Free Trade Zones (Zona Libre de Colón) — Panama Special Tax Regime
🇵🇦 FREE TRADE ZONES (ZONA LIBRE DE COLóN)
Panama — Special Tax Regime
Status
Active
📋 DETAILS
Summary
The Colón Free Trade Zone is the largest free trade zone in the Western Hemisphere. Companies operating within enjoy significant tax exemptions.
Eligibility
Companies engaged in import, re-export, manufacturing, and distribution activities within designated free trade zones.
Benefits
Exemption from income tax on re-export income. Exemption from import duties and taxes. Exemption from dividend withholding tax.
Requirements
Must operate within designated free zone area. Annual operating fees apply.
Limitations
Local sales are taxed at standard rates. Must maintain physical presence in the zone.
Income Types Covered
Re-export income, manufacturing for export, trade intermediation.
Duration Details
Indefinite while operating in the zone.
🏛 COUNTRY TAX CONTEXT
Tax System
Territorial
Top PIT Rate
25.0%
Corporate Tax
25.0%
ITBMS
7.0%
Capital Gains
10.0%
Treaty Count
18
📋 OTHER REGIMES IN PANAMA
| Name | Type | Rate |
|---|---|---|
| Sede de Empresas Multinacionales (SEM) | Exemption | -- |
📚 SOURCE
PwC Worldwide Tax Summaries
View source →