and was subject to regular corporate income tax rates.

Dividends from an Israeli resident company to a non-Israeli resident company are generally subject to withholding at a rate of 25%, which rate is increased to 30% if at the time of the distribution or at any time during the 12-month period preceding the distribution, the recipient of the dividend is, or was, a “substantial shareholder” (generally, a shareholder that holds 10% or more on one of the means of control of the company paying the dividend). A reduced rate may be applicable under a double tax treaty.

Dividends distributed from a preferred enterprise are generally subject to a reduced 20% withholding rate. In addition, dividends paid from certain qualifying income under the IP Regime will also generally be subject to a reduced 20% withholding rate, which rate is reduced to 4% to the extent the dividends are paid to a non-Israeli company and certain other conditions are met (including a minimum 90% holding threshold).

Dividends that an Israeli resident company receives from abroad are subject to the standard corporate tax rate (currently 23%), with a possibility to obtain a direct and indirect foreign tax credit with respect to taxes withheld abroad.

Italy Small Flag Italy

Dividend income received from resident companies is 95% exempt from corporate income tax. The same 95% exemption applies to dividend income paid by non-resident companies provided that:

  • The paying company is not resident of a tax privileged jurisdiction; and
  • The paying company is not on-distributing profits it received from a controlled company tax resident of a privileged jurisdiction; and
  • The payment is fully non-deductible in the country of residence of the paying company. If the payment qualifies for the Parent Subsidiary Directive, the 95% exemption applies to the extent the payment is non-deductible in the country of residence of the paying company.

If the paying company is resident in a tax privileged jurisdiction, a 50% exemption may apply if such company carries out an effective trade.

Austria Small Flag Austria

Dividend income realised by tax resident corporations from domestic body corporates is tax exempt.

Dividend income realised by tax resident corporations from non-tax resident body corporates is exempt from Austrian corporate income tax under the international participation privilege if the (i) non-Austrian body corporate is comparable to a domestic corporation or is an EU company listed in the EU Parent-Subsidiary Directive, (ii) minimum holding period of 1 year has elapsed, (iii) shares in the foreign company constitute at least 10% of the nominal capital and (iv) the foreign company does not mainly derive low taxed passive income. Dividend income from portfolio participations (participation below 10%) in foreign companies is exempt from corporate income tax as well if the (i) foreign company is comparable to a domestic company and is resident in a country with which Austria has agreed on a comprehensive exchange of information or is an EU company listed in the EU Parent-Subsidiary Directive and (ii) does not fall under the scope of the international participation privilege (and in case of participation above 5% is not low-taxed).

Individuals realising dividend income are subject to a flat-rate tax of 27.5% (certain exemptions apply).

Japan Small Flag Japan

Japanese residents are subject to income tax on dividend income received from Japanese corporations and foreign corporations, while dividend-received deductions will be applied to the dividend income received from Japanese corporations.

Japanese corporations are wholly or partly exempt from corporate tax on income received from another Japanese corporation.

If a Japanese corporation has owned 100% of shares of another Japanese corporation during the entire calculation period, the dividend income is wholly excluded from the income.

If a Japanese corporation has owned more than one third of shares of another Japanese corporation during the entire calculation period, 100% of the dividend income minus the amount of interest on debt allocated to the dividend income is excluded from the income.

If a Japanese corporation owns less than 5% of shares of another Japanese corporation on the base date with regard to the dividend, only 20% of the dividend income is excluded from the income.

If a Japanese corporation receives dividend income from another Japanese corporation in any case other than the above, 50% of the income is excluded from the income.

Japanese corporations are subject to tax on the dividend income received from foreign corporations in general. However, if a Japanese corporation has owned 25% or more of the shares or voting rights of a foreign corporation for 6 months or more until the date when the obligations to pay a dividend is fixed, 95% of the dividend income received by the Japanese corporation from the foreign corporation will be excluded from the income of the Japanese corporation.

Luxembourg Small Flag Luxembourg

Dividend income received by a Luxembourg resident company is included in its taxable basis and fully taxable, unless a domestic or treaty exemption applies.

Under the domestic participation exemption, dividend income (and liquidation proceeds) is exempt if, at the time the income is put at the disposal of the taxpayer:

  • the subsidiary entity is (i) a Luxembourg resident entity fully subject to Luxembourg income taxes, (ii) an entity resident in a Member State of the European Union (as defined in Article 2 of the PSD), or (iii) a non-resident capital company liable to an income tax in its country of residence comparable to the Luxembourg CIT;
  • the Luxembourg company holds a direct participation representing at least 10% of the nominal paid-up share capital of its subsidiary (or if below 10%, a direct participation having an acquisition price of at least EUR 1.2 million); and
  • it has held (or commits itself to hold) such qualifying participation for an uninterrupted period of at least 12 months.

If the dividends are distributed by an EU subsidiary which is listed in Article 2 of the PSD, the exemption applies subject to the two additional conditions below:

  • the EU subsidiary is not used for the main purpose or as one of the main purposes of obtaining a tax advantage that defeats the object of the PSD (GAAR); and
  • the dividend/profit distribution from the EU subsidiary have not been deducted from its taxable base (anti-hybrid rule).

Malaysia Small Flag Malaysia

In 2008, Malaysia moved away from the imputation system and adopted the single-tier tax system, which took effect from year of assessment 2008.

Thus, pursuant to paragraphs 12A and 12B of Schedule 6 of the ITA, the following are exempt from tax in the hands of shareholders:

(a) Any dividend paid, credited or distributed to any member by a co-operative society; and

(b) Any dividend paid, credited or distributed to any person where the company paying such dividend is not entitled to deduct tax under the ITA and any deductions in relation to such dividend shall be disregarded for the purpose of ascertaining the chargeable income of the person.

Between 1 January 2008 to 31 December 2013, companies with tax credit balances could still pay dividend under the imputation system and shareholders receiving such dividends are entitled to set-off against their payable taxes.

Mexico Small Flag Mexico

Dividends paid by Mexican tax resident legal entities are not subject to further taxation when they are paid out of the after-tax earnings and profits account, since such income would have already been subject to taxation. If that is not the case, the entity paying dividends would be required to pay corporate tax on such untaxed profits at the moment of the distribution.

Regardless of the abovementioned corporate tax, dividends paid to foreign tax residents, whether individuals or legal entities, as well as to Mexican resident individuals, would be subject to an additional 10 per cent withholding tax. Profits distributed by a foreign resident’s permanent establishment set up within national territory to its parent company could be deemed as dividend income and as such, the 10 per cent withholding tax could also be triggered.

Nonetheless, it should be noted that relief in the form of reduced withholding rates could be provided by double taxation agreements (in so far as certain requirements are met).

The Netherlands Small Flag The Netherlands

In principle, dividend income is part of the income of a company. However, the Netherlands has the participation exemption (deelnemingsvrijstelling), which provides for a full exemption on dividends and capital gains derived from a qualifying subsidiary of a Dutch resident taxpayer.

A subsidiary generally qualifies for the application of the participation exemption if (i) the Dutch resident taxpayer owns at least 5% of the nominal paid-up share capital of a company dividend in shares and (ii):

  • The subsidiary is not held as a portfolio investment ("Motive Test"); or
  • The subsidiary is a qualifying portfolio investment; this is the case if:
    • The subsidiary is subject to an effective tax rate of at least 10% on a taxable base similar to the Dutch taxable base ("Subject-to-Tax Test"); or
    • The assets of the subsidiary consist, for no more than 50%, of low-tax investment assets ("Asset Test").

For the CFC rules introduced on January 1, 2019, we refer to question 9.

Peru Small Flag Peru

Dividend income received from resident companies is levied with a 5% tax rate, except when received by another resident company. In the case of dividends received from non-resident companies, they are not exempt and are deemed to be regular income, being subject to rates ranging between 8% to 30% in the case of individuals, and 29.5% in the case of corporations.

In general, the tax paid abroad on dividends can be credited up to a limit equal to the tax payable on the gross amount of that income in Peru. In case that the recipient of the dividend is a corporation, it is entitled to also credit the corporate tax paid by the foreign entity distributing the dividend and that immediately below the former, as per certain special rules and up to a limit equal to the tax payable in Peru on the gross amount of the dividends.

Philippines Small Flag Philippines

Dividends received by domestic corporations and resident foreign corporations from another domestic corporation are exempt from income tax. Dividends received by a domestic corporation from foreign corporations are subject to the 30% regular corporate tax.

Non-resident foreign corporations are subject to a 30% tax on dividends received from domestic corporations, which may be reduced to 15% subject to compliance with the requirements for tax sparing credit.

Poland Small Flag Poland

As a general rule, dividends received by resident and non-resident companies are subject to a 19% CIT rate unless double tax treaty provides a lower rate or the EU Parent-Subsidiary Directive (“PSD”) applies.

Tax treaties stipulate a lower withholding rate for dividends (5%, 10% and 15%) if certain conditions are met - i.e. the company disbursing the dividend should hold all required documents to apply such lower rate:

a. the tax residency certificate of the recipient of the dividend;

b. the statement that the recipient of the dividend is subjected to income tax in the country of its tax residence;

c. the statement that the recipient of the dividend is the beneficial owner of the received dividend.

Under the PSD, dividends are exempt whenever the dividends are distributed to a qualifying EU/EEA or in Swiss shareholder holds a minimum of 10% (or 25 per cent for companies with their registered office in Switzerland) of the capital or voting rights of its subsidiary, for a continuous period of 2 year.

Portugal Small Flag Portugal

Under Portuguese domestic tax rules, dividends paid by Portuguese resident companies to non-resident entities are subject to a definitive withholding tax at a rate of 25% (which may be reduced to rates ranging from 5% to 15% under a double tax treaty and provided certain formalities are complied with). As per dividends paid to Portuguese resident companies, they are to be included in the taxable profit assessment and subject to CIT at the general rate of 21%.

Notwithstanding the above, Portuguese Corporate Income Tax Code provides a participation exemption regime which has a wider scope than the mere compliance of the EU Parent-Subsidiary Directive provisions, according to which the withholding tax can be eliminated provided that the following conditions are met:

(i) The beneficiary of the income is resident in Portugal or in:

a. Another EU country;

b. An EEA country bound to administrative co-operation similar to that applicable between EU countries; or

c. A country with which Portugal has concluded a DTT providing administrative co-operation similar to those applicable between EU countries;

(ii) The beneficiary of the income:

a. Holds at least 10% of the share capital or voting rights of the distributing company;

b. Holds the participation continuously for 12 months prior to the distribution of the dividends (or, if held for a lesser period, is kept until the period of 24 12 months is completed); and

c. Is subject to and not exempt from any of the CITs referred to in the EU Parent Subsidiary Directive, or a tax of a similar nature with a rate not lower than 60% of the Portuguese CIT rate.

(iii) The distributing entity is not a resident in a blacklisted jurisdiction.

It is important to refer that the participation exemption regime is not applicable if there is an arrangement or a series of arrangements which, having been put into place for the main purpose or one of the main purposes of obtaining a tax advantage that defeats the object or purpose of eliminating the double taxation of dividends, are not genuine having regard to all relevant facts and circumstances.

South Africa Small Flag South Africa

Broadly speaking, a dividend is any amount distributed (paid or payable) by a South African tax resident company for the benefit of any person regarding any share in that company.

By contrast, a foreign dividend means any amount that is paid or payable by a foreign company in respect of a share in that foreign company where that amount is treated as a dividend or similar payment by that foreign company for purposes of the laws of that particular company.

As a general rule, dividend income received by any person from a South African source will be exempt from tax. This exemption will not apply should the dividend income received fall into any of the exemption categories, such as: dividends distributed by a REIT, dividend in respect of an employee restricted equity instrument, dividends received or accrued by a company under a cession of the right to that dividend and a dividend received or accrued by a person for services rendered under a contract of employment.

Dividends tax is a withholding tax that is levied on the payment of any amount by way of a dividend, subject to certain exemptions. Dividends tax is triggered by the payment of a dividend, and is currently levied at the rate of 20%. While the company paying the dividend has the obligation to withhold dividends tax, the liability for the tax is that of the beneficial owner of the dividend. An exception to this general principle is where a dividend consists of a distribution in specie, resulting in the liability for the dividends tax falling on the company itself (if any), which means that it may not withhold the tax from the dividend distribution. There are various exemptions available in respect of dividends tax, subject to meeting administrative formalities within prescribed timeframes. The most notable exemption is in respect of dividends paid to a beneficial owner that is a South African resident company, pension fund or provident fund.

A foreign dividend is subject income tax unless an exemption or reduced rate applies. A foreign dividend is exempt from income tax under certain circumstances, including where:

  • it is received by a person who holds at least 10% of the total equity shares and voting rights in the company declaring the foreign dividend;
  • that person (receiving the foreign dividend) is a foreign company and the foreign dividend is paid or declared by another foreign company;
  • it is received by a controlled foreign company and that foreign dividend does not exceed the net income attributed to controlled foreign company; and
  • the foreign dividend is received or accrued in cash for listed shares.

Foreign dividends are subject to a further exemption from normal tax on the aggregate amount of foreign dividends not previously exempted. The maximum effective tax rate on a foreign dividend is 20%.

Spain Small Flag Spain

ii. Participation exemption for dividends and capital gains; and capital losses

Dividends obtained by Spanish entities either from resident or foreign entities may be exempt from taxation under the participation exemption regime. Both domestic and foreign entities dividends will be generally exempt when the following conditions are met:

a The recipient either owns at least 5% of the distributing entity or has an acquisition cost higher than EUR 20 million;

b Such stake has at least one year seniority (the one year seniority could be fulfilled afterwards).

c In the case of a foreign subsidiary an additional condition is required. In order for the exemption to apply, the foreign subsidiary should be effectively subject (and not exempt) from a tax similar to CIT at a nominal rate of at least 10%; this requirement is understood to be met when a tax treaty is applicable and it includes an exchange of information clause.

It must be noted that specific requirements are demanded in case of indirect participation through a holding entity.

Furthermore, capital gains resulting from the sale of shares in both, Spanish or foreign entities, would be generally exempt from taxation when requirements for participation exemptions are fulfilled. In case of sale of foreign subsidiaries, the minimum taxation requirement must be met during all the years in which the participation has been held.

Capital losses from shares that could benefit from the participation exemption are not tax allowed, unless they come from liquidation with certain requirements.

Switzerland Small Flag Switzerland

For companies, the participation reduction regime applies at the federal and cantonal level, meaning that the effective tax rate applicable to the dividends received is proportionately reduced as per the ratio of the net dividend income over the total net taxable income. To qualify for the participation reduction, the Swiss company must hold at least 10% of the participation or participation rights with a market value of at least CHF one million. As a result, such dividend income is usually virtually tax exempt.

The participation exemption applies irrespective of whether the dividends are paid by a resident or non-resident company.

For individuals, regulations provide for partial taxation of dividends. For federal taxation, dividends are taxable at 60% (if part of private assets) and at 50% (if part of business assets), when these participation rights are equivalent to at least 10% of the shares. The partial taxation at the cantonal level varies from a canton to another.

United States Small Flag United States

Yes. Under US tax law, corporations are generally allowed a deduction for dividends received from other taxable US corporations. The deductible amount is calculated as a percentage of the dividends received, depending on the level of ownership that the corporate shareholder has in the US corporation paying the dividend. Currently, the dividends received deduction is 50 percent of the dividend if the recipient owns less than 20 percent (by vote and value) of the stock of the payor corporation (resulting in an effective tax rate of 10.5 percent), 65 percent if the recipient owns at least 20 percent but less than 80 percent of the stock of the payor corporation (resulting in an effective tax rate of 7.35 percent), and 100 percent if the recipient owns 80 percent or more of the stock of the payor corporation.

Furthermore, dividends corporations receive from non-US corporations are not generally eligible for the dividends received deduction. However, if a corporation owns at least 10 percent (by vote and value) of the stock of a foreign corporation paying the dividend, the US corporation is generally entitled to a deduction for the untaxed US source portion of the dividends. And, as enacted as part of the TCJA to transition the US to a hybrid territorial tax system, certain domestic corporations that own at least 10 percent (by vote or value) of a foreign corporation are entitled to deduct 100 percent of the untaxed foreign-source portion of dividends received by the foreign corporation, provided the US corporate shareholder has met certain holding period requirements.

Zambia Small Flag Zambia

Yes it is taxed by way of withholding tax.

United Kingdom Small Flag United Kingdom

Until 2009 where a UK company received a dividend from a UK company the income was exempt from tax. However, dividends received from non-resident companies were taxed with credit for any foreign withholding tax and tax on the underlying profits. Following adverse rulings from the ECJ, in 2009 the UK introduced a general exemption system. UK and non-UK sourced dividends and other distributions received by a UK company or a UK permanent establishment are subject to corporation tax unless the distribution falls within a number of exemptions. The exemptions are drafted broadly such that their overall effect is to exempt all dividends from corporation tax unless they fall within certain anti-avoidance provisions called Targeted Anti-Avoidance Rules (TAARs). TAARs include rules that, for example, prevent the artificial transfer of value out of a company resulting from either an intra-group asset transfer otherwise than at market value or the payment of a dividend out of artificial profits.

Belgium Small Flag Belgium

Dividend income received by a Belgian company is in principle subject to a corporate tax at a normal rate. The Belgian participation exemption regime allows for a deduction of 95% of the received dividend amount, which results in an effective rate of 1,7%. The latter rate may be further reduced as the remaining taxable 5% may be offset with other tax deductions.

The following conditions must be met in order to benefit from the participation exemption regime:

a) The shareholding company must hold a participation of at least 10% in the share capital of the distributing company or the said participation must have an acquisition value of at least 2,500,000 EUR;

b) The shareholding company must hold (or commit to hold) the shares in the distributing company for an interrupted period of at least one year;

c) The distributing company must be subject to Belgian corporate tax, or to a similar foreign corporate tax regime.

If the tax base is insufficient in order to allow the deduction of 95% of the dividend, the excess may be carried forward to subsequent assessment years.

Dividends that are paid by a Belgian company or through a Belgian intermediary are in principle subject to a 30% withholding tax. Belgian domestic law provides for reduced rates under certain conditions. Provided that certain conditions are met, a company may credit the withholding tax against the corporate income tax that is due.

The withholding tax can altogether be avoided if the distributing company is a Belgian resident company in which the shareholding company holds (or commits to hold) a participation of at least 10% for an uninterrupted period of at least one year.

Panama Small Flag Panama

All companies who have a Notice of Operations, an Operations Code to operate in the Colon Free Zone (CFZ) or which operate in a petroleum free zone or any other duty free or special zone, or generate taxable incomes in the Republic of Panama will be subject to the payment of these taxes, according to the following rules:

Companies who have a Notice of Operations, or generate taxable incomes in the Republic of Panama.

  • 10% - Profits from Panamanian source.
  • 5% - Profits from foreign source or from exports, and from exempt income from paragraphs f and I of article 708 of the Tax Code.

Companies registered in special tax regimes, such as Colon Free Zone, Panama Pacific Regime, Petroleum Free Zone, are oblige to pay dividend tax at the rate of 5% without the consideration of the source of the income to be distribute.

When an individual distributes dividends or participation quotas it should first use up the income from Panamanian source, or local or internal operations, before distributing dividends or participation quotas from income coming from foreign operations or exports and from local income exempt from the Income Tax, as foreseen in the Tax Code, accordingly.

Subsequent distribution of dividends is not subject to dividend tax as long as the tax has been paid at the source.

The distribution of dividends or participation quotas to those companies that do not require a Notice of Operations or do not generate taxable income in Panama is excluded from the concept of local income.

Updated: October 9, 2019