01
Corporate tax
Panama applies a territorial principle, but source follows the real operations rather than place of incorporation or payment receipt; the general corporate income tax rate is 25%, with special regimes, withholding and transfer pricing assessed separately
02
Owner taxation
The owner's residence, Panamanian and foreign income source, employment income, dividends, capital gains, foundation distributions, foreign assets, reporting and treaty position require a separate analysis
A tax rate is only one part of an international structure. Panama applies a territorial principle, but source follows the real operations rather than place of incorporation or payment receipt; the general corporate income tax rate is 25%, with special regimes, withholding and transfer pricing assessed separately.
03
VAT and indirect tax
The standard ITBMS rate is 7%, but applicability, other rates and exemptions depend on the supply; imports, customs, invoices, input recovery, payroll, municipal charges and stamp duties are calculated separately
04
Cross-border payments
Registration and a registered office do not determine management or income source. Directors, authority, contracts, people, assets, expenditure, decisions and actual performance should evidence the stated international or Panamanian model. Each bank sets its own risk appetite and reviews the UBO, ownership chain, tax residence, source of wealth and specific source of funds, contracts, counterparties, countries, currencies, projected turnover and business connection with Panama.
05
Evidence and control
Constitutional documents are executed through Panamanian counsel and a notary and filed with the Public Registry; actual operations also test the resident agent, RUC, operating notice, municipal and sector permits, accounting and recurring obligations. A private interest foundation should not be used as an ordinary trading company. Its charter, regulations, founder, foundation council, protector, beneficiaries, distributions, control, resident agent, AML, tax classification and bank account form one design.
FAQ
FAQ
Where should a tax strategy project in Panama start?
Panama applies a territorial principle, but source follows the real operations rather than place of incorporation or payment receipt; the general corporate income tax rate is 25%, with special regimes, withholding and transfer pricing assessed separately
Can formation or account opening be guaranteed?
This material is general information. Formation, licensing, tax outcomes and account opening depend on the facts and the decision of the competent authority or financial institution.
Why are tax and banking reviewed together?
Panama applies a territorial principle, but source follows the real operations rather than place of incorporation or payment receipt; the general corporate income tax rate is 25%, with special regimes, withholding and transfer pricing assessed separately. Each bank sets its own risk appetite and reviews the UBO, ownership chain, tax residence, source of wealth and specific source of funds, contracts, counterparties, countries, currencies, projected turnover and business connection with Panama.
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Related routes
- Company formation
- Open primary source
- Bank accounts and private banking
- Open primary source
- Private wealth: foundations and trusts
- Open primary source
- Panama private foundation bank account
- Open primary source
- Relevant practice
- Open primary source