IMPORTANT NOTICE TO US PERSONS: US Persons (citizens or residents of the US) are required to report their interests in Panama Private Interest Foundations. International Relocation Firm does not offer Panama Private Interest Foundations to US Persons.
Panama Foundations offer the following tax advantages (for income earned outside of the territory of Panama):
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No Panama tax reporting requirements.
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No Panama income tax.
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No Panama capital gains tax.
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No Panama interest income tax.
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No Panama sales tax.
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No Panama tax to beneficiaries.
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No Panama beneficiary transfer tax.
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No Panama capital tax.
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No property tax (for non-Panamanian property).
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No Panama estate tax.
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No Panama gift tax.
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No Panama inheritance tax.
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No Panama stamp tax.
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No Panama succession tax.
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No Panama inventory tax.
Flat Annual Panama Corporate Franchise Tax
The only tax paid by Panama Foundations is the flat annual Panama corporate franchise tax of US$400 for Foundations.
According to the Law, the Panama corporate franchise tax payment deadlines are as follows:
Incorporation Date ………………Tax Payment Deadline
From 1 of January to 30 of June 30 : July 15
From 1 of July to 31 of December 31 : January 15
Late Payment Penalty:
If the flat annual Panama corporate franchise tax (“tasa unica”) is not paid on or before the due dates mentioned above, the entity will be charged a late penalty of US$50.00 per year that the tax is not paid.
Second Late Payment Penalty:
If the flat annual Panama corporate franchise tax (“tasa unica”) is not paid after 1 “deadline” period, the entity will be charged a second late penalty of US$300 for every additional “deadline” period missed thereafter, a US$300 late fee will be incurred.