Panama city

Panama offshore corporations, Panamanian tax exempt companies


Panamanian non-resident companies are widely known and used throughout the world as a tax planning instrument and as shipping companies. Panamanian offshore corporation (also called Panama IBC) offers many tax benefits when used outside Panama in other jurisdictions. Panama tax exempt company can be used as a holding company since it can hold shares, assets in any part of the world. Panama offshore companies can also hold real estate. For such activity Panama off-shore company does not pay any taxes in Panama since activity performed is outside Panama. Tax system of panama is a territorial tax system. A Panama offshore corporation may open bank accounts in or outside Panama and own property located outside Panama without having to pay taxes in Panama for this. As such Panamanian corporations serve businessmen, investors, or foreign companies for making savings on tax payments.

Key features of Panama offshore companies:

  • No income tax when income of Panama company is generated outside Panama, meaning no Panama source of income.
  • No income tax is paid for invoicing the sale of goods and merchandise through a corporation’s office in Panama at a price greater than the one invoiced to the corporation in Panama for the same goods or merchandise, as long as those products or goods stay out of Panama
  • No tax is paid for distributing dividends from Panamanian Corporations when income is not produced in Panama.
  • Shareholders may be persons or companies form any part of the world.
  • There are 3 directors required holding position of president, secretary and treasurer. Directors can be persons or companies of any nationality.
  • Shareholders’ and directors’ annual meetings can be held anywhere in the world and can be held via telephone, fax, email or any other method.
  • Assets of Panama company can be kept anywhere in the world.
  • Inexpensive annual maintenance
  • Information about shareholders and beneficial owners is not filed with the Company Registry and not available to the public.
  • There are no statutory requirements of accounting and audit for Panama offshore companies. It's totally up to the corporate directors, what kind of records they would like to keep.
  • We incorporate Panamanian companies and keep them in our office as shelf companies for convenience of our clients.

If you have questions about offshore services and companies in Panama, do not hesitate to Contact us.