As many foreign businesses are aware, Panama offers a great jurisdiction for business large and small. The region has an attractive fiscal system, free trade zones and thriving service sector. Additionally, the strategic importance of the Panama Canal is a crucial drawcard for investors. These factors create the ideal conditions for a thriving company. It is no surprise that Panama is the registered domicile for over 500,000 corporations.
Panama is a country globally recognized as being one of the most welcoming and attractive countries in the world with respect to commercial activities. A particularly generous approach to taxation has enabled Panama to become the host country for many of the world’s biggest corporations headquarters, including BMW, Heineken and many more.
This is perhaps best demonstrated by the fact that offshore companies need only pay an annual tax of USD$300. Taking advantage of the country’s tax incentives allows businesses to operate in a highly supported business climate, and have access to both Northern and Southern American trading partners.
It is also a country with a growing influence worldwide. Panama has signed DTAs with 10 countries including Holland, Luxembourg, Singapore, South Korea and Spain to reduce withholding tax on payments abroad. Additionally, Panama has signed FTAs with 11 countries including Mexico, Chile, Singapore, Taiwan and USA.
Before beginning operations in Panama, it is best you have a sound understanding of the accounting and taxation requirements. That’s why our senior accountant in Panama has provided an informative presentation above.
For more information about our accounting and taxation services in Panama, please get in contact with our local team.
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