| The Republic of Panama is one of the world’s | | | | 4. No Tax Returns Required for Corporations in |
| largest and most established offshore corporate | | | | Panama |
| havens. It is second only to Hong Kong, with over | | | | Panama tax returns are not required within Panama |
| 400,000 registered corporations. For years, | | | | for all corporate income earned in other countries by |
| corporations in Panama have been recognized around | | | | the Panama Corporation. There is no need to file any |
| the world as an offshore vehicle for International | | | | financial report or Panama tax return in Panama as |
| Business and Asset Protection. | | | | long as the Panama Company does not operate within |
| Panama’s financial sector provides excellent | | | | Panama. In addition, by Panama Law, corporate funds |
| facilities with most of the world’s leading banks | | | | and offshore profits can be invested anywhere in the |
| being represented. All business in Panama is | | | | world without being taxed. |
| conducted in U.S. dollars and English is widely spoken. | | | | 5. Low Annual Corporate Tax |
| The most compelling reasons for forming a | | | | Panamanian Corporations must pay an annual |
| Corporation in Panama are: | | | | corporate tax (referred to as Tasa Unica) of $300. |
| 1. Corporations in Panama offer Asset Protection | | | | Corporations in Panama have both reasonable |
| A Panama Corporation can protect assets by offering | | | | formation and maintenance fees. |
| true anonymity of its shareholders. Corporations in | | | | 6. Business License is not required to Operate a |
| Panama are not required by law to file any changes to | | | | Panama Corporation Internationally |
| ownership once their registration is complete. | | | | To conduct business internationally, a non-resident |
| Panama Companies may issue Registered or Bearer | | | | Corporation in Panama does not require a commercial |
| shares, preferred shares and non-voting shares. | | | | business license. |
| Regardless, the name of the shareholder is not | | | | 7. No International Trade Tariffs Imposed on any |
| required to be registered in Panama’s Public | | | | Panama Company |
| Registry. This ensures total anonymity. | | | | Traders in Panama are free to import from and |
| Panama bank secrecy laws are some of the | | | | export to all friendly countries, regardless of their |
| strongest in the world. Panama law protects both | | | | social-political systems. Trade policy in Panama |
| residents of Panama and foreigners with full | | | | includes free ports for export/ re-export, Export |
| confidentiality and privacy. Further, Panama law states | | | | Processing Zones, and low duties on certain staples |
| both civil and criminal penalties for disclosure. In | | | | that are not produced locally, including specific products |
| Panama, even minor infractions of bank laws that | | | | for the tourist trade. |
| pertain to secrecy are met with severe retribution. | | | | 8. A Corporation in Panama does not need to hold |
| 2. No Restriction on the Owners of the Corporation in | | | | annual meetings of Directors or Shareholders |
| Panama | | | | Directors and Shareholders of a Panama Corp may |
| The Owners, Directors and Officers of a Panama | | | | attend the meetings personally, by proxy, by phone or |
| Corporation don’t have to be Panamanian. In fact, | | | | by any other electronic means. Shareholders and/or |
| the shareholders, directors and officers of a Panama | | | | directors of a Panama Company may hold their |
| Company may be of any nationality and residents of | | | | meetings in any country. |
| any country. | | | | 9. No Capital Requirements necessary for a Panama |
| 3. No Income Tax on Foreign Sourced Income with a | | | | Company |
| Panama Company | | | | Panama Corporations do not require paid-in capital. In |
| A Panama Corp is not subject to income tax in | | | | other words, funds do not need to be deposited and |
| Panama for all income earned outside of Panama. This | | | | held in reserves until the corporation is dissolved. |
| means full exemption from taxes on any business | | | | 10. Physical Security in Panama |
| activity or transaction performed outside of Panama. | | | | Panama is not subject to earthquakes & hurricanes as |
| The law in Panama regards an export as the sale of | | | | are many Caribbean offshore jurisdictions. Since |
| goods outside the national territory or a sale within the | | | | constant access to your money is critical this is an |
| domestic market of certain goods manufactured | | | | immense benefit. |
| locally, if they are sold to companies that export 90% | | | | BONUS: Corporations in Panama do not get taxed (in |
| or more of their production to foreign markets. | | | | Panama) for Inheritance, Succession or Gift Taxes. |