|Capital Gain Tax|
The capital gain tax is constituted
the income tax that taxes the
person who obtains profit from the
In cases of gain in disposals of real estate, taxable income will be the difference between the value of the sale and the basic cost of the good, including the improvements made and the expenses required to effect the transaction. Important that the legislation defines the basic cost as the lower amount between the cadastral value and value according to books for legal persons.
In the particular case that the purchase and sale of real estate is not within the ordinary course of the activity of the taxpayer. This will tax a fixed flat rate of 10%. However, the legislation establishes an advance of 3% that is obtained from the value of the alienation or the cadastral value whichever is greater.
In any case, the income tax on real estate for agricultural activities and for residential properties whose land value is up to US $ 10,000.00, the base of the calculation is equal to 3%.
In any case if the advance of 3% is higher than the amount resulting from 10% an affidavit can be presented accrediting the payment made. And it may be returned in cash or as a tax credit for the payment of taxes.
At the same time the tax legislation has special treatment when the profit originates on the sale of negotiable securities. The tax rate is 5% on the basis of the difference between the sale price and the book value established by the financial statements as the basic or acquisition cost of the mentioned amount.
G. Norms of adaptation to the Treaties or Agreements to avoid Double Taxation.
The transfer pricing regime is designed to regulate for tax purposes transactions between related parties, in the terms defined by this Chapter, so that the consideration between them are similar to those between independent parties.
The benefits of the Treaties to Avoid Double Taxation signed by the Republic of Panama with other countries and which have entered into force shall only apply when the taxpayer proves at any time that he is a resident in the country in question and Compliance with the provisions of the respective Treaty. For the purpose of proving the residence, the certificates issued by the foreign authorities will be authentic, after official translation and legalization.
H. Annual Single Rate (Corporate Tax).
Corporations, foundations of private interest, limited liability companies and any other legal entities, whether national or foreign, will pay at the time of their registration and in subsequent years a single annual fee of three hundred Balboas (B / .300.00), for Keep full force.
Foundations of private interest, will pay at the time of their registration a first annual rate of three hundred and fifty balboas (B / .350.00).
In subsequent years the payment for this concept will be four hundred balboas (B / .400.00), to maintain the full validity
For all legal purposes, the validity of the company or foundation shall be understood to be valid in the Public Registry of Panama. This obligation does not extend to non-profit organizations, cooperatives and civil societies.
Each time the taxpayer incurs a non-payment of the tax for three consecutive periods, it will have the effect, in addition to the surcharge, of a fine of three hundred Balboas (B / .300.00) and the annotation of a marginal one indicating that they are In default status When the taxpayer pays the delinquent rates with their respective surcharges and the amount of the referred fine, there will be a reestablishment of the services of the Public Registry of Panama and the lifting of the marginal annotation.