• Panama Offshore Corporations

• Offshore Corporations Advantages

OFFSHORE CORPORATIONS

Panama´s legal framework is the appropriate for doing local and international business since we are recognized as a reliable jurisdiction that succeeds with the premium legal figure known as the “Offshore Corporation” since 1927.

LAW 32 , 26 FEBRUARY 1927, "ABOUT OFFSHORE CORPORATIONS"... PDF document (in spanish)

Offshore Corporations are panamanian corporations that don´t operate in the panamanian territory but they do operate abroad. The main advantage is that they don´t pay income tax in Panama for the operations done abroad; they only pay taxes for the operations done in Panama.

Although the panamanian corporation or Offshore Corporation has an office, personnel, and commercial license to work in Panama, the corporation won´t pay income tax in Panama for those operations that are done by the corporation abroad.

And the same happens to dividends: panamanian tax law only taxes dividends that have been distributed for operations done in Panama but not those that are distributed for operations done abroad.

It is important to know though that the company must pay taxes for those employees who have permanent residency in Panama.

Offshore corporations have many functions and benefits. In general they are used for tax planning, asset protection and holding.

For more information about advantages and necessary requirements of the incorporation of a Panamanian Corporation go to our section CONTACT US

We will help you in the decision of patrimony and tax planning through this legal figure.