All income generated outside of Panama is tax exempt, no matter if the capital is in name of a Panamanian juridical person or a local bank. Interests from bank accounts are also tax exempt.
http://www.presidencia.gob.pa/5183-Articulos-2-y-3-de-Ley-120-seran-derogados
http://www.presidencia.gob.pa/5186-gobierno-reitera-compromiso-con-territorialidad-fiscal
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.
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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….”
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