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.

Foundations are not taxable 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.

This is because the shares exist in Panama and the gain has then occured in Panama. This is written in Section 701(e) of the Panama tax code; "profits derived from the sale of corporate shares and personal property are taxable income...the taxpayer will be subject to Capital Gains tax at a fixed rate of 10%".

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.

When looking to place your assets offshore for increased protection, there are many aspects to take into consideration. Learning about the tax aspect of offshore banking in Panama is very important. Make sure you are informed.

Article Source: Main Articles

Bill writes extensively about asset protection in Panama through offshore bank accounts at the OffshoreLegal website.

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