Panama Compliance Guide
Filing requirements, deadlines, and fees for Panama business entities.
Filing Obligations
Annual Franchise Tax (Tasa Única)
AnnualPanama entities must pay an annual franchise tax (tasa única) to maintain good standing. Panama operates a territorial tax system — only income sourced within Panama is taxable. Foreign-source income is tax-exempt.
Anniversary of incorporation (1 July for entities incorporated before 2017)
US$300 (corporation); US$400 (foundation); US$300 (S.R.L.)
US$50 surcharge per year of non-payment. Entity is considered 'not in good standing' and may eventually be dissolved.
Through the Public Registry or a resident agent
Income Tax Return (for Panama-source income)
Annual (only if earning Panama-source income)Panama levies income tax at 25% on Panama-source income only. Entities with exclusively foreign-source income are not required to file a tax return. ITBMS (VAT equivalent) of 7% applies to domestic sales of goods and services.
31 March following the fiscal year (calendar year basis)
No filing fee
Surcharges and interest on unpaid tax.
Online via the Dirección General de Ingresos (DGI) eTax portal
Beneficial Ownership Register (Registro de Beneficiarios Finales)
OngoingSince Law 129 of 2020, Panama entities must maintain a register of beneficial owners with their resident agent. The information is not publicly accessible but must be provided to the Superintendency of Non-Financial Subjects (SSNF) upon request.
Upon incorporation; updates within 30 business days of any change. Private — maintained by the resident agent.
No fee
US$1,000–US$5,000 for the resident agent failing to maintain the register. Criminal penalties for false information.
Maintained by the resident agent; accessible to authorities upon request
Key Dates
Frequently Asked Questions
Does Panama tax foreign-source income?
No. Panama operates a strict territorial tax system. Only income sourced within Panama is subject to income tax (25%). Companies earning exclusively foreign-source income pay no income tax and are not required to file a return. They must still pay the annual franchise tax (US$300).
What is a Panama Private Interest Foundation?
A Private Interest Foundation (Fundación de Interés Privado) is a legal entity without shareholders or members, created to manage assets for the benefit of designated beneficiaries. It is commonly used for asset protection, estate planning, and wealth management. It cannot carry on commercial activities in its own name.
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Get Started FreeLast updated: 2026-02-27. Information is provided for general guidance and may not reflect the most recent changes. Always verify with the official state registrar.