Panama Targets Shell Companies With New 15% Tax Law (1)

(Adds note on procedure, comment from president in bullets 7,8)

• Panama’s National Assembly approved a bill imposing a 15% tax on international companies that fail to demonstrate real economic activity in the country, as part of a broader push to tighten oversight of offshore structures and align with international tax standards, according to a statement from the chamber.
• The bill modifying Panama’s fiscal code was approved unanimously
• The law introduces “economic substance” requirements for companies receiving passive foreign income through Panama
• Firms that fail to prove real operations, including offices, employees and local decision making, to face a 15% tax ...