Panama is a 100% "tax haven". Panama Foundations offer the following tax advantages:
No tax reporting requirements.
• No income tax.
• No capital gains tax.
• No interest income tax.
• No sales tax.
• No tax to beneficiaries.
• No beneficiary transfer tax.
• No capital tax.
• No property tax (for non-Panamanian property).
• No estate tax.
• No gift tax.
• No inheritance tax.
• No stamp tax.
• No succession tax.
• No inventory tax
Flat Annual Corporate Franchise Tax
The only tax paid by Panama Corporations (or Foundations) is the flat annual corporate franchise tax of US$250.
As of the 26th of December 2002, through new law number 61 of 2002, the government of Panama has officially raised the flat annual corporate franchise tax ("taza unica") from US$150.00 per year to US$250.00 per year.
According to the Law, the corporate franchise tax payment deadlines are as follows;
Incorporation Date ..................Tax Payment Deadline
1 January - 30 June ................ 30 June
1 July - 31 December .............. 31 December
Late Payment Penalty:
If the flat annual corporate franchise tax ("taza unica") is not paid on or before the due dates mentioned above, the entity be charged a late penalty of US$50.00 per year that the tax is not paid.
Second Late Payment Penalty:
If the flat annual corporate franchise tax ("taza unica") is not paid after 1 "deadline" period, the entity will be charged a second late penalty of US$250.00.
The above applies to all "entities" (corporations, foundations, or trusts) registered at the public registry of Panama .
Panama Foundations Law
Business people, investors and others using the Panamanian jurisdiction, will discover that Panama provides the best infrastructure and legal environment in the world to achieve their business, financial, estate, or asset protection objectives from a strategically located, reputable international banking and financial center. |
