BANKING IN PANAMA
Banking in Panama.
The Panamenian Banking System has a safe and solid system. In addition to this,
the political and financial stability of the country, the strength of their currency,
which ensure protection by the laws and regulations, as well as the supervision of
the banking system.
The Panamanian Banking System is a system of proactive risk reputation, and
protection to customers.
Another important factor in the Panamanian Banking System, is the confidentiality.
Therefore, the banking accounts are object of a strict confidentiality.
There is a great presence in Panama of the main international banks.
So, it is clear that Panama offers many significant advantages to develop the activity
of private banking and opening accounts.
The center of Panama has approximately one hundred (100) banks, most of them
foreign banks and with a strong currency like the dollar.
Our Panamanian banking system, also offers attractive rates of interest to investors
and account holders.
The Panamanian Banking Act was recently amended in order to have a more
strictly and efficiently law, supporting that way the financial sector.
A Panamanian corporation offers the following benefits:
No reporting requirements (since Panama has a territorial tax system, while the income is
earned offshore or from exempt sources, such as interest on bank accounts, then the
corporation is not required to present tax returns or audited accounts).
While the income earned by the company is not Panamanian-source income, there will not
be any income tax due in Panama and hence no tax returns necessary here.
Funds and accumulated offshore profits can be deposited or invested in any country in the
world without becoming subject to taxation in Panama.
It is possible to keep a business under direct control while maintaining complete
confidentiality. This is possible because the names and details of the beneficial owners are
not publicly available, since they are not filed at the public registry.
The company is not required to file any changes to ownership schedule, after the
registration is complete, which means that only the directors of the company will know who
the shareholders are (since they maintain the company records and will be responsible for
the issuance of the share certificates).
It is not required to maintain a legal address, such as a Registered Office in Panama.
Nevertheless, every Panamanian corporation has a Registered Agent in Panama, which
must be a lawyer or a law firm.
There are no Citizenship or residency requirements or restrictions with respect to Owners,
Directors and Officers of the company.
Shareholders' and Directors' meetings may be held anywhere in the world.
Shares of the company may be issued in a registered form or to "Bearer", known as bearer
shares.
One person may hold all three offices of the President, Corporate Secretary and Treasurer
of the Company.
Other common advantages of Panama's IBC's are:
Asset Protection
Income Tax Reduction or elimination
No inheritance, succession or gift taxes
Protection from inflation, since Panama's currency (the Balboa) is pegged to the US dollar,
in Panama there is no inflation upon the devaluation of the Balboa. Nevertheless, the
Panamanian economy is subject to the fluctuations of the US Dollar, particularly against
the Euro.
Freedom from currency exchange control
Reduction in legal liabilities, since the company has limited liability
Reduction in operating expenses
Easy access to North American and European Capital Markets
No International Trade Tariffs
No annual tax return requirements
No import/export quantity limitations
Possible uses of a foundation are:
1.
Asset Protection – to protect assets against excessive taxation, creditor
claims, political instability or forced heirship rules;
2.
Business – to manage profit sharing or pension plans for employees; to
hold shares, participation or interests in public or private companies; to
collect royalties;
3.
Charitable Purposes – to carry on scientific, philanthropic, religious,
humanitarian or educational purposes, or to manage funds or assets for
such purposes;
4.
Family – to protect closely held businesses, providing continuity into 2nd
and 3rd generations by preventing property-splitting; to protect minors,
disabled persons or those incapable of managing their own assets; to
manage payment of income or distribution of assets to family members or
to provide for their education, housing or maintenance;
5.
Investment – to invest in shares, bonds, mutual funds, bank deposits or
other assets; to own real estate or other assets of considerable value –
such as works of art.
A Foundation cannot be established for commercial or profit-making purposes.
Where a business is to be undertaken, it is appropriate for the Foundation to own
the shares of the company which runs the business. The Foundation should not
own and run the business directly. A Foundation may, however, receive passive
income – such as from rental properties or dividends