What Taxes Apply When Opening a Company in Panama Pacifico?

Understanding Panama Pacifico

Panama Pacifico is a Special Economic Zone (EEZ) established under Law 41 of 2004 and amended by Law 66 of 2018. This special area was designed to encourage local and international investment, with a focus on activities such as logistics, international trade, export, technology, and global corporate services.

Key Benefits such as ZEE

• Tax and immigration exemptions.
• Access to modern infrastructure and global connectivity.
• Competitive advantages for companies in specific sectors such as logistics and technology.

Therefore, Panama Pacifico is not only a strategically located place, but it is also a pole of economic development with fiscal incentives that no other area offers.

Understanding Tax Obligations

The location in the Panama Pacific area does not automatically exempt all companies from their tax obligations. Depending on the type of activity you do, some taxes still apply. These may include:

• Income Tax: In some cases, companies offering services outside of Panama are exempt.
• Tax on dividends and remittances: Typically applicable to companies that generate income within Panama.
• ITBMS (Tax on the Sale of Goods and Services): It generally does not apply if the activity is export-oriented.

Understanding your business activity and complying with tax regulations is key to maximizing exemptions.

Activities Exonerated by Legislation

According to Law 66 of 2018, the following activities are exempt from various taxes as long as they meet the established requirements:

• Logistic services, including repacking, warehousing and international distribution
• Call centers that provide services outside Panamanian territory.
• Technology and IT services for export.
• Manufacturing and assembly for export purposes.
• Import and re-export operations.

This makes Panama Pacifico a unique opportunity for companies interested in international trade or technology.

Steps Required to Qualify

To enjoy the tax benefits of Panama Pacifico, companies must strictly comply with the requirements established by the regulations:

• Registration with the Panama Pacific Agency (APP).
• Presentation of business plans aligned with authorized economic activities.
• Compliance with regular tax reporting.
• Ensure that the main operations are carried out within the area.
• Rent or buy areas where the company will operate.

Limiting yourself to appropriate tax processes not only provides legal certainty, but it also maximizes your tax benefits.

Personalized Advice for Your Company

At Limitless Legal we offer comprehensive advice for entrepreneurs who want to settle in Panama Pacifico. From legal incorporation to tax benefit management, our team guides you every step of the way. Some of our services include:

• Business registration with Panamanian authorities.
• Advice on tax matters and compliance.
• Management of migratory exemptions and permits.
• Review of contracts and legal documentation.

With our support, you will ensure that you make the most of the benefits of this special economic zone.