{"id":31342,"date":"2024-03-25T08:00:00","date_gmt":"2024-03-25T08:00:00","guid":{"rendered":"https:\/\/nuevo.sucre.net\/?post_type=cpt_services&p=31342"},"modified":"2025-01-22T08:31:53","modified_gmt":"2025-01-22T13:31:53","slug":"tax-law-2","status":"publish","type":"cpt_services","link":"https:\/\/www.sucre.net\/en\/services\/derecho-fiscal\/","title":{"rendered":"Tax Law"},"content":{"rendered":"

Territorial Tax System<\/h2>\r\n\r\n\r\n\r\n

The Panama income tax system is based on the \u201cterritorial principle\u201d whereby only income generated within PA territory is subject to income tax. Section 694 of the PA Tax Code establishes the following:<\/p>\r\n\r\n\r\n\r\n

\u201c(\u2026) The income tax would be applicable to any income derived from any source, within the Panamanian territory. (\u2026)\u201d<\/p>\r\n\r\n\r\n\r\n

It is not considered as income generated within the Republic of Panama:<\/p>\r\n\r\n\r\n\r\n

    \r\n
  1. Invoice from an office established in Panama the sale of goods or products for a sum greater than that for which said goods or products have been invoiced against the office established in Panama, provided that said goods or products move only abroad.<\/li>\r\n\r\n\r\n\r\n
  2. Direct from an office established in Panama transactions that are completed, consummated or have their effects abroad.<\/li>\r\n\r\n\r\n\r\n
  3. Distribute dividends or participation quotas from legal entities that do not require notice of operation or do not generate taxable income in Panama, when such dividends come from income not produced within the territory of the entity.<\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n

    Republic of Panama, including income from the activities mentioned in paragraphs a and b.<\/p>\r\n\r\n\r\n\r\n

    Furthermore, according to Section 9 of Executive Decree N\u02da 170 of 1993 any income generated within Panama would be subject to income taxation regardless of the place where the income is received or the domicile or residence of the taxpayer. Income is deemed derived within the country when it is generated by civil, commercial, industrial, professional and similar activities and any type of services carried out within the Panamanian territory.<\/p>\r\n\r\n\r\n\r\n

    SUCRE | ARIAS | REYES provides in-depth analysis for foreign corporations considering doing business in Panama, in order to help them with tax planning.<\/p>\r\n\r\n\r\n\r\n

    Our Panama tax services begin with understanding the company\u2019s activities, and the type of structure and legal entities involved with the sale, distribution and delivery of products and services. Whether your company will solely be selling its products and services to customers and clients residing outside of Panama, or to Panamanian citizens, residents and tourists, will make a difference concerning your company\u2019s Panama tax liabilities. Knowing these facts will make it easier for us to recommend the right types of resources to help you minimize your tax liabilities.<\/p>\r\n\r\n\r\n

    \r\n\r\n\r\n

    Panama Tax Law<\/h3>\r\n\r\n\r\n\r\n

    Types of Panama Taxes<\/h4>\r\n\r\n\r\n\r\n
    \r\n
    \r\n