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 Entity||Legal Status||Operation||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.