Information Guides

Tax in Panama for companies IBC

Tax in panama for companies IBCCompanies that incorporate in Panama have a leg up in terms of financial privacy as opposed to those that don’t. But the benefits go beyond confidentiality, limited personal liability, and minimal government regulations.

Panama’s reputation as a tax haven is well known, that is why more and more companies are deciding to incorporate Panama as a way to make a real profit and develop stable business strategies in an ever-growing economy.

Tax in Panama for IBCs, or lack thereof, provides a myriad of advantages for financial groups looking to establish their headquarters or franchises in a place where hard work is rewarded and international corporations are more than welcome.

  • IBCs don’t have to pay Value Added Tax (VAT).
  • Companies don’t pay any State Taxes.
  • Panama’s Laws on taxes are extremely beneficial for those corporations that don’t sell goods or services inside Panamanian territory: they are tax exempt.
  • IBCs don’t pay taxes on their income even if it is deposited in a bank in Panama.
  • The properties companies own abroad are not subject to Personal Income Tax.
  • The only Tax in Panama that IBCs are subject to is an Annual Franchise Rate of US$300, which is a flat rate, meaning it is completely independent of the generated income of a company.
  • Inheritances are completely tax-free and stamp duty exempt.
  • Taxable income is that derived from financial activities which take place within the territory of Panama since it is considered a source of income for the country.
  • Double Tax Treaties are in place in several countries. These treaties offer several benefits and can enable companies to apply for a tax grant in their countries of residence.

Tax in Panama is extremely lenient, which means that corporations can increase their profits and grow faster than they would in any other part of the world.

It is always advisable to incorporate with Panama Lawyers due to the fact that they have the expertise and the knowledge to take your corporation to the next level.

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