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PANAMA TAXES,
RIG@ORIGUA.COM
- Panama new homes
don't pay property taxes for 20 years. The annual percentage of
assessment is 2.10% of the property's value. Any land worth less
than $20,000 is exempt.
- 76 banks in operation,
38 of which are licensed as full-service banking institutions.
Two of them are owned by the government of Panama: Caja de Ahorros and
Banco Nacional de Panama.
- Panama bank
interest, interest from savings accounts, Panamanian securities, loan
income, and time deposits are tax free.
- Foreign income
doesn't create any tax liability.
- All retired
foreigners living in Panama pay no taxes on income made abroad.
- All income made
within Panama by domestic corporations is subject to income tax. The first $3,000 is
exempt. Thereafter, the income tax is progressive from 20% to
40%. The tax is based on the territorial nature of the
corporation. If a foreign resident of Panama conducts business
from Panama, and generates income in Panama, some of the income is
taxable.
- See a tax advisor or
attorney in Panama.
- If you're a U.S.
person, you must report all income generated worldwide, from whatever
source derived. See your tax advisor.
- The Fraser Institute
in Canada has rated Panama high on the list of the most free economic
environments due to it's domestic and international tax policies.
- The Organization for
Economic and Community Development (OECD) pressures low-tax or no-tax
countries to stop competing with the high-tax jurisdictions.
They do this by imposing labels, such as "money laundering" and
political intimidation. The Panama position to this privacy
threat is that demands for transparency, and disclosure, must be
consistent across all countries. And since it's not equally
demanded, Panama doesn't participate in the race to the bottom by
forfeiting privacy and it's tax regime. Furthermore, Panama's
independence from the U.S., the British and the EU places it secure
from the usual political spine of the jelly variety.
- Decree 238 was passed
in 1970 removing controls of currency and apply a very liberal banking
law. There's an exemption from income and interest on savings
accounts and in business transacted offshore.
- What activities are
exempt? Let's look at a few:
- When operations are
abroad and the management office is in Panama.
- Invoicing from Panama
for products and services sold and distributed abroad. The
product doesn't travel through Panama.
- Interest from time
deposits are tax free.
- No inheritance tax.
- No gift tax on assets
owned outside Panama.
- Vessels traveling
through the Panama Canal, embarking/disembarking, air transportation
and travel through international waters.
- Dividend distributions
from Panamanian entities when income was produced outside Panama.
- Sales commissions,
interest income, royalties and outside income are not taxable.
- Dividends from Panama
corporations are free from income tax.
What is taxed in Panama?
The key is WITHIN PANAMA.
- Salaries/wages
- Bonuses
- Profits
- Trademarks
- Securities
- Capital Gains
- Royalties
- Copyrights
What's tax-deductible?
- Medical expenses
- Education expenses
- Donation to charities
- Interest paid on home
mortgages
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