Panama
NEWS
FACT FILE
Location Panama is an isthmus that joins the South American continent with Central America. It is located between Colombia and Costa Rica, bordering the Caribbean Sea with the Pacific Ocean.
Time Zone UTC-5.
Population 3,405,813.
Capital Panama City.
Airport Tocumen International Airport, Marcos A Gelabert International Airport, Enrique Malek International Airport, Scarlett Martinez International Airport, Panama-Pacifico International Airport, Bocas del Toro International Airport, Capt Manuel Nino International Airport.
Language Spanish, English.
Currency Balboa, US Dollar.
Dialing Code +507.
Centre's Expertise Maritime, Financial and Legal Services.
Political System Constitutional Democracy
Legal System Civil Law.
Personal Income Tax Up to US$11,000 Annually: 0%; US$11,000-50,000 Annually: 15%; Beyond US$50,000: US$5,850 plus 25% over the excess beyond US$50,000.
Corporate Income Tax 25% Except activities related to: electricity generation, telecommunications, re-insurance, financing companies, cement manufacturing and management of casinos, mining operations are taxed at 27.5%.
Exchange Restrictions None.
Tax Treaties For full details, please go to www.ifcreview.com/TIEA or www.dgi.gob.pa.
Permitted Currencies US$.
Minimum Authorised Capital There are no minimum, but the standard Authorised Capital is: US$10,000.
Minimum Share Issues One.
Shelf Companies Permitted.
Incorporation Time Scale 3 working days.
Incorporation Fees US$1,500.
Annual Fees Franchise Tax: US$300.
Minimum Number Three.
Residency Requirements No restrictions.
Corporate Directors Three.
Meetings/Frequency Not Applicable.
Disclosure Not Applicable.
Bearer Shares Permitted, but subject to immobilisation pursuant to Law 47 of 2013.
Minimum Number One.
Public Share Registry N/A.
Meetings Frequency N/A.
Annual Return If the activities are offshore, the company has the option of submitting annual returns and not paying any taxes, or not submitting the annual returns.
Audit Requirements If the activities are offshore, they are not necessary.
Registered Office Usually is the same as the Registered Agent.
Domicile Issues Not applicable if the company will not operate in Panama.
Company Naming Restrictions Company names cannot end with, or use, the following words: Limited, Ltd., Trust, Trustee, Foundation, Insurance, Reinsurance, Bank, Banking, Mutual Fund, Pension Fund, Brokerage, House, Investment Advisor, Stock Exchange, Clearinghouse, Forex, FX Trading among others, or any other word that means that the company is engaged in the Trust, Banking, Insurance, Reinsurance or Securities business.
ARTICLES
The Panama Papers: Determining the Future of Financial Services
  Mark Brantley, Deputy Premier of Nevis and Professor Gilbert NMO Morris consider the fallout from the Panama Papers and examine the role they will play in determining the future of financial services. (01/05/2016)
Panama Leaks: Exposing Private Information Serves an Ideological Agenda
  Daniel Mitchell and Brian Garst examine how in the midst of the controversy over the Panama Leaks the question of the legality of the use of such leaks is often overlooked. (01/05/2016)
Panama: Corporate Regulations Amendments Reinforce KYC Guidelines
  Ivette Martinez and Jorge Ventre examine how recent regulatory changes have reinforced Panama's strict KYC guidelines. (12/05/2015)
Latin America in a Time of Enlightenment
  Derek Sambrook considers the financial state of affairs in Latin America and examines whether the region is entering a time of enlightenment. (01/04/2015)
LATAM: The Other Side of the Road
  With signs of Latin America shrugging off its past and with a new sense of prosperity, Derek Sambrook examines how the region can adapt to external international pressures. (01/08/2014)
Panama Laws Benefit Multi-national and Regional Companies
  Ivette Martinez and Khatiya Asvat discuss the introduction of the regime for the establishment of multinational companies' headquarters in Panama which has proven to be beneficial for companies in the region and further afield. (01/01/2013)
Panamanian Private Foundations: Asking the Right Questions
  Rigoberto Coronado examines the workings of Private Foundations in Panama and provides the answers to the questions any investor must ask regarding setting up a private foundation in Panama (12/12/2011)
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FURTHER BACKGROUND INFORMATION
  Panama Tax Treaties
  Panama currently has 15 DTCs and TIEA agreements in place - read more...
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