Panama: Registration requirements for companies in Panama Pacific Area economic zone

New income tax return for use by companies established in a special economic zone

Panama Pacific Area economic zone

The tax administration (Dirección General de Ingresos—DGI) is developing a new income tax return for use by companies established in the Panama Pacific Area (Área Panamá Pacífico)—a special economic zone established by legislation in 2004 that provides for special tax treatment of companies established in the zone.

The aim of the new form (Form No.18) would be to allow eligible companies to declare income and expenses pursuant to the manner allowed under the 2004 legislation.

A mandatory registration period also is established for access to Form No. 18 via the e-Tax 2.0 system, and the registration requirements include:

  • Copy of the company registration resolution issued by the Panama Pacific Area economic zone agency
  • Explanatory memorandum addressed to the DGI requesting the registration of the company in the zone
  • Power of attorney granted to the legal representative
  • Copy of a valid ID or passport of the legal representative

Read a December 2021 report (Spanish) prepared by the KPMG member firm in Panama

 

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