Business License Tax in Panama

Overview

Through Law No. 5 of 11 January 2007, the process of opening companies in which it is established that any natural or legal person can carry out commercial or industrial activities in the national territory. As for the business license tax in Panama, it is applied annually and corresponds to 2% of the gross income, with a minimum of USD 100.00 and a maximum of USD 60,000.00. This tax will be paid together with the filing of the annual income tax return.

The Commercial License or Business License will not be required for persons or companies located in the Colon Free Zone or in any other free zone or free trade zone in Panama. However, these persons and companies are subject to the Business License tax at a reduced rate of 0.5 percent of net assets, with a minimum of US$100 and a maximum of US$50,000.