Panama - Territorial tax system replaced with worldwide tax system

"Late on December 30th, Law No. 120 of 2013 was passed, and two articles were included to amend the tax code. One states:

"Every natural or juridical, domestic or foreign, who receives any taxable income within or outside Panamanian territory, must pay taxes."

The law made it clear that those who are residents, citizens or companies in Panama will have to pay tax-based on their worldwide income instead of only Panamanian-sourced income."

http://dollarvigilante.com/blog/2014/1/ … all-o.html



January 6: Newly enacted law in Panama replaces the territorial income tax system with a worldwide tax system.

Law No. 120 of 2013 was published on 30 December 2013.

However, there are reports that the Ministry of the Economy and Finance plans to introduce legislation to repeal the newly enacted worldwide tax system and to support a return to the previous territorial income tax system.

Read a January 2014 report [PDF 147 KB] prepared by the KPMG member firm in Panama: Panama’s Income Tax Regime: Tax System will remain Territorial

http://www.kpmg.com/global/en/issuesand … ystem.aspx