FOUNDATION TAXES

To keep a corporation or foundation in good standing with the Panamanian Government, each entity must pay a flat annual corporate franchise tax ("tasa unica") of US$300 to the Panamanian Government ( Public Registry).

If the annual corporate franchise taxes are not paid, the Public Registry will not permit any changes to the entity at the Public Registry, and will not allow you to obtain any Certificates of Incorporation (certificate of good standing) for the entity, which are generally required by financial institutions from time to time, as part of their due diligence procedures/policies. In addition, certificates of good standing are generally required for transferring of property held within corporations and/or foundations.

According to Panamanian Law, the government corporate franchise tax payment deadlines are based on the Incorporation date:

Incorporation Date: From 1 of January to 30 of June 30 : July 15
Tax Payment Deadline: From 1 of July to 31 of December 31 : January 15

Late Payment Penalty:

If the annual government corporate franchise tax ("tasa unica") is not paid on or before the due dates mentioned above, the entity will be charged a late penalty of US$50.00.

Second Late Payment Penalty:

If the annual corporate franchise tax ("tasa unica") and first late penalty is not paid after the second "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.

TAX FILING FEE

Operational Tax Filing: this is a tax filing for operational entities (corporations or foundations), in other words, entities that are operating physical businesses or generating income from sources within the territory of the Republic of Panama. This type of tax filing requires a detailed declaration of income, duly audited by a Panamanian Certified Public Accountant (CPA). The costs for operational tax filings can vary from $250 or more depending on the nature and size of the business.

Non-Operational Tax Filing: this is a tax filing for Non-Operational entities (corporations or foundations), in other words, entities that are operating offshore, outside of the territory of the Republic of Panama, or entities that are not operating businesses or generating income from sources within the territory of the Republic of Panama. This type of tax filing requires a simple declaration of non-operation (or offshore operation), duly signed by a Panamanian Certified Public Accountant (CPA). The costs for Non-Operational tax filings are a flat $65 per filing.

All entities (operational or non-operational) must file annually, from January 1st to March 31st.

NOMINEE DIRECTORS FEES

Nominee directors or nominee council members are an optional service provided by our law firm. If requested, our law firm provides the directors or council members that are required for the formation of the corporation or foundation. The fees for nominee directors or council services are $155 per year, starting one year from the date of incorporation.

RESIDENT AGENT / OFFICE FEES

To keep a corporation or foundation in good standing with our law firm, each entity must pay an annual resident agent / office fee of US$300 per year, starting one year from the date of incorporation. The resident agent / office is the law firm or attorney that represents the entity (corporation and/or foundation) and the name of the law firm or attorney and office address of the entity is stated on the public deed of the entity at the Public Registry.

MAIL FORWARDING SERVICES

Mail forwarding services provides you with a post office box, and a physical address in Panama where your corporation and/or foundation may receive post mail correspondence or courier packages. As the mail and/or packages are received, they are forwarded to you as per your instructions. If you have subscribed to the Mail Forwarding Service, then you paid for the first year of service at the initiation of your subscription. To renew your Mail Forwarding service, there is an annual fee of $300.

Contact us: info@panamalegalconsultants.com