Guide · Business and employment
Annual Obligations of a Panamanian Corporation
What a Panamanian corporation must do every year: annual flat fee, registered agent, accounting, beneficial owners and taxes if it operates in Panama.
- Annual flat fee
- USD 300 a year
- Registered agent
- Mandatory
- Beneficial owners
- Information kept up to date
- Updated
In short
Every Panamanian corporation, whether or not it operates in Panama, must pay the annual flat fee (tasa única) each year, keep a registered agent, keep accounting records and keep its beneficial ownership information up to date. If it also carries on an activity in Panama, tax obligations are added: income tax return, business license tax and electronic invoicing.
What obligations does every corporation have?
- Annual flat fee: USD 300 a year, paid to the tax authority (DGI) even if the company has no activity.
- Registered agent: a Panamanian lawyer or law firm, which the company must keep for as long as it exists.
- Accounting records: keep the books, retain supporting documentation for the period set by law and provide the registered agent with the information the regulations require.
- Beneficial owners: inform the registered agent of who controls the company and notify any change, so it can be recorded in the system provided by law.
- Corporate books: the share register and the minutes of board and shareholder meetings.
What is added if the company operates in Panama?
- Annual income tax return with the DGI on its Panamanian-source income (see territorial taxation).
- Business license tax: 2% of capital, with an annual minimum and maximum (see business license).
- Electronic invoicing: issue invoices through the DGI's electronic invoicing system, which has been made mandatory in phases.
- ITBMS: file and pay the tax on the transfer of goods and services (7 % as a general rule) if the activity is subject to it.
- Municipal taxes in the district where it operates.
- Social Security Fund contributions, if it has employees (see hiring employees in Panama).
Each obligation has its own monthly, quarterly or annual calendar, depending on the activity and size of the company. It is best to organize it with an authorized public accountant from the first year.
Frequently asked questions
Do I have to pay the annual flat fee if the company has no activity?
Yes. The flat fee is paid every year for as long as the company is registered in the Public Registry, whether or not it has activity.
Can I change registered agent?
Yes, through a company resolution registered in the Public Registry. The new agent will need the information on the company and its beneficial owners.
How do I close a company I no longer use?
Through its dissolution, which is resolved and registered in the Public Registry, with the flat fee paid up to date. Abandoning it does not end it: it keeps generating fees and surcharges.
Do I need an accountant in Panama?
If the company operates in Panama, in practice yes: tax returns and financial statements usually require the signature of a Panamanian authorized public accountant.