Yes, interesting about goods. But about services it does say if the services are provided outside Panama. If OP works in Panama that eohld not be the case.
Panama Company with Residency Drawbacks?
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You could have a point there, but I don't want to get into a detailed legal discussion of it not knowing anything about OP's business and where any services are delivered. I think for practical purposes, the chances of the Panama tax authority pursuing that argument against a foreigner billing everything outside Panama are one in a million. They are much more interested in checking that Chinese grocery stores are issuing valid tax receipts from compliant cash registers.
Are you considering opening an International Business Corp and a checking account as a Canadian? What have you learned to date? I am also looking into options and thinking the IBC and corporate bank account is the way to go as an offshore account.
This is good to hear! Whenever I've read about Panamanian corporations it's usually with regards to offshore companies so my worry has been that this changes if you own an IBC/LLC as a resident through for example the Friendly Nations Visa.
No, because Panama does not make any distinctions between resident and non-resident companies (there is no IBC or offshore LLC concept) All Panama companies are considered resident in Panama by default. But, all Panama residens (whether companies or individuals) are only taxed on local source income, because that is the way the Panamanian tax system is set up.
still as a non resident you will not benefit from it right?
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I am glad I came across your thread, I have been researching the same topic. I'm a Canadian interested in Panama Corp + Residency.
An entity or an individual which has its activities outside of Panama will automatically escape taxation. On the contrary, an entity or an individual which engages in a business activity within Panama, receiving Panamanian source income, will be subject to pay income tax annually.
According to Paragraph 2 of Article 694 of our Fiscal Code, the income derived from the following activities is not considered from Panamanian source:
I think A & B applies to most E-Commerce or Software Services where the clients or users are outside of Panama. Thoughts?
An entity or an individual which has its activities outside of Panama will automatically escape taxation. On the contrary, an entity or an individual which engages in a business activity within Panama, receiving Panamanian source income, will be subject to pay income tax annually.
According to Paragraph 2 of Article 694 of our Fiscal Code, the income derived from the following activities is not considered from Panamanian source:
- Invoice, from an office established in Panama the sale of merchandises or products for a higher amount of that for which such merchandises or products have been invoiced against the office established in Panama, always that such merchandises or products only move outside.
- Manage, from an office established in Panama, transactions that perfect, consume or have effects abroad.
- Distribute dividends or participations of juridical persons, when such dividends or participations derive from incomes that are not produced within the territory of the Republic of Panama, including those incomes derived from the activities mentioned in literals a and b of this paragraph.
I think A & B applies to most E-Commerce or Software Services where the clients or users are outside of Panama. Thoughts?
If you are not resident you will not need to benefit from it... because you would not be paying Panama taxes in the first place. Or maybe I misunderstood your question?
Indeed, good that someone bothered to do the research and quote the tax code. Thank you. It certainly applies to e-commerce, import-export, consulting done outside Panama, etc.
Hi, I am in the same boat lol Just registered LLC and looking for banking options. Have you found good lawyer in Panama to help you with the process?
I am still early in the process, comparing my options in Panama and UAE. Are you actually planning on moving to Panama, or will you keep your current residency?
It depends on various factors, but I am considering move. It's unsafe to manage offshore company and be Canadian resident at the same time
I currently resident in Tbilisi, Georgia. But the "management of corporations" from Georgia technically make those corporations Georgian entities. This rule is not enforced, but I am evaluating options to avoid any future liabilities. Panama does seem more economical compared to UAE for forming companies and banking. I think the cost of living might be pretty much the same in both, of course, depending on your lifestyles.
You may speak with @Fred and @Gediminas to clarify the costs and more important possibilities.
Otherwise there are some interesting discussion going on inside the mentor group gold about US banking and various other banking for BVI, Puerto Rico and more.
https://www.offshorecorptalk.com/th...offer-remote-opening.30336/page-2#post-174290
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Beside of the fact that Panama Banking is very difficult in 2021 as it was abused in several forms in the past and dodgy methods needs to be used nowadays to even get a Bank Account - we met a lot of people who were complaining about the Panama Residency they had in the past and that they did put a big red flag on themselfs with having a Panama Residence despite the fact that they had a reputable citizenship - many financial service provider and brokers - even IBKR that is with the enitity in the US very close located with Panama and should perfectly work with the Panama based USD banking system - rejected them from the very beginning or as soon as significant amount of money was transferred around without any explanation given.
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@bizniz @Fred I am in the process of creating a Panama Corp - it has been created and now I am looking into which corporate bank is best - the attorney has sent me two options - Banistmo and Atlas. I am doing this specifically for crypto trading/investment. I am not a resident of Panama but applying as a Canadian as a citizen but not living there; I live in South Africa and Mexico.
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