|Corporate Franchise Tax – Panama Foundation||Government||Annually||Mandatory||
$350 First Year
$400 Subsequent Years
|Corporate Franchise Tax – Panama Corporation||Government||Annually||Mandatory||
|Corporate Franchise Tax – Late Payment Surcharge||Government||Annually||Mandatory||
|Corporate Franchise Tax – Second Late Payment Fine||Government||Every 2 Years of Non-payment||Mandatory||
|Resident Agent / Office Fee||Law Firm||Annually||Mandatory||
|Nominee Directors / Council Fee||Law Firm||Annually||Optional||
|Mail Drop Services Fee||Law Firm||Annually||Optional||
Below you will find a detailed description of each of the above mentioned costs.
CORPORATE FRANCHISE TAXES
To keep a corporation or foundation in good standing with the Panamanian Government, each entity must pay a flat annual corporate franchise tax (“tasa unica”) to the Panamanian Government ( Public Registry). This annual corporate franchise tax should begin the first payment on the date that the entity is incorporated.
Please note that if the annual corporate franchise taxes are not paid, the Public Registry will not permit any changes to the entity at the Public Registry, and will not allow you to obtain any Certificates of Incorporation (certificate of good standing) for the entity, which are generally required by financial institutions from time to time, as part of their due diligence procedures/policies. In addition, certificates of good standing are generally required for transferring of property held within corporations and/or foundations.
According to Panamanian Law, the government corporate franchise tax payment deadlines are based on the Incorporation date, as follows;
Incorporation Date: Tax Payment Deadline:
From 1 of January to 30 of June 30 : July 15
From 1 of July to 31 of December 31 : January 15
Late Payment Penalty:
If the annual government corporate franchise tax (“tasa unica”) is not paid on or before the due dates mentioned above, the entity will be charged a late penalty of US$50.00.
Second Late Payment Penalty:
If the annual corporate franchise tax (“tasa unica”) and first late penalty is not paid after the second “deadline” period, the entity will be charged a second late penalty of US$300 For every additional “deadline” period missed thereafter, a US$300 late fee will be incurred.
TAX FILING FEE (Not Applicable to “Non-Operational” Entities)
There are two types of tax filings in Panama:
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, and have a local Panamanian business operations permit. This type of tax filing requires a detailed declaration of local Panamanian 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 operation.
Non-Operational Tax Filing: this is a tax filing for Non-Operational entities (corporations or foundations), in other words, entities that have always operated their business outside of the territory of the Republic of Panama, or entities that have never conducted any business that generated income from sources within the territory of the Republic of Panama. This type of tax filing requires a simple declaration of non-operation (or Non-Panamanian operation), duly signed by a Panamanian Certified Public Accountant (CPA). The costs for Non-Operational tax filings are a flat $150 per filing. Please note that, if your entity was originally registered as a “Non-Operational” entity, it is not required to file the non-operational tax filing.
Annual tax filings are done from January 1st to March 31st.
RESIDENT AGENT / OFFICE FEES
The resident agent / office is the law firm or attorney that represents the entity (corporation and/or foundation) and the name of the law firm or attorney and office address of the entity is stated on the public deed of the entity at the Public Registry. To keep a corporation or foundation in good standing with our law firm, each entity must pay an annual resident agent / office fee of US$450 per year, starting one year from the date of incorporation.
NOMINEE DIRECTORS FEE
Nominee directors or nominee council members are an optional service provided by our law firm. If requested, our law firm provides the directors or council members that are required for the formation of the corporation or foundation. The fees for nominee directors or foundation council services are $150 per year per nominee director. Please note that our law firm does NOT offer nominee directors services to US Persons (citizens or residents of the US).
MAIL DROP SERVICES
Mail drop (mail forwarding) services provides you with a post office box, and a physical address in Panama where your corporation and/or foundation may receive post mail correspondence or courier packages. As the mail and/or packages are received, they are forwarded to you as per your instructions. If you have subscribed to the Mail Forwarding Service, then you paid for the first year of service at the initiation of your subscription. To renew your Mail Forwarding service, there is an annual fee of $300.00.
Corporate Franchise Tax Payment Inquiries
If you have an entity that you wish to pay annual corporate franchise taxes or renewal fees on, or change your resident agent to International Relocation Firm, please complete the following information, and one of our associates will respond to you shortly: