Understanding corporate income tax and other business taxes in Panama is crucial for companies operating within the country. Alongside corporate income tax, businesses should be aware of other taxes, such as withholding tax, social security contributions, customs duties, property tax, and potential municipal taxes. It is advisable to consult with a tax professional or refer to the official website of the Panama Tax Authority for the most accurate and up-to-date information. By fulfilling their tax obligations, businesses can operate in compliance with Panamanian tax laws and contribute to the growth and development of the country's economy while benefiting from its business-friendly environment and strategic location.
Panama imposes corporate income tax on the profits earned by companies operating within its jurisdiction. The corporate income tax rate in Panama is a flat rate of 25%. This rate applies to both resident and non-resident companies engaging in commercial, industrial, or professional activities in the country.
For comprehensive and up-to-date information on business taxes in Panama, it is recommended to visit the official website of the Panama Tax Authority, the Dirección General de Ingresos (DGI).
Panama Tax Authority Website: Official Panama Tax Authority Website