Panama Banks

Panama is a sovereign democracy with a presidential style of government. The country is situated between Colombia and Costa Rica. It has a population of over 3.5 million. The official language is Spanish, although English is perfectly understood in business circles. The currency circulating in Panama is the United States Dollar (USD), but the official currency is the Balboa, which is only used in small transactions. The service sector contributes more than three fourths of Panama’s economy, which is based mainly on banking, tourism, mining and trade. The free Zone of Colon has been very successful. In June 2000, the FATF considered Panama to be an uncooperative tax haven in the global war against money laundering. The result was that Panama ended up, along with 15 other jurisdictions, in the FATF black list.

Within just one year, the government adopted strong measures that led, in June 2001, the FATF to eliminate Panama from the black list and to praise the steps that were taken to improve the countrys control over money laundering. Then, in 2009, Panama was placed on the gray list of the OECD countries, that is to say countries that have been compromised, but haven’t substantially implemented international standards in relation to transparency and the exchange of fiscal information. Since that date, Panama has progressed in negotiating new treaties and has already signed 12 agreements for the exchange of fiscal information, with several countries. Panama applies a territorial tax; however, only income obtained in the country is taxed. There are more than 120 thousand companies registered in Panama, many of which carry out their business or keep their assets abroad. It is fairly easy to form a company and privacy is guaranteed. Earnings obtained in Panama are taxed at a 25% rate for individuals. There are no taxes on income from capital; however, income from real estate counts as income. All earnings obtained abroad are tax free. There are VAT and duties on all imports, although these have been noticeably reduced in recent years. The Government offers incentive programs for investments in various sectors, in which foreign investors receive ample fiscal benefits.

Panama Offshore Banks:

Bank Superintendency of Panama

Telephone: (507) 506-7800, (507) 506-7900

E-mail: [email protected]

Web: http://www.superbancos.gob.pa/home_eng.asp

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