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Asset Protection through Offshore Banking in Panama

Learning about the tax aspect of offshore banking in Panama is very important. When looking to place your assets offshore for increased protection, there are many aspects to take into consideration. The following are some pointers about taxation in Panama.

Foundations are not taxable in Panama. Foundations have a $250-$300 annual renewal fee, and that is it. The banks may charge a service charge, but that is not tax related. When the foundation owns a corporation and that corporation has income, as long as that income is not generated in Panama, it is not taxable. There is no capital gains tax for foundations. In the event of death there is no inheritance tax or estate taxes for the beneficiary of the foundation.

This is because the shares exist in Panama and the gain has then occured in Panama. This is written in Section 701(e) of the Panama tax code; "profits derived from the sale of corporate shares and personal property are taxable income...the taxpayer will be subject to Capital Gains tax at a fixed rate of 10%".

Foundations are not taxable in Panama. They also have a $250-$300 annual renewal fee, but that is it. The banks may charge a service charge, but that is not tax related. There is no capital gains tax for foundations. In the event of death there is no inheritance tax or estate taxes for the beneficiary of the foundation. When the foundation owns a corporation and that corporation has income, as long as that income is not generated in Panama, it is not taxable.

Depending on what your home country is, the tax laws may vary. It is one thing to want to protect your assets from other people or business competitors, but to hide your assets to avoid paying any taxes is another and is not recommended. There are strategic ways to do your tax planning and it is suggested that you consult a local tax lawyer to learn about the ins and outs of taxation in your country.

Article Source: http://www.uberarticles.com/articles

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