Panamanian Corporations are a legal instrument that allows the adequate management of any assets that are destined to the business and fiscal planning of your companies.
Locally, the main advantage of corporations is that the shareholders are excluded from the personal responsibilities in the obligations of the company, maintaining their right to participation of the profits that the business may generate, but their largest advantage is observed in its use for international businesses, since Panama’s fiscal regime turns them in to excellent means for administration, with clear advantages in comparison to other instruments used in the business world.
With the purpose of incrementing the income from taxes, has taken legal measures that directly tax some of the extraterritorial activities of the Panamanian Corporations, pulling away from the territorial principal that has been the ruling base of the Panamanian tax law.
Any legal person that may require the Notice of Operation which is referred to in Law 5 of 2007 is obligated to retain the dividend tax or participation fee of ten percent (10%) of the amounts distributed to its shareholders or partners when they are from a Panamanian source and five percent (5%) when it is income from a foreign source or export operations….”
The Republic of Panama was formed in 1903 when it seceded from Colombia. The country is located in Central America on an isthmus that attracted the U.S. Army Core of Engineers in 1904. The Army Core of Engineers planned to establish a canal that would make it easier for boats to travel between the east and west coasts of North America. The Panama Canal was completed in 1914.
The Panama Canal has had a significant influence on how the Republic of Panama approaches business regulations. As a truly international country that deals with organizations all over the world, Panama created loose regulations that would let offshore businesses perform as they saw fit. Since the country earns most of its GDP from the canal tolls, it simply made sense for Panama’s government to open its doors to more businesses.
There are lots of offshore banking myths that prevent people from taking advantage of the benefits that an offshore account can offer. Once you know the truth about using offshore banks, though, you can make educated decisions that help you protect your assets from law suits and privacy invasion.