The only tax paid by Panama Corporations is the flat annual corporate franchise tax of US$250.

As of the 26th of December 2002, through Law number 61 of 2002, the government of Panama has officially raised the flat annual corporate franchise tax ("tasa única") from US$150.00 per year to US$250.00 per year. However, there is a legislation project that may officially raised the annual franchise tax from US$250.00 per year to US$300.00 per year.

According to the Law, the corporate franchise tax payment deadlines are as follows;

Late Payment Penalty:

If the flat annual corporate franchise tax ("tasa única") is not paid on or before the due dates mentioned above, the entity is charged a late penalty of US$50.00 per year that the tax is not paid.

Second Late Payment Penalty:

If the flat annual corporate franchise tax ("tasa única") is not paid after 1 "deadline" period, the entity will be charged a second late penalty of US$250.00.  The above applies to all "entities" (corporations, foundations, or trusts) registered at the public registry of Panama.