Panama is uniquely situated as one of the oldest and safest financial centers in the region. The political stability, geographical location and strong economy of Panama have contributed to its success as an international financial center. The economy is dollarized and the U.S. dollar is accepted as legal tender.
At AFRA, our attorneys possess in-depth knowledge of the complexities of Panama’s tax code. Our lawyers leverage their knowledge to counsel clients and maximize tax benefits that are available to individuals and businesses.
AFRA’s attorneys counsel clients on all aspects of taxation including structure, planning, strategy, litigation and general advice. We represent local clients by defending tax audits requested by the Tax Authority. We provide legal advice to foreign companies regarding advantages provided by various tax structures available in Panama. These tax structures serve as incentives for certain types of industries and businesses. Tax incentives apply to the hotel industry, oil and gas companies and financial institutions.
Panama is internationally recognized for its low tax burden. Income tax is based on a sliding scale based on the amount of taxable income a person or corporation has earned in the year. Panama also allows significant deductions to reduce the amount of taxes owed. Tax exemptions for certain purchases, including import and real estate taxes, can further lower the tax burden. These exemptions have created significant incentives for companies to expand their businesses into Panama’s favorable economic climate.
Our attorneys offer practiced tax advice to a wide variety of individual and business clients. We remain apprised of current developments in tax law to provide clients with customized solutions and information relevant to their unique situation. We also advise clients on how to best maximize their benefits within the confines of Panama’s tax law.
In order to provide the best possible legal representation to our clients in tax matters, we prioritize education and stay up to date on the nuances and evolution of Panama’s tax laws. This allows us to guide our clients through a wide range of tax issues that are related to business activities. We make sure that our clients remain in compliance with tax laws while taking advantage of the benefits of Panamanian tax law.
Send your questions on trusts and foundations to partner Rodrigo A. Moreno Jr..