Panama has recently approved a new tax amnesty. The new amnesty provides for a discount of 85% on interest and penalties in relation to outstanding annual taxes for companies and foundations.
The amnesty will expire on 31 August 2021.
This is a good opportunity to get your companies and foundations back in good standing, if for some reason you have been late with payment of your annual taxes.
Should you have any questions, then please do not hesitate to contact
The taxation of dividends and loans
The general rule is dividends declared by Panama companies with interests in Panama are subject to a tax rate of between 5% and 20%.
The Panama tax authority has sought to apply a similar rate to loans made by Panama companies to its shareholders, and this was recently challenged before the Supreme Court through the constitutional case Industrias Lacteas, S.A. vs para 1, art. 733 of the Fiscal Code, March 2021. The company sought to argue that this tax treatment of loans between a company and its shareholders is unconstitutional on the basis that the payment of dividends is not the same as the making of commercial loans.
In short, the Supreme Court rejected the company’s arguments and confirmed that the tax rates of between 10% and 20% shall apply to loans made by a company to its shareholders.
For more information please contact:
Other Panama news – the launch of Hatstone Real Estate
We are pleased to let you know that Hatstone has recently launched Hatstone Real Estate S.A in Panama. We are licensed to assist you with the sale and purchase or rental of properties in Panama. The new website advertising properties will go live shortly.
If you have any queries regarding the sale and purchase or rental of property in Panama then please do not hesitate to contact