The Czech Republic is to submit to the government the first two tax information exchange agreements between the nation and offshore jurisdictions. Meanwhile, Luxembourg has announced it will sign bilateral tax agreements with Barbados and Panama. Finally, Spain and Germany have signed a new double taxation agreement.

The Czech Republic has signed TIEAs with Guernsey and the Isle of Man, according to a statement, bringing tax relations into line with the OECD model.

“It is in the interest of the Czech Republic to conclude similar agreements as soon as possible. Currently we have agreements in negotiation with three other countries,” said finance minister Miroslav Kalousek.

Meanwhile, Luxembourg’s governing council has adopted a bill providing for the approval of bilateral tax agreements with Barbados and Panama. The bill also includes the approval of amendments to multiple existing bilateral tax treaties with modifications to the existing fiscal agreements in place with San Marino, Japan, Sweden, Portugal and Hong Kong.

Finally Spain and Germany have signed a new DTA, to replace one concluded between the two countries in 1966, one of Germany’s oldest DTAs. A new accord was signed, instead of merely updating the previous one, due to economic developments in Spain.

The agreement includes a provision to encourage investment through the withholding tax rate levied on dividends from interstate participation having been reduced from 10 per cent currently to 5 per cent.

The agreement will enter into force after ratification procedures.