Business License Tax in Panama

Overview

Through Law No. 5 of January 11, 2007, the process of opening companies in which establishes that any natural or legal person can carry out commercial or industrial activities within the national territory.

The annual tax that the notices of operations have caused will be 2%, with an unnamed USD 100.00 and a maximum of USD 60,000.00. This tax will be paid together with the presentation of the annual income statement.

A Business License will not be required for people or businesses based in the Colon Free Zone or any other free zone or free trade zones in Panama. Nevertheless, the Business License tax is levied against these people and businesses at a reduced rate of 0.5 percent of net assets, with a minimum of US$100 and a maximum of US$50,000.