2 This guide has been prepared by Baker Tilly Panama, an independent member of Baker Tilly International. It is designed to provide information on a number of subjects important to those considering investing or doing business in Panama. Baker Tilly International is the world s 8 th largest network of independent accounting and business advisory firms by combined fee income, and is represented by 161 firms in 137 countries and 27,000 people worldwide. Its members provide high quality accounting, assurance, tax and specialist business advice to privately held businesses and public interest entities. This guide is one of a series of country profiles compiled for use by Baker Tilly International member firms clients and professional staff. Copies may be downloaded from Doing Business in Panama has been designed for the information of readers. Whilst every effort has been made to ensure accuracy, information contained in this guide may not be comprehensive and recipients should not act upon it without seeking professional advice. Facts and figures as presented are correct at the time of writing. Up-to-date advice and general assistance on Panama matters can be obtained from Baker Tilly Panama, contact details can be found at the end of this guide. November 2014
3 Contents 1 Fact Sheet 2 2 Business Entities and Accounting Companies Partnerships Branches Limited Liability Micro-Enterprises Audit and Accounting Requirements Filing Requirements 5 3 Finance and Investment Exchange Control Banking and Sources of Finance Investment Incentives and Restrictions 7 4 Employment Regulations General Employment Matters Visas Trade Unions 9 5 Taxation Corporate Income Taxes Personal Taxes Employment Related Costs and Taxes Withholding Taxes on Payments Abroad Indirect Taxes Other Taxes Tax Incentives for Businesses 15
4 2 1 Fact Sheet Facts and figures as presented in sections 1 through 4 are correct as at 25 November Geography Location: Area: Land boundaries: Coastline: Climate: Terrain: Central America 75,420km² Time zone: GMT -5 Colombia and Costa Rica Caribbean Sea and the North Pacific Ocean Tropical maritime; hot, humid, cloudy; prolonged rainy season (May to January) and short dry season (January to May) Interior mostly steep; rugged mountains and dissected, upland plains; coastal areas largely plains and rolling hills People Population: 3.86 million (January 2014 estimate) Religion: Roman Catholic 85%, Protestant 15% Language: Spanish (official) and English Government Country name: Government type: Capital: Administrative divisions: Republic of Panama Constitutional democracy Panama City 10 provinces and three indigenous territories Political situation The unicameral National Assembly has 71 seats. The Head of State and the Head of Government is the President, who is elected by popular vote to serve a five-year term. The cabinet is appointed by the President.
5 Doing Business in Panama 3 Economy GDP per capita: US$11,037 (2013) GDP real growth rate: 8.4% (2013) Labour force: 1,777,005 (2012) Unemployment: 4.1% (January 2014) Currency (code): Panamanian Balboa (PAB) alongside the US dollar (USD); pegged exchange rate 1:1
6 4 2 Business Entities and Accounting The company forms available in Panama include the corporation and the limited liability company. Other business forms include partnerships, limited liability micro-enterprises, and branches. 2.1 Companies Corporations A corporation (sociedad anónima) may be formed by two or more natural or legal persons, and one or more of them may be shareholders, directors, officers, manager, agents, or liquidators of the corporation. Corporations are separate legal entities. There is no minimum share capital requirement. Corporations are administered by the general meeting of shareholders, and by a board of directors. Corporations are required to be registered in the Public Registry of Panama (Registro Público de Panamá) Limited liability companies A limited liability company (sociedad de responsabilidad limitada) may be formed by two or more natural or legal persons. Limited liability companies are separate legal entities. There is no minimum share capital requirement, and contributions may be made in money, goods or services. Contributions in kind must be fully paid up on incorporation. The liability of partners is limited to the contribution amount promised or made. The company s articles of association may state that an annual general meeting is required. The company is managed by natural or legal persons appointed by the articles of association. Limited liability companies are required to be registered in the Public Registry. 2.2 Partnerships Under a general partnership (sociedad colectiva), the partners are jointly and severally liable for the obligations of the partnership. Under a limited partnership (sociedad en comandita), general partners are jointly and severally liable for the obligations of the partnership, whereas the liability of limited partners is generally limited to the amount of their contributions.
7 Doing Business in Panama 5 Under a partnership limited by shares (sociedad en comandita por acciones), general partners have unlimited liability for the obligations of the partnership, whereas the liability of limited partners is generally limited to the value of their shares. 2.3 Branches A foreign company may establish a branch in Panama by registering in the Public Registry and by submitting certain documentation. 2.4 Limited Liability Micro-Enterprises Natural persons may establish a limited liability micro-enterprise (microempresa de responsabilidad limitada) if all qualifying conditions are satisfied. Limited liability micro-enterprises must be incorporated with the Micro, Small and Medium-sized Businesses Authority (AMPYME). 2.5 Audit and Accounting Requirements Businesses are generally required to prepare financial statements that correctly reflect the operations of the business, and include a balance sheet, income statement, a statement of assets including changes in retained earnings, and a cash flow statement. Financial statements must be countersigned by an authorised public accountant if the business s capital or turnover exceeds set limits. Businesses with a commercial establishment in Panama are required to keep their accounting records in Spanish, and in the Panamanian Balboa or the US dollar. Supporting documentation and correspondence may be in the language in which it originates, but is required to be translated by a competent authority. Financial statements must generally be prepared using the International Financial Reporting Standards (IFRS). Companies listed on the stock exchange may alternatively use US Generally Accepted Accounting Principles (US GAAP). Small and medium-sized enterprises (as defined) may use the IFRS, IFRS for SMEs, or national standards. 2.6 Filing Requirements Financial statements must be prepared within 120 days following the closing date of the fiscal period and be made available to the competent authorities.
8 6 3 Finance and Investment 3.1 Exchange Control There are generally no foreign exchange controls. Transactions exceeding set limits, and suspicious transactions, must be reported to Panama s Financial Analysis Unit (Unidad de Análisis Financiero (UAF)). 3.2 Banking and Sources of Finance Panama has no official central bank. However the state-owned National Bank of Panama (Banco Nacional De Panamá) undertakes banking operations. The Superintendency of Banks of Panama (Superintendencia de Bancos de Panamá) regulates and supervises the banking sector. Commercial banks operating in Panama provide the majority of financial services. The Panama stock exchange (Bolsa de Valores de Panamà, S.A. (BVPA)) provides a marketplace for listing and exchanging securities. Venture capital investors provide investment in Panama.
9 Doing Business in Panama Investment Incentives and Restrictions For business related incentives, see 5.7. There are generally no restrictions on foreign investment in Panama; however, restrictions may apply in specific circumstances.
10 8 4 Employment Regulations For employment tax considerations, see General Employment Matters National employment standards Legislation provides minimum rights and conditions of employment in Panama, including maximum daily and weekly working hours, rest periods, public holiday entitlement, and paid annual leave entitlement. Employment contracts must generally be concluded in writing and be signed by both parties. There must be three copies; one for the employer, one for the employee, and one to be submitted to the relevant authority. A written contract of employment must include: Name, nationality, age, sex, marital status, address and identification number of the parties Names of dependent individuals living with the employee The work or services to be performed Place or places where the work or services are to be performed Duration of the contract or a statement that it is indefinite Duration and regular division of the working day Salary and date of payment Place and date of the conclusion of the contract, and Signatures or fingerprints of the parties. An employment contract may be terminated in certain circumstances, including mutual consent, end of the agreed term, completion of the work under the contract, resignation by the employee, or by a unilateral decision of the employer as permitted by legislation. An employer may generally only terminate an indefinite contract of employment where there is just cause; however, this does not apply in certain circumstances, including in respect of employees with less than two years continuous service. Justifiable reasons for an employer to terminate a contract of employment include reasons of a disciplinary nature, reasons connected with a failure by the employee, and economic reasons. Employers are generally required to provide employees with 30 days notice, or payment in lieu of notice. Employees may terminate a contract of employment by providing 15 days notice (two months notice for technical workers). If the
11 Doing Business in Panama 9 required notice period is not provided, the employee is required to make a payment to the employer. Employees are generally entitled to severance pay from their employer upon the termination of a contract of indefinite duration. Employers are generally required to maintain a workforce in which 90% of ordinary workers comprise of Panama citizens, Panama or foreign spouses, or individuals with at least 10 years of residence in Panama. Specialised or technical foreign staff may not form more than 15% of the total workforce. Permission from the relevant authority is required to alter these limits Pensions and other benefits Social security contributions (see 5.3.3) generally provide associated benefits. 4.2 Visas Citizens of certain countries do not generally require a visa to visit Panama. Visas available for entry to Panama include tourist visas and short-stay visas. For further information on Panama visa requirements, visit There are generally no restrictions on foreigners purchasing real property in Panama; however, foreigners may not purchase land within 10km of the Panama border. 4.3 Trade Unions One or more unions, federations, confederations, or confederations of workers may negotiate and conclude collective labour agreements with an employer, a group of employers, or one or more employers organisations.
12 10 5 Taxation Facts and figures as presented in section 5 are correct as at 25 November Corporate Income Taxes Resident and non-resident companies are generally subject to tax only on their Panama source income, so they are exempt from tax on income which is derived from outside of Panama. Terms of any relevant double tax treaty may apply if a tax residency certificate is provided to tax authorities. The standard corporate income tax rate is 25%. Companies in which the state has a shareholding exceeding 40% are generally subject to tax at the rate of 30%. Companies whose taxable income exceeds USD1.5m are generally subject to the greater of tax calculated by applying the standard corporate income tax rate to net income (as defined), or tax calculated by applying a rate of 4.67% to gross income (as defined). The authorities have discretion to grant exemption from CAIR for up to three years. Branches of foreign companies are generally subject to an additional branch profits tax (deemed dividend tax) of 10% on their after tax profits. Taxable income must generally include any taxable capital gains (ie those from business, industry, trade or agricultural activities), subject to alternative rates for certain gains and possible exemptions. Capital gains are generally taxed at a rate of 10% of the profit. If the withholding tax deducted by the buyer is a smaller sum the seller may elect for that to be the final liability. The withholding tax for real estate is 3% of the higher of the sale price and the value of the property in the public registry, and for securities it is 5% of the sale price. Capital gains which are not part of the taxpayer s business activities are generally subject to tax at the rate of 10%. For certain gains (ie in respect of real property or securities transfers) an advance withholding tax is payable (3% for real property and 5% for securities), which may be final, or the 10% capital gain may be assessed. Unutilised losses may generally be carried forward for five consecutive years, subject to a maximum of 20% of total annual loss. Carried forward losses cannot offset more than 50% of taxable income. Losses cannot be carried back. Group tax consolidation is not available in Panama; consequently losses cannot be offset against the profits of another company in the same group.
13 Doing Business in Panama 11 The tax year is generally the calendar year. Companies may request that a different 12 month period should apply. Tax returns are generally due for filing within three months of the end of the tax year. Companies may request an extended filing date. A corporate income tax advance for next year is calculated among current year, being payable in advance for next year in three installments on 30 June, 30 September and 31 December. Any remaining corporate income tax due is payable with the corporate tax return, and any excess payments are applied against future liabilities or refunded. 5.2 Personal Taxes Resident and non-resident individuals are generally subject to tax only on their Panama source income. Individuals are generally subject to tax on net income at the following rates: Taxable Income (USD) Tax Payable and Rate Up to 11,000 0% Over 11,000 50,000 15% Over 50,000 USD5,850 plus 25% on the excess Amounts paid for representation expenses are generally subject to withholding tax at the rate of 10% on income up to USD15,000, and 25% on income exceeding USD15,000. Capital gains which are not part of the taxpayer s business activities are generally subject to tax at the rate of 10%. For certain gains (eg in respect of real property or securities transfers) an advance withholding tax is payable (3% for real property and 5% for securities), which may be final, or the 10% capital gain may be assessed. Alternative rates may also apply to specific gains. There are no separate inheritance, gift or wealth taxes in Panama.
14 Employment Related Costs and Taxes Fringe benefits There is no separate fringe benefits tax. Unless specifically exempt, taxable benefits-in-kind form part of the taxable income of individuals and are subject to personal income tax Education tax Employers are subject to a 1.5% education tax on employee salary. Employees are subject to education tax at the rate of 1.25% Social security costs Employers are generally required to make social security contributions in respect of employees at the rate of 12.25% of employee salary. The employee contribution rate is 9.75%. An occupational accident insurance premium of up to 5.67% is required for employers. 5.4 Withholding Taxes on Payments Abroad The rates of withholding tax on the following payments made abroad to nonresident companies are generally: Rate Dividends 5%/10%/20% Interest Effective rate 12.5% Royalties Effective rate 12.5% (generally) For payments made to recipients in countries with which Panama has a double tax treaty, the rates of withholding tax may be reduced under the terms of the treaty.
15 Doing Business in Panama Indirect Taxes Transfer tax on movable goods and services (Impuesto sobre la Transferencia de Bienes Corporales Muebles y la Prestación de Servicios) is generally levied on the supply of goods and services in Panama, and the importation of goods. The standard rate is 7%. A 10% rate applies to public establishment accommodation services, and alcoholic beverages, and a 15% rate applies to tobacco products. Certain supplies are exempt, including exports, foodstuffs, medicines, and certain financial services. The registration threshold is average annual monthly income exceeding USD3,000, and average annual gross income exceeding USD36,000. Registered businesses can generally recover the tax with which they themselves are charged on their purchases of goods and services, subject to conditions and possible exceptions. 5.6 Other Taxes Stamp duty Stamp duty is generally levied on certain documents at the varying rates, subject to exemptions Immovable property tax An annual tax is generally levied on immovable property at progressive rates of up to 2.1%, subject to exemptions Immovable property transfer tax Immovable property transfer tax is generally levied on transfers of immovable property at the rate of 2% on the greater of the value as per the transfer deed, or the original cadastral value including improvements adjusted to current value by 5% per year Municipal tax Municipalities generally levy a monthly or annual tax on business turnover. Rates are variable and liabilities can range up to USD1,000 per month.
16 Operations notice tax An annual operations notice tax is generally levied on businesses at the rate of 2% of capital, subject to a minimum of USD100 and a maximum of USD60,000. Businesses are exempt from this tax if capital is less than USD10,000. For businesses established in a free zone, the rate is 1% of capital, subject to a minimum of USD100 and a maximum of USD50, Consumption tax Consumption tax is generally imposed on certain goods and services, including alcoholic beverages, tobacco products, jewellery, mobile phone services, and certain television services Minimum dividend tax Companies which distribute as dividends less than 40% of their post-tax earnings are charged a tax of 10% of the shortfall. The rate of dividend tax is increased to 20% for bearer shares Banks and insurance Additional taxes may apply to licensed banks and insurance companies.
17 Doing Business in Panama Tax Incentives for Businesses Free zones Business established in a free zone in Panama benefit from incentives, including exemptions from corporate income tax, import duties, and transfer tax on movable goods and services. Companies which are licensed as multinational headquarters are exempt from tax on profits from services provided to non-resident entities provided they themselves do not derive income from sources in Panama Other incentives Incentives are available to certain other businesses, including those in the tourism and agricultural industries.
18 Baker Tilly Panama José Rafael Reyes Partner T: +(507) Danilo Peña Segovia Tax Manager T: +(507)
Doing Business in Russia www.bakertillyinternational.com Contents 1 Fact Sheet 2 2 Business Entities and Accounting 4 2.1 Companies 4 2.2 Partnerships 5 2.3 Branches and Representative Offices 6 2.4 Individual
www.bakertillyinternational.com International Tax Contact Moscow Andrey Kirillov T: +7 (495) 783 88 00 email@example.com Corporate Income Taxes Resident companies, defined as those which
Country Tax Guide www.bakertillyinternational.com Country Tax Guide Germany Corporate Income Taxes Resident companies, defined as companies which are legally constituted in Germany, or which are legally
TURKEY CORPORATE TAX (KURUMLAR VERGISI) The basic rate of corporation tax for resident and non-resident companies in Turkey is 20%. Corporations in Turkey can be regarded as either limited or unlimited
Worldwide personal tax guide 2013 2014 Brazil Local Information Tax Authority Receita Federal do Brasil (RFB) Website www.receita.fazenda.gov.br Tax Year 1 January to 31 December Tax Return due date: Last
2015/16 FOREWORD A country's tax regime is always a key factor for any business considering moving into new markets. What is the corporate tax rate? Are there any incentives for overseas businesses? Are
The Expatriate Financial Guide to Germany German Tax Facts Introduction Tax Year Assessment Basis Income Tax Taxation in Germany occurs at a national and municipal level. The Ministry of Finance controls
TAXATION The following summary of material Cyprus, US federal income and United Kingdom tax consequences of ownership of the GDRs is based upon laws, regulations, decrees, rulings, income tax conventions
13. Taxation The system of taxation described below is derived from the Czech tax legislation and may be modified by a particular Double Taxation Treaty. The current tax system was introduced in January
The Expatriate Financial Guide to Spain Spanish Tax Facts Introduction Tax Year Assessment Basis Taxation in Spain occurs at a national level and at a regional ( Autonomous Community ) or municipal level.
Introduction Monaco is a sovereign principality. France is a guarantor of the sovereignty and territorial integrity of Monaco, while Monaco is to conform to French interests. Although the Prince is the
KPMG INTERNATIONAL Taxation of Cross-Border Mergers and Acquisitions Panama kpmg.com 2 Panama: Taxation of Cross-Border Mergers and Acquisitions Panama Introduction The signing of several Free Trade Agreements
INTERNATIONAL EXECUTIVE SERVICES Thinking Beyond Borders Tanzania kpmg.com Tanzania Introduction Taxation of individuals under the Income Tax Act 2004 (ITA) is on the basis of both residence and source.
THE FLORES LAW FIRM Attorney and Counselor at Law 9901 IH-10 West, Suite 800 San Antonio, TX 78230 TEL. (210) 340-3800 FAX (210) 340-5200 MEXICO TAXATION GUIDE I. RECOGNIZED MEXICAN BUSINESS ENTITIES A.
Doing business in Sweden www.pwc.se/doingbusinessinsweden 1. What type of presence do we require? 2. What other registrations do we need to be aware of? 3. What tax issues may arise now that we are operating
Doing Business in Mexico I N D E X INTRODUCTION I. LEGAL FRAME OF FOREIGN INVESTMENT II. PRINCIPAL TYPES OF ORGANIZATIONS III. TAX LEGISLATION A). General b). Income Tax Law c). Sole Tax Rate for Entrepreneurial
Worldwide personal tax guide 2013 2014 The Netherlands Local information Tax Authority Website Tax Year Tax Return due date Is joint filing possible Are tax return extensions possible Belastingdienst www.belastingdienst.nl
MALTA Jurisdictional Guide GENERAL INFORMATION The Republic of Malta is situated in the centre of the Mediterranean, south of Sicily, east of Tunisia and north of Libya. Malta gained its independence from
Chapter Avbreht, Zajc & Partners Ltd. Ursula Smuk 1 General: Treaties 1.1 How many income tax treaties are currently in force in? 44 income tax treaties are currently in force in. 1.2 Do they generally
Macau SAR Tax Profile Produced in conjunction with the KPMG Asia Pacific Tax Centre Updated: June 2015 Contents 1 Corporate Income Tax 1 2 Income Tax Treaties for the Avoidance of Double Taxation 5 3 Indirect
Worldwide personal tax guide 2013 2014 Canada Local information Tax Authority Website Tax Year Tax Return due date Is joint filing possible Are tax return extensions possible Canada Revenue Agency (CRA)
Doing Business in www.bakertillyinternational.com Preface This guide has been prepared by Baker Tilly, an independent member of Baker Tilly International. It is designed to provide information on a number
Saudi Arabia Tax Guide I IMPORTANT DISCLAIMER: No person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining
Bulgaria is a parliamentary republic situated in the heart of the Balkan Peninsula at the south - east part of Europe. It is a member of NATO since 2004 and of the European Union since 2007. The territory
2015/16 FOREWORD A country's tax regime is always a key factor for any business considering moving into new markets. What is the corporate tax rate? Are there any incentives for overseas businesses? Are
HONG KONG Corporate information: Hong Kong is the richest city in China, its economy is one of the most liberal in the world. It is a financial and commercial hub of global significance. Hong Kong is a
Worldwide personal tax guide 2013 2014 China Local information Tax Authority Website Tax Year Tax Return due date Is joint filing possible Are tax return extensions possible State Administration of Taxation
Sharing our experience Your guide to taxation in India www.fpinternational.com The tax treatment of our products if you return to India Whilst tax planning might be an important part of your overall financial
The Expatriate Financial Guide to Australian Tax Facts Australia Introduction Tax Year Assessment Basis Income Tax Taxation in Australia is mostly at a national/federal level with property taxes (council
KPMG International Taxation of Cross-Border Mergers and Acquisitions Colombia kpmg.com 2 Colombia: Taxation of Cross-Border Mergers and Acquisitions Colombia Introduction Cross-border merger and acquisition
Worldwide personal tax guide 2013 2014 Germany Local information Tax Authority Website Tax Year Tax Return due date 31 May 2013 Is joint filing possible Are tax return extensions possible 2013 income tax
DOING BUSINESS IN SPAIN CONTENTS 1 Introduction 3 2 Business environment 4 3 Foreign Investment 6 4 Setting up a Business 7 5 Labour 10 6 Taxation 12 7 Accounting & reporting 17 8 UHY Representation in
Investment and Doing Business in the Czech Republic 8 Residence permit The matters related to foreigner s stay in the Czech Republic are regulated by the Act No. 326/1999 Coll., Act on Foreigner s Stay
Helpful information on taxation, VAT and customs duties for operators involved in oil and gas exploration on the Faroe Islands Tax liability In addition to the ordinary tax regime in the Faroe Islands,
DOING BUSINESS IN SWEDEN CONTENTS 1 Introduction 3 2 Business environment 4 3 Foreign Investment 7 4 Setting up a Business 9 5 Labour 12 6 Taxation 14 7 Accounting & reporting 17 8 UHY Representation in
2016 BUDGET TAX GUIDE 1 2 This SARS pocket tax guide has been developed to provide a synopsis of the most important tax, duty and levy related information for 2016/17. INCOME TAX: INDIVIDUALS AND TRUSTS
CUBAN FOREIGN INVESTMENT LEGISLATION Decree Law 50 of 1982 ( Decree Law 50 ) was Cuba s first foreign investment act authorizing the formation of international joint-ventures with foreign investors. In
MADEIRA FREE TRADE ZONE (MFZ) 9 TH OF JULY 2014 MADEIRA FREE TRADE ZONE REGIME Autonomous Region since 1976 TOTAL AREA 741 Km2 (Madeira) 801 km2 (Archipelago) ABOUT MADEIRA CAPITAL Funchal (more than 100,000
Argentina boasts many natural resources, qualified human resources and the synergies deriving from our commercial partnership with countries like Brazil make it an attractive country in which to invest.
Colombia Taxation FUNDS AND FUND MANAGEMENT 2010 3.1 Taxation of funds Investment funds Investment funds and securities funds are not taxable in Colombia. These funds are deemed as non taxable as regards
TAXATION OF INTEREST, DIVIDENDS AND CAPITAL GAINS IN CYPRUS LAWS AND DECREES The Income Tax (Amendment) Law of 2005 The Special Contribution for Defence (Amendment) Law of 2004 The Assessment and Collection
Working and living in Denmark A brief introduction to tax, social security and immigration Tax 2015 1. Introduction This booklet contains brief information about the main aspects of individual taxation,
Canada Introduction Liability to Canadian tax is determined by residence status for taxation purposes and the source of income derived by an individual. Income tax is levied at progressive rates on a person
INVEST IN LEBANON INVEST IN LEBANON GUIDE SETTING UP YOUR BUSINESS IN LEBANON SETTING UP A LIMITED LIABILITY COMPANY OR S.A.R.L Required Documents/Tasks Company s By-Laws or Articles of Association Opening
Useful information for Export Promotion and Foreign Investment attraction in Uruguay 1. Export incentives 1.1. Temporary admission Supply imports for export industries are subject to a system that permits
A pocket guide to Singapore tax 2014 If it counts, it s covered Corporate taxation Corporate income tax ( CIT ) rate Standard rate is 17%. Tax exemption/rebates Singapore also offers a range of tax exemption
TRINIDAD AND TOBAGO Introduction TAX PRACTICE GROUP Multi-Jurisdictional Survey TAX DESK BOOK CONTACT INFORMATION Myrna Robinson-Walters M. Hamel-Smith &Co Eleven Albion, Dere and Albion Streets, Port-of-Spain,Trinidad
Starting business in Russia. Legal and tax framework Moscow 2015 2 Index LLC v Representation 3 Request for tax assistance for a prospect client (questions on taxation)7 Direct tax regime 7 Indirect tax
Tax l Accounting l Audit l Advisory Company Formation in Austria When considering an investment abroad thought must be given to taxation of income received as dividends and interest as well as any capital
Costa Rica Introduction A person s liability to Costa Rican income tax is determined by the territoriality principle, in opposition to the method of taxation based on residence status. However, residents
Description An LLC can only be formed by making appropriate filing with the state (see below). Owners are called members and the LLC may be managed by the members, similar to a partnership, or by managers
Singapore SMEs Introduction to Korean taxation July 2013 Topics to cover Korean tax system Overview Corporate Income Tax (CIT) Individual Income Tax (IIT) Value Added Tax (VAT) Customs Duty (CD) Entity
AFGHANISTAN INCOME TAX LAW 2009 An unofficial translation of the Income Tax Law 2009 as published in Official Gazette number 976 dated 18 th March 2009. This translation has been prepared by the Afghanistan
Guide for Tax Rates/Duties/Levies (Issue 11) Guide for Tax Rates/Duties/Levies Preface This is a guide provides a current and historical view of the rates for various taxes, duties and levies collected
MALTA: A JURISDICTION OF CHOICE LONDON - September 2012 Doing business from Malta can make a huge difference for your business UHY BUSINESS ADVISORY SERVICES LIMITED Updated September, 2012 An attractive
Brunei Darussalam Tax Profile Produced in conjunction with the KPMG Asia Pacific Tax Centre Updated: April 2013 Contents 1 Corporate Income Tax 1 2 Income Tax Treaties for the Avoidance of Double Taxation
I - FORMALITIES 1. Purchase and Sale of Properties: According to the Portuguese Civil Code, the purchase and sale of any immovable property, urban or rural, must be consigned on a notary deed. Due to the
INTERNATIONAL EXECUTIVE SERVICES Thinking Beyond Borders Syria kpmg.com Syria Introduction No personal tax declarations are required to be filed in Syria. Residents and nonresidents are generally taxed
I. INTRODUCTION Doing business in Hong Kong Tim Drew Partner firstname.lastname@example.org Karen Yan Associate email@example.com Robert Wang Solicitors 1 On 1 July 1997, sovereignty over Hong Kong transferred
GENERAL TAX ISSUES Income tax represents approximately 70 percent of the total tax revenue of the Australian Federal Government Income tax represents approximately 70 percent of the total tax revenue of
THE ADVANCED DIPLOMA IN INTERNATIONAL TAXATION June 2008 PAPER IIA UNITED KINGDOM OPTION ADVANCED INTERNATIONAL TAXATION TIME ALLOWED 3¼ HOURS You should answer FOUR out of the seven questions. Each question
Worldwide personal tax guide 2013 2014 Japan Local information Tax Authority Ministry of Finance Website www.mof.go.jp Tax Year 1 January to 31 December Tax Return due date 15 March Is joint filing possible
THE CODE of the Republic of Kazakhstan On Taxes and Other Obligatory Payments TO THE BUDGET (THE TAX CODE) Effective January 1, 2015 Developed by ITIC in cooperation with the Information Bulletin of the
Taxation The statements set out below are intended only as a general guide to United Kingdom ( UK ) and South Africa ( SA ) current law and practice and apply only to certain categories of person who are
Entering the American Market Stephanie L. Chapman, CPA Belfint, Lyons & Shuman, P.A. Look Before You Leap Location Matters Examples: Delaware, California, New York, Texas, Nevada, Florida Choice of Entity
Portugal Portugal Inês Reis, Pedro Pinto, Reis & Associados (member of Ius Laboris) www.practicallaw.com/6-375-8280 GENERAL 1. Is it common for employees to be offered participation in an employee share
Quality tax advice, globally GLOBAL GUIDE TO M&A TAX 2013 EDITION www.taxand.com CYPRUS Cyprus From a Buyer s Perspective 1. What are the main differences among acquisitions made through a share deal versus
Starting a Business in Israel Inspiration Invention Innovation Content: Page 1. Business Entities....... 2 a. Company...... 2 b. Foreign Company (e.g. a branch)...... 2 c. Partnership...... 3 d. Self Employed......
Insurance Tax Act 1 Date of signature: 8 April 1922 Full citation: Insurance Tax Act as published on 10 January 1996 (Federal Law Gazette I, p. 22), most recently amended by Article 1 of the Act of 5 December
Turkey is located as a bridge between two continents and in close proximity to Europe, the Middle East and the Caucasus. The proximity to the Balkans and the rest of Europe as well as to the growing emerging
Holding companies in Irel David Lawless Paul Moloney Dillon Eustace, Dublin Irel has long been a destination of choice for holding companies because of its low corporation tax rate of 12.5 percent, participation
14. Corporate Tax and Depreciation Corporate income tax is levied on income from the worldwide operations of Czech tax residents and on Czech-source income of Czech tax non-residents. Czech tax residents
Chapter 1 Legislative Background and Tax Reform The Chinese tax system has recently developed closely to the economic growth of the country. The entry of China into the World Trade Organization (WTO) and
Introduction of the tax law office of Jelle Folkeringa As the client, you determine the target. I will add my creativity, expertise and passion in my work in finding solutions for challenging tax affairs
SETTING UP IN France FACTS & FIGURES 02 NIS Global is an international group of independent accounting and advisory firms set up to provide mutual clients with support as they establish and maintain operations
Expanding into Brazil Support for your Business kpmg.ie Expanding into Brazil 1 Are you looking to expand your business into Brazil? Dynamic Irish businesses are looking to new markets to expand and grow.
GUIDE TO INVESTMENT FUNDS IN BERMUDA CONTENTS PREFACE 1 1. Introduction 2 2. Principal Regulatory Framework 2 3. Investment Fund Structures and Forms 4 4. Segregated Accounts Companies and the Segregation
International Tax Puerto Rico Tax Alert 12 June 2015 Tax reform enacted Contacts Francisco A. Castillo firstname.lastname@example.org Ricardo Villate email@example.com Michelle Corretjer firstname.lastname@example.org
TAX Mozambique Fiscal Guide 2011 kpmg.com Introduction: Mozambique Fiscal Guide 2011 Income Tax Business Income The residence basis of taxation is applied in Mozambique to the worldwide income of resident
GOLDEN VISA A quick residency guide for investors in real estate in Spain A quick residency guide for investors in real estate in Spain SPANISH GOLDEN VISAS This memo outlines the most relevant legal aspects
IBA REAL ESTATE COMMITTEE REAL ESTATE IN A NUTSHELL: MEXICO OWNERSHIP/RESTRICTIONS ON OWNERSHIP BY NON-RESIDENTS Name: LUIS MORENO, GERARDO CARRILLO Law Firm and City/Country: HAYNES & BOONE, S.C., MEXICO
Tax liability for non-resident enterprises engaging in service provision More and more European companies are facing the question of whether they actually have to pay taxes in China when providing services
CORPORATE INCOME TAX IN BALTICS Corporate Income Tax Rates in Baltics Country Standard rate Decreased rate Transfer of loses to next periods Latvia 15% 11% microenterprises Unlimited Lithuania 15% Estonia