Panama is a 100% “tax haven”. Panama Foundations offer the following tax advantages:
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No tax reporting requirements.
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No income tax.
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No capital gains tax.
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No interest income tax.
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No sales tax.
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No tax to beneficiaries.
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No beneficiary transfer tax.
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No capital tax.
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No property tax (for non-Panamanian property).
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No estate tax.
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No gift tax.
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No inheritance tax.
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No stamp tax.
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No succession tax.
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No inventory tax
The only tax paid by Panama Corporations (or Panama Foundations) is the flat annual Panama corporate franchise tax of US$300 for Corporations and US$400 for Foundations.
According to the Law, the Panama corporate franchise tax payment deadlines are as follows:
Incorporation Date ………………Tax Payment Deadline
From 1 of January to 30 of June 30 : July 15
From 1 of July to 31 of December 31 : January 15
Late Payment Penalty:
If the flat annual Panama corporate franchise tax (“taza unica”) is not paid on or before the due dates mentioned above, the entity be charged a late penalty of US$50.00 per year that the tax is not paid.
Second Late Payment Penalty:
If the flat annual Panama corporate franchise tax (“taza unica”) is not paid after 1 “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.
The above applies to all “entities” (corporations, foundations, or trusts) registered at the public registry of Panama.