Government tax increase.

10.05.2012

On May 8, 2012, Panama’s Legislative Assembly approved and published Law No. 28 which increases the government tax for Panama Companies and Private Interest Foundations.

Starting today, May 9, 2012, all companies must pay US$300 at the moment of incorporation instead of US$250; the annual government tax after the first year remains the same at US$300. Panama Private Interest Foundations must pay US$350 at the moment of incorporation and US$400 annually after the first year.

All companies and foundations that do not pay its annual maintenance fee for two consecutive years will incur on a penalty of US$300 in addition to the current penalty of US$50 for each year of non-payment. 

Expert’s opinion

“Panama is a classic offshore center. Its political and economic system is stable and nothing foreshadows any changes. Nevertheless, the government has resolved to increase the government tax. What is it? Is it a wish to get itself noticed or rising the status?

Lately, one more big amendment happened: the program of the second passport receipt was cancelled. There were too many Guatemala emigrants and the issue of the second passports was out of control. And this program was canceled in view of the economic inexpediency.

However, the program of economic citizenship and the second passport remains and exists.”

On the basis: www.presidencia.gob.pa

Irina Lomakina ( Director of Moscow office of Honest & Bright company ltd.)