• Service: Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/15/2013

Panama - Permanent establishments, tax residency for companies 

August 15: Panama’s finance ministry (Ministerio de Economia y Finanzas) issued a decree addressing the tax treatment of permanent establishments in Panama and the rules for determining the tax residences of companies and individuals.

Decreto Ejecutivo No. 958 (published 7 August 2013) reflects rules concerning:

  • The taxation of permanent establishments (to be treated independently from their headquarters concerning income from activities)
  • Determination of a company’s tax residence (a company will be considered to be a tax resident of Panama if the Board of Directors, or their legal representatives, hold meetings in Panama; if the company's headquarters are established in Panama without regard to their source of income)

The decree also includes rules for determining the tax residents of individuals.

Read an August 2013 report (Spanish) [PDF 203 KB] prepared by the KPMG member firm in Panama: Se Reglamentan Disposiciones sobre Tributación Internacional

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