Panama — Tax: Corporate Tax

Why this matters

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Key facts

• Combined statutory corporate income tax rate (national plus sub-national): 25% (2026)
• Central government rate: 25% (2026)

Steps

1. Obtaining a Tax Identification Number (NIT) — The first step for a foreign company is to obtain a tax identification number (NIT) from the Panama Revenue Authority (DGI). This can be done by submitting an application, along with supporting documentation, such as a copy of the company's articles of incorporation and a letter from the company's authorized representative.

Costs

• Obtaining a NIT: varies
• Annual corporate tax payment: 25% of net income

Timelines

• Obtaining a NIT: varies, typically 1-3 weeks
• First annual corporate tax payment: varies, typically due within 3-6 months after financial year-end

Required documents

• Articles of incorporation
• Copy of company's bylaws
• Letter from company's authorized representative

Common mistakes

• Failure to obtain a NIT in a timely manner, resulting in penalties and fines
• Incorrect calculation of net income, leading to incorrect tax payments

What this figure does not cover

This is the headline statutory rate. Deductions, reduced rates for particular sectors or regions, minimum taxes, local business taxes, withholding taxes and registration or filing procedures are not covered here. Check the national tax authority for your situation.