High tax rates can damage companies to the point of making it impossible for them to meet their financial goals and prevent their growth. In this sense, tax havens have become. In this sense, tax havens have become the protagonists of the last decades due not only to the facilities for investment and confidentiality but to their legal and tax system that allows individuals or corporations that spend their money on these large territories to enjoy tax benefits. Panama corporations are the most widely used business option for those pressured by their country’s tax policies. They seek the more lenient tax policies of tax havens so their profits won’t diminish. Thanks to Panama’s unique geographical location and highly attractive tax system, Panama corporations became a legal remedy used by those who wish to pay fewer taxes when doing business. Panama corporations don’t have to make the annual presentation of their accounts, so they don’t have to pay accounting or auditing costs. However, that’s not all. These companies do not have to pay the value-added tax (VAT), a tax that has grown significantly in Latin American countries, nor tax from the proceeds from the sale of products or services performed abroad. These tax benefits are accompanied by exemption from:
- Tax on share capital.
- Tax on overseas property.
- Taxes on the issue of corporate shares, whether they are bearer or registered shares.
- Taxes on inheritances
- Taxes on capital gains.
- State taxes.
- Taxes on dividends from abroad.
- Taxes on interest earned on bank deposits.
- Stamp duty.