Panama Tax Haven

In: Business and Management

Submitted By TatianaBovven
Words 807
Pages 4
The Republic of Panama is a presidential independent, sovereign state. It is well known as one of the most developed international business center. Panama has the fastest growing economy and the largest per capita income in Central America. Today Panama is popularly known for being one of the most outstanding tax havens in the Central America region. The offshore jurisdiction of Panama has a large client base with investors from all over the world. Panama has a booming financial services sector which provides superior services such as the incorporation of International Business Companies, offshore banking, the formation of Panama Foundations and Trusts, Panama insurance the registration of boats and vessels among other services.
Tax haven Panama is a pure tax haven which offers a tax free environment to clients. Panama developed as an offshore tax haven by putting very strict legislation in place to regulate its offshore and financial sectors. The passing of modern and progressive legislature has made the Republic of Panama a very secure and stable offshore tax haven. Panama as a tax haven imposes no taxes on offshore business companies who engage in no business operations in the jurisdiction. One of the characteristics of Panama offshore legislation which puts the jurisdiction way above the competition is that offshore business companies are allowed to carry out is business operations both within and out of the offshore jurisdiction.
Most offshore jurisdictions available in the world today prohibit International Business Companies (IBCs) from doing business in the country of incorporation. Panama offshore corporations who do no business in the jurisdiction will pay no corporate and income taxes or local taxes. Panama offshore companies pay no withholding tax, capital gains tax, inheritance tax, estate tax, gift tax, etc. All offshore companies incorporated in the…...

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