Choose Panama Real Estate, Rentals and Tours
Choose Panama
​Panama Luxury Real Estate & Rentals
License No. PN-4938-19
US: (214) 431-5235
  • Home
  • Buy
    • Condos for Sale in Casa Bonita, Playa Bonita Resort >
      • Playa Bonita Resort
      • 23M Casa Bonita Penthouse for Sale
      • 21P Casa Bonita Penthouse for Sale
      • 20-o Casa Bonita Penthouse for sale
      • 19L Panoramic Ocean View Apartment
      • 19D 2 Bedroom High Floor Apt with Great View
      • 17C Large 2-Bedroom Apt
      • 14B Casa Bonita 1 Bedroom for Sale
      • 13G 2 Bedroom at Casa Bonita
      • 11DE Large Condo with Direct Ocean Views
      • 10i Casa Bonita for Sale
      • 9e Casa Bonita 1 bedroom for sale
      • 8K 1 Bedroom Apt with Great View
      • 7F Large 2 Bedroom with Great View
      • Casa Bonita New Apartments
    • Westin Residences
    • Condos for Sale in Panama City >
      • La Maison Fendi Casa Panama
      • Matisse Costa del Este Panama
      • Costanera Luxury Apartments
      • Generation Tower
      • Arcadia in Costa del Este, Panama
      • Parque Urraca 2 Bedroom Rental Apartment
      • Moderna 360
      • Armani Nuovo Luxury Apartment >
        • Armani Nuovo 2 Bedroom Apt
      • Hyde by Wanders and Yoo
      • Loom Tower in San Francisco Panama
      • Vista Marina
      • Vista del Mar 1 bedroom
      • Nogal Apartments in Costa del Este
    • Condos for Sale in Coronado >
      • Royal Palm, Gorgona, Panama
      • About Coronado Golf Tower
      • Casamar Beach Community >
        • Perlamar at Casamar - 1 and 2-bedroom condos
        • Altamar at Casamar - 3 bedroom condos
      • Bahia Resort, Nueva Gorgona, Panama >
        • Bahia Resort 1 Bedroom
    • Playa Caracol
    • Priced-to-Sell Beach Properties
    • Houses for Sale >
      • Villamar at Casamar
      • Marinazul at Casamar >
        • Marinazul Masterplan
      • Vista Mar Villa
    • Boquete, Panama
    • Land for Sale >
      • Boquete House Plus 10 Hectares
      • Absolute Beachfront Lots Pedasi
      • Farm Land for Sale
    • Legal Process
  • Rent
    • Rental Book >
      • Pearl Club at Playa Bonita
    • Penthouses at Casa Bonita >
      • FAQs About Renting at Casa Bonita
      • Casa Bonita 21P Penthouse
      • Casa Bonita 22M Penthouse
      • Casa Bonita 23N Penthouse
      • Casa Bonita 23o Penthouse
      • Casa Bonita 24o Penthouse
    • 2 Bedrooms at Casa Bonita >
      • Casa Bonita 6B
      • Casa Bonita 6D
      • Casa Bonita 6F
      • Casa Bonita 7D
      • Casa Bonita 7F
      • Casa Bonita 7i
      • Casa Bonita 8A
      • Casa Bonita 8B
      • Casa Bonita 9i
      • Casa Bonita 10G
      • Casa Bonita 10i
      • Casa Bonita 12B
      • Casa Bonita 14F
      • Casa Bonita 15B
      • Casa Bonita 17E
      • Casa Bonita 17J
      • Casa Bonita 18A
      • Casa Bonita 18G
      • Casa Bonita 18e
      • Casa Bonita 19D
      • Casa Bonita 19K
      • Casa Bonita 19L
    • 1 Bedrooms at Casa Bonita >
      • Playa Bonita Resort
      • Casa Bonita 6e
      • Casa Bonita 8K
      • Casa Bonita 9e
      • Casa Bonita 12C
      • Casa Bonita 13B
      • Casa Bonita 14B
      • Casa Bonita 14H
      • Casa Bonita 16h
    • Renting in Panama City >
      • Nuovo by Armani Casa Luxury Apartment
      • Parque Urraca 2 Bedroom Rental Apartment
      • Solaris 3 Bedroom Rental Apartment
      • Vista del Mar 1 bedroom
      • Villa del Mar 2 bedroom apartment
      • Rental Book City Apartments
    • Fun Facts About Panama
    • Resources for Renters >
      • Terms and Conditions
      • Casa Bonita Rules & Regulations
  • Visit
    • Concierge >
      • Premium Services >
        • In Home Chef
      • Property Management
    • Things to Do in Panama >
      • Panama Canal
      • Monkey Island Panama
      • Fish Market Panama
      • Best Restaurants in Panama City, Panama
    • Panama Tide Chart
    • Areas to Visit >
      • Amador Causeway
    • Restaurants
    • Foodie Tour
    • Gift Videos
    • French People Moving to Panama >
      • Porquoi les Français s'installent-ils au Panama
  • Move
    • Why Panama?
    • How to Buy Property in Panama
    • Panama Residency
    • Opening a Bank Account in Panama
    • Getting a Bank Mortgage in Panama
    • Bringing Pets to Panama >
      • Checklist for Bringing Your Dogs & Cats to Panama from the US
    • Schools in Panama City Panama
    • Schools in Boquete and David Panama
    • Panama Drivers Llicense
    • Condo Remodeling >
      • What Do Renovations Cost in Panama?
      • Remodeling - Panama Penthouse
      • Renovations in Panama-Double Apt
      • Redecorating in Panama 1 Bedroom City
      • Redecorating in Panama Amador Causeway
    • Testimonials
  • Podcast
  • Books
    • The Panama Affair
    • FREE Book
  • Contact
    • About Us
    • In the News
    • Media Kit
    • Register for Webinar
    • Client Registration
    • Realtor Registration
  • Blog

Facts You Should Know About Individual & Corporate Income Taxes in Panama

Individual & Corporate Income Taxes in Panama | Choose Panama
The Panama Canal is a major asset of Panama’s economy. This
77-kilometer long canal connecting the Atlantic and the Pacific
Ocean offers many employment scopes for people in Panama.
Choose Panama has compiled some fundamental info for
expats willing to work in Panama. Different taxes in Panama
include real estate taxes, dividends tax, employee taxes,
commercial tax, capital gains tax, corporate tax, and
individual income taxes. Let’s have a look at a few facts
engaged when it comes to individual and corporate income
​taxes in Panama.

Individual income taxation in Panama

During writing, rates of taxes for individuals are as follows:
  • A 15% rate of income tax applies to all income exceeding $11,000, up to $50,000.
  • A yearly net income of up to $11,000 is free from tax.
  • A 25% rate of tax applies to all income exceeding $50,000.

​Currently, Panama has finalized double taxation treaties with some nations for fighting its reputation as the tax haven.

Corporate income tax in Panama

Every source of income in Panama is subject to income tax, be you are a corporation or an individual. This applies to both Panamanian companies and the branches of foreign companies. 25% of net taxable income is the fixed rate of tax for companies.

An alternative minimum measurement of income tax can be utilized, by which a 25% rate is applied to the net taxable income which increases after reducing 95.33% from the gross taxable income. Small business finds it advantageous from an assessment over a combination of the corporate and the personal tax rate, albeit they can’t apply for this alternative measurement if the gross taxable income is not more than $1,500,000.

All domestic and foreign organizations registered in the Public Registry can pay a franchise tax, even if they will not do business in Panama. Every commercial and industrial business that should have a license for operating is also subject to a yearly license tax of 2% of the net worth of the company.

In Panama, the fiscal year generally corresponds to the calendar year. Tax payments and returns are due by the end of the 3rd month after the fiscal year ends.

Panama Tax Services in Brief

There are some agencies that offer a detailed analysis of clients’ individual tax situations with solutions for reducing tax rates in Panama for both corporations and individuals in Panama. These services are also accessible by foreign companies pondering doing business and reducing taxes in Panama. The Panama tax services start with learning regarding you and your organization’s products and services, and the kind of structure and legal bodies engaged with your products and services’ sale, distribution and delivery. Whether your organization will be just selling its items and services to clients residing outside of Panama or to the tourists, residents, and citizens of Panama, will make a distinction concerning the tax liabilities of your organization in Panama. Knowing these facts will make it simpler for you to make a decision of choosing the right kind of resources for helping you in reducing your tax liabilities.

Copyright 2012-2025 Choose Panama Inc. All Rights Reserved.