For Multinationals
SEMLey 41/2007
Multinational Company Headquarters
Regional management services
Income Tax5%Art. 21
Dividend Tax0%
Key Benefits
Reduced CIT: 5%
Exempt dividends: 0%
Expat social security exemption: 100%
Multinational Required
View DetailsEMMALey 159/2020
Multinational Manufacturing Companies
Manufacturing services
Income Tax5%Art. 17
Dividend Tax5%
Key Benefits
Manufacturing CIT: 5%
Operating Notice exempt: 0%
Legal stability: 10 años
Multinational Required
View DetailsFor Any Company
ZLCLey 8/2016
Colon Free Zone
International trade, logistics
Income Tax0%Art. 46
Dividend Tax5%
Key Benefits
Foreign source CIT: 0%
No commercial license: Exento
Duty-free imports: 0%
Panamanian Company
View DetailsPPLey 41/2004
Panama Pacifico
Aviation, logistics, call centers, high-tech
Income Tax0%Art. 60
Dividend TaxStandard
Key Benefits
CIT listed activities: 0%
No commercial license: Exento
Reduced overtime: 25%
Panamanian Company
View DetailsCDSDecreto Ley 6/1998
City of Knowledge
Research, innovation, education, tech parks
Income Tax0%Cláusula Quinta.E
Dividend Tax0%
Key Benefits
Innovator CIT: 0%
VAT exempt: 0%
Benefits duration: 25 años
Panamanian Company
View DetailsZFLey 32/2011
Free Trade Zones
Private free zones in any location
Income Tax0%Art. 33
Dividend Tax5%
Key Benefits
External operations CIT: 0%
Flexible location: Nacional
Reduced overtime: 25%
Panamanian Company
View DetailsFull Comparison Table
| Regime | Income Tax | Dividend Tax | Panamanian Company | Labor Flexibility |
|---|---|---|---|---|
SEMLey 41/2007 | 5%Art. 21 | 0% | — | |
EMMALey 159/2020 | 5%2% minimum with tax creditArt. 17 | 5% | — | |
ZLCLey 8/2016 | 0%External operationsArt. 46 | 5% | — | |
PPLey 41/2004 | 0%Listed activitiesArt. 60 | Standard | 25%(standard 50%) | |
CDSDecreto Ley 6/1998 | 0%Innovative companiesCláusula Quinta.E | 0% | — | |
ZFLey 32/2011 | 0%External operationsArt. 33 | 5% | 25%(standard 50%) |
Legal Disclaimer
Information is for guidance only. Consult with legal advisors for your specific case.
Data updated based on legislation current as of January 2025.