Weekly Offshore Panama News - Oct. 11, 2013

Weekly Offshore Panama News – Oct. 11, 2013

Oct 11, 2013 | Panama News

Welcome to the first edition of the Weekly Offshore Panama News roundup, a curated series of the week’s biggest offshore news – both in Panama and internationally. We’ll be providing short, sharp analysis of current events in topics such as real estate in Panama, new laws that effect offshore business, immigration changes, general Panama news, and great blog posts by other offshore experts.

It has been a very busy time in the world of offshore finance recently, with governments shifting their perspective on a number of issues affecting offshore business. Let’s see what was top of the agenda this past week. And don’t forget to share the news and comment below.

 

Offshore News

New Corporate Tax Shelter: A Merger Abroad – NY TIMES

One of the biggest stories this week was the merger of Applied Materials, a maker of computer chips based in California, with a much smaller Japanese company in the same field – Tokyo Electron. Avoiding the traditional and highly squeezed practise of establishing headquarters in a well-known offshore haven, the merged company is saving billions of dollars by merging into a more favorable tax position – in a different country. With regulation making inversions substantially more complicated over the last decade, moving headquarters is now easier through acquisition than relocation.

“Reincorporating in low-tax havens like Bermuda, the Cayman Islands or Ireland — known as “inversions” — has been going on for decades. But as regulation has made the process more onerous over the years, companies can no longer simply open a new office abroad or move to a country where they already do substantial business.

When Applied Materials announced its deal for Tokyo Electron, it said that its effective tax rate would drop to 17 percent from 22 percent as a result. For a company that had nearly $2 billion in profit in 2011, that amounts to savings of about $100 million a year.”

View Source

 

Panama’s Offshore Legal History

We also put together a short report on the history and future potential of Panama’s offshore companies. This was hosted by the Panama Report, who have crafted a reputation for reliable advice and real estate expertise over the years. Our article centred on what the prospects are for Panama’s numerous corporations, as well as Panama as the worldwide hub for offshore finance in the future. Take a look at this excerpt and read the article by clicking the link below.

“Historically, Panama has maintained a strong international banking center built on privacy and its simplicity to invest. At the core of Panama’s international financial allure is the Panama Corporation, which, for foreigners is customarily used as an offshore corporation. At the last official count, there were over 120,000 corporate bodies in Panama. Most of these are offshore.”

View source

 

Panama Legal

Panama Tax Law

We discovered a great overview of tax and regulation in Panama, hosted on tax-news.com and going into considerable detail. Taking into account the current stewardship of the economy by the government and the positive image Panama has abroad, the article provides a great overview of the legal experience of establishing yourself in the republic.

“Aided by stable, pro-business governments using the invaluable canal as a catalyst, Panama’s friendly tax and regulation system has helped to establish the country as one of the most modern and respectable business and financial centres outside the established ‘onshore’ countries, and ranks as probably the most important trading and business hub in the region.”

View Source

 

Panama General News

Panama Metro Line 1 to be free for the entire month of January

As part of its recent drive towards decongesting Panama City, the government of President Ricardo Martinelli has announced that the soon to be opened Metro cutting East to West through the capital will be free for January. Planned to take more cars off the road and help further modernize Panama’s image to the world, the line is being hailed as the most significant of the public works currently being undertaken.

“The Metro took its inaugural trip on Friday, September 13, traveling 1.5 miles from Albrook to 5 de Mayo Plaza in eight minutes. More than 100 people were all aboard train car No. 1109 for the first run, including President Ricardo Martinelli.

Minister of Economy and Finance Frank De Lima said that as soon as the metro is not free, tickets could cost between 60 cents and one dollar.”

View source

 

Best of the Blogs

5 Reasons to Create an Offshore Corporation

We also wrote a couple of articles this week, one of which was featured in the MP Report – a property and development agency. We were talking about 5 reasons you should create an offshore corporation and the benefits of picking the right territory. Here’s a short excerpt.

“2. Benefit from A Business Friendly Culture
As a citizen of the U.S. you are required to declare all taxable income, with citizens from other countries normally required to observe slightly less stringent tax form issues. By using a Panamanian corporation, you simply pay income tax for all your Panamanian assets and ventures. This income tax does not apply to foreign earned income, which is not subject to taxation by the Panamanian government. Law 41 in Panama provides a number of other incentives to sweeten the deal, such as an exemption from the (previously restricted) number of foreign employees a business could employ, streamlined access to work permits in Panama for executives and employees, and provide access to special SEM licenses for larger multinationals. Alongside Panama’s use of the America dollar as its official currency, these provide yet more reasons to incorporate offshore in Panama.”

View source

International Relocation Firm Staff Writer

International Relocation Firm Staff Writer

As one of the leading Panama Law Firms, and one of the regions most reliable service providers, International Relocation Firm brings a wide range of professional knowledge to our clients needs. Our staff is made up of professional consultants, Panama attorneys and immigration specialists who are experienced in international relocation, and are experts in providing a seamless Panama immigration process.

Panama Relocation Newsletter

Sign-up and receive the latest Panama news and articles on relocation, immigration, and real estate.