Uses
Why form an NGO in Panama?
Any person that wants to formalize a social or humanitarian aid project or initiative, or that may want to promote education or a particular shared interest, can choose to create an NGO just as long as all requirements are met and approval from the authorities is granted.
It should be clear that an NGO couldn’t be used to make a profit: it can’t receive payments for its activities or for the services it provides, and it can only be financed by the donations it receives and by fees paid by its members. All activities that the NGO promoted should be aimed exclusively to gather funds for its social agenda.
The main tax advantage for using this platform is that NGO’s, constituted as non-profit entities, don’t declare or pay any type of tax in Panama, for which they should be registered before the revenue office. Likewise, any donation it receives is tax deductible within Panama.
Rates for registering a panamanian NGO.