Panama laws has Roman Laws based system, which convenient any  Anglo system, in addition there are several merchant figures established based in the Anglo system. Includes eclectic concepts in tax and invest regime.

Panama Low tax Specialization

Panama has territorial taxation, thus only locally-sourced income is taxed. There are no 'offshore' regimes as such other than the Colon Free Zone and the export processing zones. There are more than 120,000 companies in Panama, most of which trade or hold assets externally. It is reasonably easy to form corporations, and privacy is assured. There are no tax treaties. Banking and shipping are Panama's two main 'offshore' industries. There are more than 140 banks, specializing obviously in South and Central American business, and Panama is the world's largest shipping registry. Once, it would have been fair to say that drug running and money-laundering were well-rooted in Panama, but with lots of US pushing and shoving, the country seems to have moved in a better direction lately. There is a small but growing stock exchange, and there is 'captives' legislation which is little used.

Moderate Taxation For Local Business

Foreign source profits is not taxable. Locally-sourced profits are taxed at up to 30%; for individuals this is the top rate of a sliding scale. There is no capital gains tax but gains on real estate count as income. There is a small withholding tax. All foreign-source income is tax-free. There is VAT, and import duties, but these have been reduced substantially in recent years. The Government's extensive investment incentive programs give substantial tax benefits to incoming investors in many sectors; and the free zones are ideal for locating regional distribution centers. No company with exclusively external assets and commercial operations will pay tax.

Panama Benefits

Minimization taxes is a legal way to optimize your profit, when you go offshore at least in Panama you recieve the following benefits:

• No tax reporting requirements.

• No income tax.

• No capital gains tax.

• No interest income tax

• No sales tax.

• No tax on issuance of corporate shares.

• No tax to shareholders.

• No stock sale or transfer tax.

• No capital stock tax.

• No property tax.

• No estate tax.

• No gift tax.

• No stamp tax.

• No succession tax.

• No inventory tax.

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Investment and International Trade

People go offshore to invest and protect asset there is nothing to concern about it, it is completely legal  invest as sovereign company, let us explain, your status quo as a person is changeable only when you resign to your nationality, the tax regimes treat people in a different way than corporations and you can choose the jurisdiction of the corporation when you are doing international business.

Throughout Triangulated trade you can diminish your domestic taxes increasing your costs by an intermediary company (your offshore company).

Simplify inheritance procedures and taxes.

Panama offshore system is among the best ways to protect your assests in the world,  when you constitute a Panama Corporation and you protect your identity with bearer shares, with Panama's Private Interest Foundation or Panama´s Trust; you will not lose the control of your goods,  neither you won't lose your anonymity.

Technically spoken, in Panama if you receive profits from foreign source you must not pay income, it doesn't matter if the company is incorporated in Panama.

Many people use offshore just to avoid taxes in their enterprises, in many countries that is a crime including United States, but nobody can deny you the right to invest in Panama, because of its geographic position the facilities of its financial center and tax regime.

Asset Protection

Moving your assets into a legal entity which will protect them from attack of rash litigations, seizure from government, attack from an estranged spouse. Indeed, anything which may threaten your hard earned wealth.

You could be broke by any of the following causes:

·  Breach of contract by no fault or fortuitous causes.

· A malpractice lawsuit or another kinds of lawsuits.

· Divorce.

· Fines for violating state or federal law due to actions of an employee.

· Claims from creditors if your business should fail.

· Catastrophic medical fees or anothers invoices.

· A huge tax bill and escalating penalties following a tax audit.

. Another reason to go Offshore is Tax Minimization