Rate
—
Duration
—
Prior non-residency
—
required before applying
Standard top income tax
25.0%
Panama, without the regime
Overview
- Regime
- Free Trade Zones (Zona Libre de Colón)
- Country
- Panama
- Type
- Free zone
- Status
- Active
- Effective from
- —
- Expires on
- —
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.
Other regimes in Panama
| Name | Type | Rate |
|---|---|---|
| Sede de Empresas Multinacionales (SEM) | Exemption | — |
View source PwC Worldwide Tax Summaries