Rate
—
Duration
—
Prior non-residency
—
required before applying
Standard top income tax
25.0%
Panama, without the regime
Overview
- Regime
- Sede de Empresas Multinacionales (SEM)
- Country
- Panama
- Type
- Exemption
- Status
- Active
- Effective from
- —
- Expires on
- —
Details
- Summary
- Multinational headquarters regime allowing companies to establish regional headquarters in Panama with significant tax benefits on foreign-source income.
- Eligibility
- Multinational companies establishing regional headquarters or service centers in Panama serving operations in at least 2 other countries.
- Benefits
- Tax exemption on foreign-source income. Reduced immigration requirements for foreign staff. Import duty exemptions on office equipment.
- Requirements
- Must employ minimum 5 local staff. Must have a physical office in Panama. Must provide services to at least 2 other countries.
- Limitations
- Cannot provide services within Panama under SEM regime. Panama-source income remains taxable at standard rates.
- Income types covered
- Management fees, technical services, financial services, and other services rendered to related entities outside Panama.
- Duration details
- Indefinite while qualifying conditions are met.
Other regimes in Panama
| Name | Type | Rate |
|---|---|---|
| Free Trade Zones (Zona Libre de Colón) | Free zone | — |
View source PwC Worldwide Tax Summaries