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Panama Business, Taxation and Offshore Information

An Independent Country with a Canal

The Republic of Panama lies between Colombia and Costa Rica and has a population of 4.1 million and a land area of 76,000 sq. km. Panama is a sovereign democracy with a presidential style of government.  The current president, Juan Carlos Varela, is a former businessman. The climate is tropical.

Panama was part of Colombia until 1903, when, with backing from the United States, it declared its independence. The USA gained the rights to start working on a canal. Work began in 1903 and was completed in 1914. In 1999, the canal and all its US facilities and bases reverted to Panama, lending a major economic benefit to the country.

The official language is Spanish, but English is often used in business circles. Panama's official unit of currency is the balboa (PAB), which is pegged at parity to the dollar. However, there is no Panamanian paper currency and even coins are a mixture of US cents and Panamanian centesimos. Hence the US dollar is the de facto official currency for all but minor transactions. More »

 

Panama Knowledge Base

Panama: Country and Foreign Investment
A quick overview of Panama - its history, geography, and business advantages.
Panama Executive Summary »
Panama Geography »
Panama Population, Language and Culture »
Panama Government »
Panama Economy and Currency »
Panama Entry and Residence »
Panama Business Environment »
Panama Import of Foreign Capital »
Panama Foreign Investment Regime »
Panama Stock Exchange »
Panama Free Zones »

Panama: Types of Company
A look at various types of company in Panama, providing options to suit different business needs.
Panama Corporation (Sociedad Anonima) »
Panama Foreign Corporation »
Panama General Partnership »
Panama Limited Partnership »
Panama Civil Partnership »
Panama Commandite Company »
Panama Foundation »
Panama Trusts »

Panama: Offshore Business Sectors
The key sectors of Panama's offshore economy.
Panama Offshore Business Introduction »
Panama Banking »
Panama Insurance »
Panama Trade Marketing and Distribution »
Panama Ship Management and Maritime Operations »

Panama: E-Commerce
A description of how e-commerce operations are enabled in Panama, and how the offshore tax regime can best be utilised for e-commerce.
Panama E-Commerce Introduction »
Panama Facilities »
Panama Legislation »
Panama Offshore Activities »

Panama: Offshore Legal and Tax Regimes
This section looks at available offshore operations in Panama and the criterion required for obtaining offshore tax status.
Panama Offshore Introduction »
Panama Forms of Offshore Operation »
Panama Tax Treatment of Offshore Operations »
Panama Taxation of Foreign Employees of Offshore Operations »
Panama Exchange Controls »
Panama Offshore Entities »
Panama Shipping Registry Fees »
Panama Employment and Residence »

Panama: Law of Offshore
A hub for information about the main laws and statutes affecting offshore and non-resident businesses in Panama.
Panama Table of Statutes »
Panama Banking Law »
Panama Shipping Law »
Colon Free Zone »

Panama: Labour Regulation
An analysis of employment law, industrial relations, and social security schemes in Panama.
Panama Regulatory Environment »
Panama Work Permits »

Panama: Domestic Corporate Taxation
A guide detailing the scope and rate of taxes affecting companies in Panama.
Panama Corporate Taxation Introduction »
Panama Scope of Income Tax »
Panama Income Tax Rates »
Panama Calculation of Taxable Base »
Panama Filing Requirements and Payment of Tax »
Panama Withholding Tax »
Panama Corporate Real Estate Taxes (Capital Gains) »
Panama Corporate Stamp Duty »
Panama Commercial License Tax »

Panama: Personal Taxation
An overview of applicable taxes for individuals in Panama.
Panama Residence and Liability for Taxation »
Panama Income Tax »
Panama Social Security Taxes »
Panama Real Estate Taxes (Capital Gains) »
Panama Stamp Duty »
Panama Value Added Tax »

Panama: Double Tax Treaties
Treaties and international agreements that Panama has in place, to mitigate the effects of double taxation.
Panama Tax Treaty Introduction »
Panama Table of Treaty Rates »
Panama Other International Agreements »

Panama: Related Information
Other useful information pertinent to Panama.
Panama International Law »
Panama Banking Confidentiality »
Panama Canal Silicon Valley »
Map of Panama »