The web page that the Panamanian Government uses to promote information to international investors (http://www.meetpanama.com.pa/) is very clear on “President Ricardo Martinelli’s pro-growth policy focus on long-term macroeconomic stability, fiscal discipline and continued infrastructure modernization is positioning Panama to deliver on the promise of even greater prosperity.”
Even though many people think of Panama as a tax haven, the perception is a little off, because even if international transactions and foreign income continue to be tax-free for Panamanian corporations, there are certain taxes that have to be collected and paid when a corporation does business within Panamanian territory.
Understanding the taxes generated by doing business within Panama is a must for every corporation owner, more so after the latest additions of new tax related laws approved in Panama. The latest modifications to our tax system are Law 8, dated march 15, 2010, and Law 33 ,dated June 30, 2010.
The major changes which affect the international commerce through corporations or persons residing in Panama established by the recent approved Law 33 of June 30 of 2010, which “adds one chapter to the Tax Code regarding Adequacy Standards to the Treaties or Agreements to avoid the Double taxation and adopts other tax measures” are the following:
