Non-resident corporations (offshore) in Panama enjoy the following tax benefits:

- No Reporting Requirements or Offshore Income Taxes: Panama does not impose any tax the offshore Panamanian corporations (Panama has a territorial tax system and income taxes are only produced in commercial activities in the territory of Panama).

- No Income Tax: Panamanian corporations do not pay taxes on capital gains from income sources outside of Panama.

- No tax on capital gains: Panama corporations do not pay taxes on capital gains on profit from the purchase and sale of securities traded outside Panama ( purchase and sale of securities listed on stock markets out of Panama).

- No tax on interests: Panama corporations do not pay taxes on any income earned on bank interest, either within or outside Panama (no tax on interest earned on savings accounts or certificates of deposit in Panama).

- No Sales Tax: Panama corporations do not pay taxes on sales of products or services that are conducted outside of Panama.

- No tax by issuing shares of the Company:  Panama corporations do not pay taxes on the issue of shares in either bearer or nominative.

- No tax on dividends for the shareholders: the shareholders of offshore corporations in Panama do not pay taxes on dividends, income generated from sources outside of Panama.

- Fixed Annual Corporate Tax patent (Flat Rate): Corporations in Panama must pay an annual tax patent $ 300.00 to remain in force. The closing date for payment depends on the date on which the institution was established. If the entity is established between 1st. January to June 30, the tax due on July 15. If the entity is established between 1st. July and December 31, then the time to pay expires on January 15.

Penalty for Delay in Payment: If the fee is not paid on or before the above date, the entity will be fined of US $ 50.00 per year that the tax was not paid.

Penalty for Second Delay in Payment: If the fee is not paid after two periods of "deadline" will be placed on the entity a second delay penalty of $ 300 per year for each additional period not paid.

The Fixed Annual Corporate Tax patent tax and penalties mentioned above apply to all "entities" (corporations, foundations, trusts) registered in the Public Registry of Panama.

The tax information on this page is for informational purposes only. A specialist should be hired for a consultation in matters of taxation.