Panama tax resource in English
A reader pointed me to this website that has a pdf file download available regarding all the Panama taxes in English. It is a rather long read, but easy to understand and important to anyone wanting to do business here in the country. I am always amazed at peoples response when they discover after investing in Panama, that they will be subject to a 30% corporate profit tax and a 10% shareholder distribution tax (20% if you hold bearer shares). Even if you don't make a profit you will still have to pay the 1.5% alternative minimum. When you look at the entire Panama tax regime it is not an attractive one unless you fit neatly into a number of exempted businesses that cater to offshore or free zone operations.
I encourage all foreigners doing business here to take the time to read and understand the taxes. You will find that few Panamanian attorneys and accounts do.
