Panama - Corporation/Other jurisdictions

Panama is an independent state located in a strategically advantageous position - this country provides the
link between the two halves of the American continent, North and South.

Until 1821, Panama was a colony of Spain, but in 1903 it became a fully independent state.

A significant source of revenue for Panama is the fees for use of the Panama Canal, which has belonged to Panama since 1999. In addition, the Colon Free Zone, which lies on Panama territory, is the second largest free zone in the world, smaller only than the free zone of Hong Kong.

Panama adheres to the territorial system of taxation of income, and does not levy tax on income derived outside its borders. Consequently, Panamanian companies not deriving their income within Panama are completely exempt from Panamanian tax.