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Tax Considerations When Offshore Banking In Panama
Learning about the tax aspect of offshore banking in Panama is very important. When looking to place your assets offshore for increased protection, there are many aspects to take into consideration. The following are some pointers about taxation in Panama.
Learning about the tax aspect of offshore banking in Panama is very important. When looking to place your assets offshore for increased protection, there are many aspects to take into consideration. The following are some pointers about taxation in Panama.
Foundations have a $250-$300 annual renewal fee, and that is it. The banks may charge a service charge, but that is not tax related. When the foundation owns a corporation and that corporation has income, as long as that income is not generated in Panama, it is not taxable. There is no capital gains tax for foundations. In the event of death there is no inheritance tax or estate taxes for the beneficiary of the foundation. So, in essence, foundations are not taxable in Panama.
With a bearer share corporation there is also an annual government fee. The annual fee for corporations is $300. Again the banks charge service charges but that is not tax related. There are some tax charges to remember though. If there has been a sale of corporate shares, a capital gains tax is the owed. This is because the shares exist in Panama and the gain has then occured in Panama.
Foundations are not taxable in Panama. They also have a $250-$300 annual renewal fee, but that is it. The banks may charge a service charge, but that is not tax related. There is no capital gains tax for foundations. In the event of death there is no inheritance tax or estate taxes for the beneficiary of the foundation. When the foundation owns a corporation and that corporation has income, as long as that income is not generated in Panama, it is not taxable.
Depending on what your home country is, the tax laws may vary. It is one thing to want to protect your assets from other people or business competitors, but to hide your assets to avoid paying any taxes is another and is not recommended. There are strategic ways to do your tax planning and it is suggested that you consult a local tax lawyer to learn about the ins and outs of taxation in your country.