Written By:  Quijano & Associates

Panama, Republic of Panama

A recent tax reform enacted by the Panamanian government is applicable to Panamanian corporations and private interest foundations as of the 8th of May 2012, which means that the annual tax has increased as follow:

Panamanian Corporations
Incorporation US$300.00
Annual Tax US$300.00

Private Interest Foundations
Establishment of the Foundation US$350.00
Annual Tax US$400.00

Failure to make timely payment of such taxes shall be penalized with a surcharge for every year or fraction of a year. In the event of non-payment for two (2) consecutive years, the legal entity in question will cease to be eligible for any of the services provided by the Office of the Public Registry where a notation to that effect shall be made in the documents of constitution of the defaulting legal entity. Any such legal entity may only have said notation cancelled upon payment on an additional U.S.$300.00 and all delinquencies annual taxes with their surcharges in order to be able to obtain services normally again.

For more information about Quijano & Associates, please visit www.quijano.com or the International Society of Primerus Law Firms.