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.

Take the next step, we are here to help.

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Open a Panama bank account.

  Resources:

Cyprus Regulatory Update: Shell Company Definition & Exceptions

Cyprus Regulatory Update: Shell Company Definition & Exceptions

The Central Bank of Cyprus has released new guidance for all credit institutions on the island, refining the definition for shell companies and subsidiary entities; coming into effect from November 2018, which are detailed as follows:

Singapore Variable Capital Company VCC: New Features & Benefits

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The introduction of the VCC is a significant positive for the Singapore funds industry. Its aim is to retain Singapore as an attractive business destination and to keep investors wishing to domicile locally.

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Challenges of Our Time: Cryptocurrencies & Their Regulation

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The very concept of cryptocurrencies derives from technologies and the creation of alternatives to existing payment systems, which for the most part is caused by the negative consequences of financial crises and the injustice within the sphere of financial and legal regulation. Many people are convinced that the cryptocurrency is likely to become an alternative to the established global financial system and open new opportunities to those segments of the population and citizens of those countries that are deprived of the opportunity to work with the banking financial system.

The Tax System in Poland: Benefits & Overview

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The reasons of abolition of the Company Secretary in UK Private Companies

The reasons of abolition of the Company Secretary in UK Private Companies

The role of Corporate Secretary can be a position in a private sector company or within the public sector organisation. In large, publicly-listed corporations, a Company Secretary is typically named a Corporate Secretary or just a Secretary. The Company Secretary is responsible for the efficient administration of a company, particularly with regards to ensuring compliance with statutory and regulatory requirements and also for ensuring that decisions of the board of directors are implemented.

The Dematerialisation of Shares in the UK: Current Update & Assessment

The Dematerialisation of Shares in the UK: Current Update & Assessment

Business is an area that is continuously developing. An integral part of both business and economics are companies. It is possible to say that companies dictate the conditions of the market to a certain extent. Any public or private company has its own shares; a share is a security that provides a portion of ownership of the company and gives the holder the right to a part of the profits.

Current Information on the Payment of Cyprus Taxes for Pensions & Rental Income

Current Information on the Payment of Cyprus Taxes for Pensions & Rental Income

Cyprus employees who are considered to have tax resident status, pay tax on their global income. Employees not considered to be tax resident are only charged for specific types of income that are originating from Cyprus-based sources.