The Strategic Crossroads of the Americas
The Republic of Panama has long served as a vital international trade and logistics crossroads. With the US Dollar functioning as legal tender (in parity with the Panamanian Balboa) and a legal system grounded in strict banking confidentiality, Panama provides extraordinary commercial utility.
The Sociedad Anónima (SA) is the definitive corporate vehicle for international business and maritime asset management.
Strict Territorial Taxation Principles
Under the Panamanian Tax Code, taxation is strictly source-based:
- Only income derived from commercial transactions, sales, or services performed physically within the territory of Panama is subject to corporate income tax (25%).
- All revenues earned from foreign transactions, cross-border trading, invoicing goods shipped between third countries, or offshore interest and dividends are 100% exempt from Panamanian taxation.
Structural Characteristics of an SA
A Panama SA requires at least three directors, two subscribers, and a licensed resident agent (Panamanian attorney). Corporate meetings and accounting records can be maintained anywhere globally.