Panama
Country: Panama
Region: Americas
Currency: US dollar (USD) (US$)
Languages: Spanish, English
Time Zone: UTC -5
Communications: Good
Formation Cost: 1000 - 2400 USD$
Formation Time: 4 - 6 days
Maintenance cost: 800 - 1000 USD$
Executive Summary: Panama has come a long way since the free-wheeling days of the 1990s, but it is still relatively tax-friendly. The service sector contributes more than 75% of the economy, which is based on banking, tourism, mining and commerce, alongside of course the famous canal, currently being enlarged for the nth time. The government is trying to make productive use of the canal's facilities with export processing zones and many investment incentives. The Colon Free Zone is very successful, accounting for more than 10% of GNP. Only locally-sourced income is taxed. It is reasonably easy to form corporations, and privacy is assured. There are no tax treaties, although a number are close to ratification, and Panama has entered twelve TIEAs. Withholding taxes apply only to locally sourced income. There is no capital gains tax but gains on real estate count as income.
Suitable for: Banking, Fund Management, Shipping, Aviation, Yachting, Trading Goods, Trading Financial, Intellectual Property/Licensing, Holding Companies, Property Ownership
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Company Purpose Stats:
Wealth Management: | |
Treasury Management: | |
Banking: | |
Insurance: | |
Fund Management: | |
Shipping: | |
Aviation: | |
Yachting: | |
Trading Companies Goods: | |
Trading Companies Financial: | |
Intellectual Property: | |
Holding Companies: | |
E-Commerce: | |
E-Gaming: | |
Property Ownership: |
Vehicle Types: Limited companies, public limited companies, trusts, branches, general partnerships and limited partnerships
Capital primary business districts: Panama City
Good Relationships: Canada, China, India, United States
Bad Relationships: Burma, Cuba, Iran, Korea (Democratic People's Republic of), Libya, Somalia, Sudan, Syria
Tax Burden - Business: Moderate
Tax Burden - Individual: Light
Headline tax rates: CIT 25% (energy, telecommunications, insurance, financial, mining and banking companies 27.5%) (offshore income 0%), PIT 15%-25%, VAT 7%
Treaty Jurisdictions: Barbados, Czech Republic, France, Ireland, Korea, Republic of, Luxembourg, Mexico, Netherlands, Portugal, Qatar, Singapore, Spain, United Arab Emirates, United Kingdom
TIEA Jurisdictions: Canada, Denmark, Faroe Islands, Finland, Greenland, Iceland, Norway, Sweden, United States
Information Links:
- Panama Lowtax Service Providers Directory
- Panama Tax-News
- Panama Treaty Updates
- Panama Lowtax Knowledgebase
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