I wanna know about offshore in Panama?
Why offshore provider place Panama in the number one offshore jurisdiction in the world? What is so special in there?
- wcruzqLv 51 decade agoFavorite Answer
Panama has become one of the world's favorite offshore jurisdiction for a lot of reasons.
First the corporation law was enacted in 1927, and it hasn't suffered major changes to this date. The law is based out of the old Delaware Corporation Law, and it still offers the possibility of issuing bearer shares. Something that other popular offshore jurisdictions are a bit reluctant to offer.
Second, Panama has the biggest offshore banking center in the world (the first is Switzerland). Actually there are over 80 banks with offices in Panama that are able to engage in local and offshore banking. Panama's Banking Law also allows a lot of privacy to the account holders, therefore the beneficial owners identity is protected. Of course if there is a due process of law where an account holder is under investigation for drug trafficking, money laundering of drug traffic funds, terrorisim, etc.
Third, Panama is a tax haven, meaning that Panama only taxes operations done inside the territory of Panama. Those operations done outside of Panama aren't taxed. This is one of the main reasons to use a Panama IBC, because if you use it to buy merchandise in China and sell it in the US for example, you wouldn't have to pay income taxes in Panama, and if you structure it correctly, you wouldn't have to pay taxes in the US as well, therefore increasing your profits. Also banking operations in Panama are tax free, and you don't have to pay income tax on the interest earned from the money you keep in the bank.
Fourth, as you can use bearer shares for the Panama IBC you can keep your identity as the beneficial owner very private. Basically the only persons that know who the beneficial owner is are the resident agent, and the bank. You can also structure ownership of the corporation with a Private Interest Foundation or a Trust, and even build another layer of privacy around your Panama IBC.
Fifth, Panama has enjoyed a stable economy, and it was the first country outside the US to use the US Dollar as their currency. Panama has done so since 1904 because of the Taft Agreement, allowing Panama such a concession. That has enabled Panama to keep a stable economy, build a major financial center, and keep the lowest inflation level in Latin America for the last 80 years.
Sixth, Panama as a country has also been quite safe. In fact recently it has ranked high in the best countries to retire list. Also Panama is a very cosmopolitan country enjoying many of the first world ammenities. It's also outside Hurricane Alley in the Caribbean, and Panama hasn't suffered any major earthquakes in the last century.
I think that can help you understand a bit more about offshore and Panama. There are a lot of books you can read to understand the subject. Also there are a lot of resources on the web where you can read about it.
Good luck!Source(s): http://www.gloscorp.com Global Offshore Services Corp. Legal & Business Consulting in Panama
- 1 decade ago
Panama is the best offshore jurisdiction because their structures, Panama wasn't made deliberately, but their geographical position. There is a lot of benefits incluiding the Panama cannal, shipping, intelectual properties, Colon Free Zone, Real Estate Boom, Retirement Environment. Today seems like the perfect time for this jurisdiction. There is a very good offshore manual in the internet www.geocities.com/derechoonline/index.htmSource(s): www.geocities.com/derechoonline
- 1 decade ago
Panama has the strongest banking secrecy laws in the world. Panama has truly anonymous corporations and foundations. Panama has no tax treaties with any other country and is truly unique in this area of no tax treaties. panama also has large multi-billion dollars banks. Panama is stable politically and not dependent on tourist dollars. Panama uses the US dollar as its currency. For more information on Panama as an Offshore Tax Haven go here:Source(s): http://www.panamalaw.org/offshore_bank_account.htm... http://www.panamalaw.org/attributes.html http://www.panamalaw.org/bearer_share_corperation.... http://www.panamalaw.org/panama_corporations_panam...
- Anonymous4 years ago
What it means and what makes them special is simply that their government has decided NOT to charge taxes to its citizens or companies based there. However they make up for the lack of such revenues via fees, lots of them. Most of the offshore banks based in the Cayman Islands are nothing more than one room, one person and a set of computer servers. The US however wants countries like Cayman to become more stringent because it is easier to launder money or evade taxes with such money havens.