Panama Caters to Firms with Overseas Income with new Company Registration System

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Panama have recently announced that going forward, any Companies within the jurisdiction that have no official local income and earn their profit abroad have a new system to adhere to.

They must register themselves as what they are coining “Type B Entities” in the Panama Unique Registry of Taxpayers, as per Resolution 201-1254.

The Spanish term for such corporations: sociedad anonima, will no longer be obligated to file an annual income tax return, which has come as a welcomed relaxation for smaller firms within the jurisdiction, although officials note that in order to operate legitimately, they must still obtain a taxpayer identification number for reporting purposes.