The Republic of Panama enjoys a Tax System that is based on the Territorial Principle of Taxation. This principle that Panama has embraced means that only Panama-sourced income is taxed.
An entity or an individual which has its activities outside of Panama will automatically escape taxation. On the contrary, an entity or an individual who engages in a business activity within Panama, receiving Panamanian sourced income, will be subject to pay income taxes annually.
In this sense, the Firm is quite capable of handling any tax situation that arises in our country, whether it is a tax planning situation or a dispute before the Tax Authorities or a situation related to the interpretation or use of Double Tax Treaties.