Tax
From The Report: Panama 2014
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The tax chapter provides an overview of the Panamanian tax regime, highlighting accounting and reporting procedures as well as the main types of taxies levied. This chapter also provides a look at international agreements and the establishment process for various types of firms, and features an interview with Carlos Karamañites, Partner, KPMG Panama.

Articles from this Chapter

Overview

Tax matters: A look at the country’s tax regime and its implications
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Panama has a territorial taxation system that levies taxes only on operations that take place or that have effects within the country’s territory. Income tax, in particular, is levied only on income that arises from a Panamanian source, regardless of the nationality or residence of the income recipient. Likewise, any service that a company established in Panama provides outside of the country would not be subject to income tax, as long as this service is not related to its taxable activities in…

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Increased certainty: Carlos Karamañites, Partner, KPMG Panama, on tax developments
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The government has been very active in the tax arena, proposing more than 10 tax bills between 2009 and 2013. These tax reforms and amendments have covered direct and indirect taxation. Corporate tax rates were reduced, while indirect taxes have been increased. Still, Panama has one of the lowest value-added tax rates in the region (7%). Tax revenue has risen from $2.3bn in 2009 to $5bn in 2013. The efforts to improve tax collection were also driven by an aggressive public investment plan, focused…