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A corporate regional headquarters with offices and employees based in Panama does not pay any income tax, if the office merely directs operations from Panama; that is, it performs only international operations from Panamanian territory.

Some of the key attributes of Panama are: a stable government; a dollar-based economy, without currency exchange restrictions; the Canal and the Colon Free Trade Zone; an international financial center with a well-developed infrastructure including a top notch telecommunications system; an excellent legal framework that allows 100% foreign owned investments; a strategic location with access to the entire western hemisphere.

-Directing transactions that are executed, completed, or effected outside Panama.

-The resale of merchandise or products for an amount greater than had previously been invoiced against the office in Panama, provided the goods transit solely outside Panama.

Corporations are always searching for great opportunities. Panama has been a great opportunity for decades; global Fortune 500 companies – Coca Cola, Sony, HSBC, Nestlé, Roche – all know this.  Where they go, others follow.  Foreign investment capital inflow continues as potential becomes reality, and reality becomes profit.

-Invoicing, from an office established in Panama.

Income tax laws permit taxation only on income generated from trade entirely within Panama.  Foreign source income, generated outside Panama, is 100% exempted. Income from the following activities is not considered domestic activity within the territory of the Republic of Panama, and is specifically exempted from taxation:

The Republic of Panama stands apart from other Latin American countries.  The Economic Liberty Index for 2007 ranks Panama 47th of 157 countries.  A major consideration in making the choice to do business in Panama is quality of life.  Panama City is cosmopolitan and offers excellent living conditions. Office, commercial, industrial and housing spaces are available, as are skilled, multilingual employees.

-Distributing dividends or participations from the tax exempt activities.

For manufacturing or assembly operations, the existing law for Export Processing Zones designates them as 100% tax-free areas. Both the developer and the export item will be 100% exempted from national direct and indirect taxes, duties, levies, right and charges.

It is plain to see that there are tremendous benefits to doing business in Panama.

The U.S. – Panama Free Trade Agreement (2007) passed the Panamanian legislature and is awaiting U.S. approval.  Its purpose is to provide legal security for business, trade and investments between both countries, and increase opportunities available to investors from the United States.  Law 41 (2007), based on successful models in Switzerland and Singapore, was passed with the intent to ensure that Panama becomes an attractive center for multinational firms.  Benefits given to multinational companies establishing their headquarters in Panama include tax exemptions, and special labor and migration status, with simplified and streamlined visa, residence and work permit requirements.  There are already special considerations for industrial parks, call centers, and ecommerce to facilitate trade and investment.

Murder suspect claims self-defense in motion to dismiss
PANAMA CITY — Steven Anthony Thompson couldn’t convince investigators he killed Nicholas N. Barter in self-defense, but he’s hoping he will have better luck with Circuit Judge Michael Overstreet. Thompson’s attorney, Ryan R. Davis of...

For Members
With the end of the Cold War and collapse of the Soviet Union, there has been a growing chorus of cries for the United States to lift the economic embargo on Cuba. This chorus has included even such responsible anti-communist voices as those of former President Richard Nixon and the editorial page of The Wall Street Journal.

An industry at sea
New rules taking effect May 1 cast doubt on an already unpredictable line of work.

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