• Panama Tax Features

  • Taxable Basis
    Both tax resident and non-resident companies are taxed only on income generated in Panama

    Taxable Period
    Calendar or accounting year

    Corporation Tax Rate(s)
    25% but for companies over taxable revenues of US$1.5m an alternative tax may apply

    Ordinary Tax Losses
    Can be carried forward for 5 years (subject to restrictions). No carry back

    Capital Gains
    Taxable

    Capital Gains Tax Rate(s)
    10% plus 3% withholding tax (5% withholding tax for securities)

    Capital Losses
    Not deductible from capital gains

    Stamp Duty
    Yes

    Capital Duty
    No

    Other Taxes
    • Notice of Operations Tax at 2% (1% for companies in free zones or special trade zones) on equity with a minimum liability of US$100 and maximum US$60,000 (US$50,000 for companies in free zones and special trade zones)
    • Transfer tax on Panama real estate at 2%
    • Real Property Tax on Panama real estate at 1.75% - 2.1%

    VAT
    Yes

    VAT Standard Rate
    7%

    VAT Reduced Rate(s)
    N/A

    VAT Registration Threshold
    US$36,000

    VAT Filing & Payment
    Monthly

Compare Panama to other jurisdictions and see the difference in corporation tax rates, tax residency requirements, VAT rates, capital gain taxes, etc.

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