Share on LinkedInShare on LinkedIn

ARTICLE · 14 FEBRUARY 2017

Update On Panama Entities

CLD Legal
Explore more from CLD Legal

The Republic of Panama has a Tax System that is based on the Territorial Principle of Taxation. This principle that Panama has embraced means that only Panama-source income is taxed.

PanamaTax
Ricardo Cambra La Duke
Ricardo Cambra La Duke

The Republic of Panama has a Tax System that is based on the Territorial Principle of Taxation. This principle that Panama has embraced means that only Panama-source income is taxed.

An entity or an individual, which carries its activities outside or from Panama, will escape the obligation to file tax returns and further pay Income Tax on its foreign source income. However, a Panama company or private foundation do need to pay the Government of Panama an Annual Fee of $300.00 for it to be kept in good standing notwithstanding from where the income comes from.

By means of Law 52 of 2016, Article 318-A of the Tax Code of the Republic of Panama is amended, specifically by adding suspensions of corporate rights for the following reasons:

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Reglamento De Sustancia Económica: Decreto Ejecutivo No. 32

La República de Panamá aprobó la Ley No. 526 de 28 de mayo de 2026, la cual introduce reglas y requerimientos de sustancia económica en Panamá, aplicables únicamente a entidades integrantes de Grupos Multinacionales que obtengan rentas pasivas de fuente extranjera (la “Ley”). Dicha ley fue reglamentada mediante Decreto Ejecutivo No. 32 del 2 de septiembre de 2026. Toda esta normativa entrará en vigencia a partir del período fiscal 2027.
PanamaTax
Icaza Gonzalez-Ruiz & Aleman
Icaza Gonzalez-Ruiz & Aleman
Article

Economic Substance Regulations: Executive Decree No. 32

The Republic of Panama approved Law No. 526 of May 28, 2026, which introduces rules and requirements of economic substance in Panama, applicable only to entities that are members of Multinational Groups that obtain passive income from foreign sources (the “Law”). This law was regulated by Executive Decree No. 32 of September 2, 2026. All these regulations will enter into force as of the 2027 fiscal period.
PanamaTax
Icaza Gonzalez-Ruiz & Aleman
Icaza Gonzalez-Ruiz & Aleman
Article

Régimen De Sustancia Económica Para Grupos Multinacionales

Panamá aprobó la Ley 526 de 2026, que introduce requisitos de sustancia económica para entidades panameñas integrantes de grupos multinacionales que obtengan rentas pasivas de fuente extranjera. La norma, vigente a partir del período fiscal 2027, no aplica de manera general a todas las sociedades o fundaciones panameñas, sino únicamente a aquellas que cumplan los supuestos específicos previstos en la ley.
PanamaTax
Icaza Gonzalez-Ruiz & Aleman
Icaza Gonzalez-Ruiz & Aleman