Corporate – Panama Tax Lawyers https://panamataxlawyers.com Legal services, Immigration, Real Estate and Bank accounts in Panama Sat, 31 Jul 2021 18:56:58 +0000 en-US hourly 1 https://panamataxlawyers.com/wp-content/uploads/2021/03/cropped-Facebook-Profile-Picture-32x32.png Corporate – Panama Tax Lawyers https://panamataxlawyers.com 32 32 Company Annual Renewal https://panamataxlawyers.com/product/company-annual-renewal/ Wed, 25 Nov 2020 20:22:29 +0000 https://panamataxlawyers.com/?post_type=product&p=2036
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    • ]]>         Foundation Annual Renewal https://panamataxlawyers.com/product/foundation-annual-renewal/ Wed, 25 Nov 2020 20:21:27 +0000 https://panamataxlawyers.com/?post_type=product&p=2034
  • Registered Agent
  • Registered Office
  • Annual Government tax
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  • Registered Agent
  • Registered Office
  • Annual Government tax
    • ]]>         Create Your Private Interest Foundation in Panama https://panamataxlawyers.com/product/create-your-private-interest-foundation-in-panama/ Sun, 22 Nov 2020 18:23:21 +0000 https://panamataxlawyers.com/?post_type=product&p=1989

    CREATE YOUR PRIVATE INTEREST FOUNDATION IN PANAMA

    Why Panama PRIVATE INTEREST FOUNDATIONS?

    WHAT IS A PANAMA PRIVATE INTEREST FOUNDATION (PIF)?

    A Private interest foundation is a legal entity, it was created to provide the benefits of a trust with the flexibility of a company. A foundation is managed by a foundation council similar to the trustee in a trust and had control over the foundation assets. Here below we detail the main differences between a trust and a private interest foundation.

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    Type of EntityLegal StatusOperation
    		Registration
    		Establishment
    		Administrator
    		Assets
    		Protector
    Private Interest Foundation
    		Autonomous Legal Entity
    		Founder has some level of discretion on the operation
    		Registration of foundation Charter but not of the private document
    		Founder
    		Foundation Council (minimum 3 individuals or 1 corporate director)
    		Foundation can Own assets or open bank account
    		Yes
    Trust
    		Legal Act
    		Settlor transfers ownership and has no operational discretion
    		Not necessarily has to be registered
    		Settlor
    		Trustee (Minimum one with no maximum)
    		Trust can not have assets ownership only trustee
    		Yes

    The Panamanian territorial regime of taxation, makes a huge advantage for International business establishment, because all the income generated overseas is never taxed and no tax returns need to be filed.

    WHAT IS A FOUNDATION USED FOR?

    A Foundation is a very discreet good planning tool mostly use for asset protection against creditors, political instability, or safeguard your business continuity, charitable purposes, spousal claims, administer portfolios of securities or as holding company of other company’s shares.

    Can be used to hold or manage the assets for the interest of charitable, educational, scientific, or benevolent purposes.

    HOW IS THE FOUNDATION FORMED?

    The foundation charter is the legal document where is established the transfer of assets from the founder, the assets can be transferred immediately or in a time and conditions defined in the foundation charter. It is noteworthy that on the foundation Charter can be stated that the foundation may also receive properties transferred from a third party as well.

    FOUNDER

    Has the power to appoint the members of the foundation council or remove same as Protector or beneficiaries. It can be an individual or a legal entity, the minimum capital is USD $ 10.000 (this don’t have to be paid or disbursed at the time of formation in order to operate or after formation), the Founder is allowed to participate as Protector and Beneficiary as well. In order to preserve anonymity, the owner can designate a Lawyer or an individual to act as a founder by issuing a Special Power of Attorney.

    FOUNDATION COUNCIL

    Is the equivalent to the trustee in a trust, or the directors in a company, the Panamanian foundation allows the appointment of 3 directors individuals of any nationality or residence, or composed by only one corporation, or a combination of both.

    The Foundation council is responsible to execute the objects of the foundation in accordance with the Foundation Charter and of the daily management in respect of established policies and provisions. However, the Protector or the appointed supervision body has to concede approval for allowing the council to execute any decision on regards to the foundation.

    PROTECTOR 

    The Guardian or protector is not mandatory on a Panama foundation, this entity (legal or individual person), has supervision duties and can be appointed by the founder or the foundation council, the identity of the Guardian can be publicly disclosed or not depending if it is mentioned in the Charter.

    The different powers the protector is granted normally refer to remove council members, confirm decisions of the Foundation Council, ensuring Council comply with its functions.

    BENEFICIARIES

    Panama Foundation has not shareholders or owners, it has beneficiaries. Those can be appointed by the Founder, Council or Protector, depending on the regulations structure. The beneficiary can be a minor, adults or another entity and may not encumber, pledge or transfer its benefits. The foundation Charter does not need to identify the beneficiaries but in the regulations.

    DURATION

    It could be perpetual unlike a trust that is necessary to establish a time limit or defined events that will terminate the foundation validity.

    REGULATIONS

    This document and none of its content is publicly available, the information included deals with the council establishment, protector appointment and how the beneficiaries will receive their benefit.

    RECORDS & ACCOUNTING

    The register agent is obliged to keep yearly register of the accounting activities of the foundation and when requested must be disclosed to the regulator. The foundation council has to report to the beneficiaries if the foundation charter established a term for this purpose, after the presentation of such report the beneficiaries have 90 days to object any unconformity, if not, then the council is exonerated of any liability that occurred on such period, unless the council has demonstrated to act against the provisions of the regulations and interest of the beneficiaries or negligence.

    TAXES

    The Panama Foundations that own property or receive income from overseas are not subject to tax income. The Supreme Court of Panama on its decree of 23 June 2008 has extended this benefit to the legal foundations that operate in Panama, relieving them of the requirement to submit tax returns.

    As the foundations are not dedicated themselves for profit generation o commerce but administration, the law provides that the foundations won’t be generating taxable income.

    Panamanian Foundations are not required to prepare or file annual tax returns, unless they produce income from a local source.  If the foundation owns a property in Panama, has to pay property taxes, or in the case of transferring the ownership of the property is liable of the 2% land transfer tax. Other type of assets like money or securities are not subject to this taxation, same any donation or transfers of assets that are not in Panama are not subject to transfer tax. In the case of beneficiary benefits or interests paid out from the foundation are not taxable on Panama.

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    $1,500.00

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    ]]> Create Your Company in Panama https://panamataxlawyers.com/product/create-your-company-in-panama/ Sun, 22 Nov 2020 17:48:59 +0000 https://panamataxlawyers.com/?post_type=product&p=1980

    CREATE YOUR COMPANY IN PANAMA

    Why Panama Corporations?

    The Republic of Panama has a long standing on the company and foundations formation because of the series of benefits and uses it offers. Panama is consider the gateway to the Americas, given the privileged location and hub for international banking, trade, flight frequency and the famous Panama Canal, that has contributed to the economy development of the region.

    Panama has different types of companies, we will compare the most usual ones as follows:

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    Type of EntityMembersDirectorshipAbreviationDue Diligence Disclosure Days to incorporate
    IBC Corporationone shareholder, natural or juridical personminimum three persons of any nationalityS.A. / Inc. /Corp.Disclose of Directors not Shareholders3
    LLC Corporations
    		at least two shareholders and maximum of twenty, natural or juridical person
    		minimum one administrator, natural or legal person of any nationality
    		S de R.L
    		Disclose of Directors not Shareholders
    		3
    Partnership Companies
    		at least two professional members only from Panama, only natural person
    		three directors
    		N/A
    		Disclose all members
    		3
    Non-Profit Corporation
    		Natural or legal person
    		three directors
    		N/A
    		Disclose all members3 Weeks

    The Panamanian territorial regime of taxation, makes a huge advantage for International business establishment, because all the income generated overseas are not taxable.

    ADVANTAGES

    • Easy and quick company formation, no need to be present can do and deliver to you by courier.
    • Panama has not restrictions on money remittance to overseas and no currency exchange controls as well.
    • Is commonly used as asset Holding Company of other company´s shares in different jurisdictions or for holding intellectual property rights.
    • Also can be used as council member, founder of protector in a case of management of trust or foundation assets.
    • On Real Estate property the panama corporation is frequently used to hold the title property for easy transfer or asset protection.
    • Depending on your region, the Panama Company can be used as trading company to export to USA for example, bringing you cost efficiency and advantage on commercial treaties.
    • The corporation can be used on any Panama Special economic zones for free trade, manufacturing, call centers, logistic company, IT and others.
    • You can use it for the setup of gaming licenses, e-casino licenses in Panama or financial licensed companies.

    CORPORATE TAXATION

    The Panama territorial tax system states that the only taxed income is the one produced or derived on Panama sources.  Profits obtained from overseas activities such as property transfer or sale, securities transfer or acquisition,  profit generated from investments are exempted from income or withholding tax. Dividends received from overseas are taxed with 5%.

    For operative companies (With income from local source) the net Income Range Rate from  USD 0.00 to USD 1,500,000 is 25%

    From  USD 1,500,000 onwards is 4.67% of taxable income (when this value is greater than 25% of the profit).

    Companies where the Government has a 40% or more participation is 30% of taxable income. For dividends 10% tax applicable to income is generated locally and 5% if benefit is generated overseas.

    REGISTERED AGENT and REGISTERED OFFICE

    By regulation the company must have a resident agent in Panama and Registered office here as well, for registered office we can provide virtual office solutions of physical offices on demand.

    PURPOSES & RESTRICTIONS

    There are no restrictions to conduct any business except for that which is unlawful or requiring a licence.

    CAPITAL REQUIREMENTS

    Minimum registered capital for Panama companies is USD 10,000. There is no maximum capital restriction.

    Download our PANAMA COMPANY
    brochure now

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    Services Included

    + Articles of Incorporation
    + English Translation of Articles of Incorporation
    + Good Standing Certificate
    + Minutes Issuing Shares
    + Share Certificates
    + Minutes of Accounting Records
    + Share Register Book
    +Certificate of Incumbency
    + Resignation of the Subscribers

    Price Calculator


    $1,400.00

    Annual Renewal


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    Please fill the requiered information to complete your order

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