Panama Foundation Annual Government Tax
Panama only requires one annual fee to be paid in order to renew a Panama Foundation’s registry to remain in good standing.
A Panama Foundation must pay the Panama government $350 USD as a corporate franchise tax to remain in good standing for the first year and then $400 USD each year after.
Panama law sets forth when the corporate franchise tax needs to be paid according to this schedule:
• If the Panama Foundation was incorporated between January 1 and June 30; the tax must be paid by July 15.
• If the Panama Foundation was incorporated between July 1 and December 31; the tax must be paid by January 15.
Panama Foundation Late Payment Penalty
A Panama Foundation which fails to pay the annual corporate franchise tax by the above-mentioned due date will be penalized $50 USD.
Panama Foundation with Second Late Payment Penalty
A Panama Foundation which fails to pay the annual corporate franchise tax after the first deadline will be assessed an additional penalty of $300 USD for each deadline period missed thereafter.
These penalties apply for Panama Foundations and Panama Corporations.
Panama has one of the least expensive renewal fees (corporate franchise taxes) for a Panama Foundation when compared to all other tax haven jurisdictions.