Offshore Panama Corporation renewals taxes

Taxes and Renewals
Each corporation or foundation must pay an annual corporate franchise tax ("tasa unica") of US$300 to the Government through the "Public Registry".

The panamanian government (According to Panamanian Law) 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

If the client not paid the annual corporation taxes, the Public Registry will not permit you to obtain any Certificates of Incorporation for the entity, which are generally required by banks from time to time, as part of their due diligence procedures and policies. The certificates of good standing are important for transferring of property held within private interest foundations or corporations .

Late Payment Penalty:

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

Second Late Payment Penalty:

The entity will be charged a second late penalty of US$300 if the annual corporate franchise tax ("tasa unica") and first late penalty is not paid after the second "deadline" period. 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.