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Offshore Banking In Panama - Tax Information |
By:
William Nederost |
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Offshore Banking in Panama - Tax Information
William Nederost
It is one thing to want to protect your assets from other people or business competitors, but to hide your assets to avoid paying any taxes is another and is not recommended. Depending on what your home country is, the tax laws may vary. There are strategic ways to do your tax planning and it is suggested that you consult a local tax lawyer to learn about the ins and outs of taxation in your country.The following are some pointers about taxation in Panama.
Foundations are not taxable in Panama. Foundations have a $250-$300 annual renewal fee, and that is it. The banks may charge a service charge, but that is not tax related. When the foundation owns a corporation and that corporation has income, as long as that income is not generated in Panama, it is not taxable. There is no capital gains tax for foundations. In the event of death there is no inheritance tax or estate taxes for the beneficiary of the foundation.
With a bearer share corporation there are a few different aspects to look at. For instance, there is also an annual government fee. The annual fee for corporations is $300. Again the banks charge service charges but that is not tax related. Income of the corportation is not taxable if it has been generated outside of Panama.
This is written in Section 701(e) of the Panama tax code; "profits derived from the sale of Corporate shares and personal property are taxable income...the taxpayer will be subject to Capital Gains tax at a fixed rate of 10%". Regular income of the corportation is not taxable if it has been generated outside of Panama.
There are strategic ways to do your tax planning and it is suggested that you consult a local tax lawyer to learn about the ins and outs of taxation in your country. It is one thing to want to protect your assets from other people or business competitors, but to hide your assets to avoid paying any taxes is another and is not recommended. Depending on what your home country is, the tax laws may vary. Make sure you are informed.
William writes regularly about http://www.offshorelegal.org/bullet-proof-asset-protection.html asset protection in Panama through http://www.offshorelegal.org/ offshore bank accounts at the OffshoreLegal website. You are welcome to reprint this article - but get your own http://www.uberarticles.com/?id=16173&b=79 unique content version here.
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Article Source: http://www.statssheet.com/articles/article61501.html |
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