🇵🇦 PanamaCompany Establishment/Offshore Registration Highlights
Panama adopts territorial taxation, generally not taxing foreign-sourced income; Sociedad Anónima (S.A.) is a common international structure. An annual fixed license tax (tasa única) must be paid. In recent years, UBO private registration and accounting record requirements have been strengthened according to FATF/OECD standards. Rules are continuously evolving; please refer to the latest announcements from the Panama authorities (Public Registry/DGI).
| Common Company Types | S.A. (Public Limited Company) / SRL |
|---|---|
| Corporate income tax | Territorial taxation; foreign-sourced income generally taxed at 0%; domestic income taxed at 25%. |
| Estimated establishment costs | Approximately US$1,000–US$3,000 (first year) |
| Annual maintenance | Annual franchise tax (tasa única) is approximately US$300; registered agent (lawyer) required. |
| Substance/Reporting Requirements | UBO private registration, retention of accounting records, KYC; CRS |
| Suitable for purpose | Holding, asset protection, trade, real estate holding |
| Bank account opening | Account opening reviews are stringent, requiring comprehensive KYC and source of funds explanation. |
| Recent Changes | In recent years, private registration of UBOs has been introduced, along with strengthened accounting records and compliance rules. |
Key considerations
- Territorial tax exemption applies only to foreign-sourced income; domestic income is still taxable, and source determination must be conducted with caution.
- In recent years, requirements for UBO registration and accounting records have tightened, reducing the level of 'confidentiality' compared to the past.
- Home country CFC/substance taxation rules may still apply; should not be considered as overall tax exemption.
General Process
- Establish an S.A. and appoint directors through a Panama lawyer (registered agent).
- Register UBO and set up accounting record mechanisms.
- Open a bank account and prepare source of funds documentation.
- Pay the tasa única annually and maintain the registered agent.
Frequently Asked Questions
Does a Panama company have to pay taxes on money earned abroad?
Panama adopts territorial taxation, generally not taxing foreign-sourced income; however, attention must be paid to source determination and home country tax rules; professional consultation is advised.
Can a Panama company still hold assets anonymously?
There are existing UBO private registration and KYC requirements, allowing authorities and agents to access beneficial ownership information; confidentiality should be understood according to current regulations.
Official sources：Dirección General de Ingresos (DGI) — Panama · Data date：2026-06。This page serves as a neutral compilation of publicly available information for reference only, notTax / LegalRecommendations are based on the latest official announcements.