Tax and Accounting Regulations
A coherent offshore planning strategy is essential to maximise the effectiveness of offshore companies. Eltoma can assist by structuring the most tax efficient strategy to satisfy your requirements. Eltoma will guide you as to which jurisdictions offer the best tax structure by identifying the types of tax payable as well as the most favourable, tax efficient jurisdiction in which to incorporate.
Panama has increased its compliancy in recent years. In 2009 Panama converted to using International Financial Reporting Standards (IFRS) utilising accounting principles that complied with the International Accounting Standards Committee (IASC). This, along with other measures taken, has done much to improve the general perception of Panama as an offshore jurisdiction.
Panama employs a strictly territorial tax system. Due to this the only income earned from Panama is taxed, income derived from outside Panama is not subject to taxation. Below is an overview of the tax and accounting regulations for Panama:
Non-resident companies in Panama are exempt from paying the following:
- Income tax.
- Capital gains tax.
- Interest income tax.
- Sales tax.
- Dividends tax.
Annual franchise tax:
- This is the only tax payable by non-resident offshore companies and is payable on the anniversary of the date of the original incorporation of the company.
- The annual franchise tax is approximately US$300. If the payment is not made before the deadline then a late delivery charge will be made.
International aspects of taxation:
- Panama has concluded mutual legal assistance treaties with the US, Costa Rica, Columbia and a number of other South American countries. These treaties cover serious crime but do not cover fiscal crime. The Panama government does not submit to requests on fiscal matters.
- Panama has agreed to launch negotiations regarding an agreement towards a double tax avoidance agreement with Japan, Singapore and France. These have yet to be concluded.
- A number of anti-money laundering decrees have been agreed and implemented.
Annual reporting requirements:
- There are no statutory accounting and audition requirements for a Panama IBC.
Information Security & Factors that Contribute to Data Leakage in the Ukrainian & UK Banking Sector
One of the most important regulatory banking documents on information security is the Regulation on bank secrecy and confidential information, which exists in every bank. This document entered into legal force by the banking sector’s order.
Troika Lenders Visit Cyprus Following Withdrawal From Bailout Programme
Representatives from the troika of Cyprus’ international lenders, the International Monetary Fund, European Commission and the European Central Bank, recently visited Cyprus for conducting their 4th post-scheme investigation following the islands recent withdrawal from the economic adjustment programme as agreed with the terms of the bailout.
The EC's Plans to Reduce NPLs in Europe May be Beneficial for Cyprus
Last month, the European Commission proposed an ambitious and comprehensive package of measures to tackle non-performing loans (NPLs) in Europe, making the most out of the promising progress already made in reducing risks in the banking sector.
Anti-Money Laundering measures: The Policy of Combating the Legalisation for Laundering Illicit Income
Money laundering is the act of transforming money or other money obtained as a result of any illegal activity, in money or investments that appear legal, so that their illegal source cannot be traced.
Yellowslip Conversion from MEU1 to MEU3 for UK Nationals Living in Cyprus
Following the result of the referendum of 23rd June, Britain will in due course be leaving the European Union. The British High Commissioner outlined the processes currently being followed within government to prepare for the Brexit negotiations in order to find an outcome for the UK nationals living abroad in Cyprus.
ICOs: Can Accountants & Companies Benefit from Their Distribution?
Initial Coin Offerings (ICOs) are proving to be a common and trendy new way for businesses to raise capital, however what role are Accountants playing in this dynamic market?
The Cyprus Passport Scheme Under Scrutiny Again, However Should it be?
A number of recently released documents show that the Cyprus passport by investment or naturalisation scheme remains a profitable source of revenue for the island, making almost €5 billion since it started in 2008 and granting EU citizenship to 1,654 foreign investors and their families.
Cyprus vs Malta: Tax & Investment Considerations
Malta and Cyprus undeniably have the most favourable citizenship by investment programmes in Europe. Many individuals are using such schemes as a means of significant wealth protection and gaining dual nationality; while smaller economies within the EU receive financial compensation for the privilege.