TAX BENEFITS OF PANAMANIAN CORPORATIONS

Panamanian Corporations are subjected to a territorial tax system, a regime that only requires payment of taxes for operations done or considered done within the territory of the Republic of Panama.  Under Panamanian Tax Law, commercial operations executed, taking place, or taking effects outside Panama will be considered offshore and are not taxable, without considering that these operations may be managed or directed from an office located in Panama.  Except for the annual corporate tax in the amount of USD 300.00 that all corporations and private interest foundations must pay, there would be no other tax obligations for Panamanian offshore corporations.

CORPORATE ANNUAL TAX IN PANAMA

Panamanian corporations have the obligation to pay annual corporate taxes in the amount of USD 300.00 , while only the first annual tax is USD 250.00 .

For corporations registered between January and June, June 30 of each year, will be the deadline for the annual tax payment, while for corporations registered between July and December, December 31 will be the deadline for paying annual corporate taxes.  For this purpose, registration date is that of the inscription in the Public Registry, as written in the stamped seal at the end of the Articles of Incorporation.

Corporate taxes not paid on time will have a USD 50.00 overcharge for each year due and a USD 300.00 fine for delays of two or more annual tax payments.