The corporate tax rate is 25%.
For entities in which the State is the owner of more than 40% of the shares the corporate income tax rate will be 30% (25% if it is a telecommunications company).
Companies with USD 1.5M or more income are subject to an alternative minimum tax which, when calculated, is 1.17% of gross taxable income.
If the AMT results in a loss or ETR over 25%, the company may apply for a waiver within 5 days of submitting their corporate income tax return.
• Entities operating in Panama under the Multinational Companies Headquarters regime (In Spanish: el Régimen de Sede de Empresas Multinacionales or SEM) under Law No. 41 of 24 August 2007
• Panamanian trusts that are exempt from income tax under Section 35 of Law No. 1 of 1984.
Also known for the huge Panama papers-leak.