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Panama

Taxes

A Panama Private Interest Foundation is exempt from taxes, provided that no residents of Panama benefit from the Foundation and no physical assets held in the Foundation are located in Panama.
  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • 0% Offshore Income Tax Rate
  • 25% Corporate Tax Rate
  • 0% Capital Gains Tax Rate
  • 0% Dividends Received
  • 0% Dividends Withholding Tax Rate
  • 0% Interests Withholding Tax Rate
  • 12.5% Royalties Withholding Tax Rate
  • 0 Losses carryback (years)
  • 0 Losses carryforward (years)
  • 25% Personal Income Tax Rate
  • 7% VAT Rate
  • 25 Tax Treaties

Country details

Panama
PAB
Panama City
North America
Spanish (Panama), English
3,410,676

The Republic of Panama is a country located in the southeast of Central America, in the isthmus of Panama, that unites South America with Central America.

It limits the North with the Caribbean Sea, the South with the Pacific Ocean, to the East with Colombia and to the West with Costa Rica. Its mountainous territory is only interrupted by the Panama Canal.

It has a population of over 4 million inhabitants, which half live in the metropolitan area of its capital, Panama City. Its official language is Spanish. Its legal tender currencies are the US Dollar (USD) and the Balboa (PAB), which is pegged to the Dollar at a 1:1 ratio.

Panama is a presidential representative democratic republic, whereby the President of Panama is both head of state and head of government.

Its economy is one of the most stable in Latin America. Its main economic activities are financial, tourism, logistics services and to a lesser extent agriculture and livestock.

Regarding the primary sector, most of its agricultural production is destined for export. Its main crops are sugar cane, bananas, rice, maize, coffee, and tomato. Panama also exports a wide variety of timber, where mahogany stands out.

Its conglomerate of transport and logistics services are oriented towards world trade, whose epicenter is the Panama Canal, where there are ports of transshipment of containers, free zones of commerce, railroad and the largest air hub of passengers of Latin America.

Tourism represents one of the main activities, with over 2 million tourists per year, mainly for business, beaches, and commerce. Most of the tourists come from the US, Canada, Europe, Central America, and South America.

The financial sector is one of the main economic activities of the country. Panama's banking industry is the most modern and largest of Latin America with one of the strictest banking and financial laws worldwide. In addition, its territorial tax regime and freedom of

Tax treaties

Country Type Date Signed
Greenland TIEA 2012-11-12
Qatar DTC  2010-09-23
Denmark TIEA 2012-11-16
Barbados DTC  2010-06-21
Korea, Republic of DTC  2010-10-20
United Kingdom DTC  2013-07-29
Luxembourg DTC  2010-10-07
Canada TIEA 2013-03-17
Singapore DTC  2010-10-18
Ireland DTC  2011-11-28
Italy DTC  2010-12-30
Sweden TIEA 2012-11-12
Norway TIEA 2012-11-12
Spain DTC  2010-10-07
United Arab Emirates DTC  2012-10-13
United States TIEA 2010-11-30
Iceland TIEA 2012-11-12
Israel DTC  2012-11-08
Finland TIEA 2012-11-12
Czech Republic DTC  2012-07-04
France DTC  2011-06-30
Mexico DTC  2010-03-24
Netherlands DTC  2010-10-06
Portugal DTC  2010-08-27
Faroe Islands TIEA 2012-11-12

Tax treaties Map

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Services

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