Panama Foundation Tax Information

Panama is a 100% “tax haven”. Panama Foundations offer the following tax advantages:

  • No tax reporting requirements.
  • No income tax.
  • No capital gains tax.
  • No interest income tax.
  • No sales tax.
  • No tax to beneficiaries.
  • No beneficiary transfer tax.
  • No capital tax.
  • No property tax (for non-Panamanian property).
  • No estate tax.
  • No gift tax.
  • No inheritance tax.
  • No stamp tax.
  • No succession tax.
  • No inventory tax
Flat Annual Panama Corporate Franchise Tax 

The only tax paid by Panama Corporations (or Panama Foundations) is the flat annual Panama corporate franchise tax of US$300 for Corporations and 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 (“taza unica”) is not paid on or before the due dates mentioned above, the entity 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 (“taza 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.

The above applies to all “entities” (corporations, foundations, or trusts) registered at the public registry of Panama.

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