Even though the offshore companies are exempt from paying taxes in
For example, certain goods and services are taxed with a 7% VAT. The alcohol and the cigarettes are taxed with 10% and 15% VAT. The companies that have to register to VAT are making a monthly turnover above 3000 USD or an annual turnover above 36,000 USD.
The corporate incomes are taxed with 27.5% but certain industries and services are taxed with a higher rate. For example, the banking companies, insurance companies, mining companies, energy companies, telecom companies and financial companies must pay a 30 % tax rate until this year, 27.5 % until 2014 and then a corporate tax of 25%.
Dividends paid by the companies are taxed with 10% withholding tax on the usual shares and 20% on dividends on bearer shares.
The rates of taxes on the taxable incomes are depending on the amount of annual gains. Up to 11000 USD there is no tax, from the incomes between 11,001 and 50,000 there is a tax of 15% and for the incomes above 50000, an tax of 25% is applicable.
Social securities taxes must be paid by the employer and the employee. The rate of the tax paid by the employer is 12%, unlike the rate paid by the employee of 9%. It’s predicted that these rates will grow to 12.25 % and 9.5% after 2013.
The inheritance taxes are not required in
Being known as a holiday destination by many foreign and local investors, the government of
The real estate tax depends on the sum made year by year and starts with 1.75% from 30,000 USD to 50,000 USD, 1.95% from 50,001 USD to 75,000 USD and 2.10% on values above 50,000 USD.
The insurance premiums, air tickets, motorcycles, cars, cable television, pre-paid cellular phones are subject to an excise tax of 5%. If you need advice on the local taxes, as well as on the process to open a bank account in Panama, please contact us.
Our team of accountants in Panama can help you with additiional information.
Contact our specialists as needed.