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Panama Taxes - Explained!

Panama's taxes are quite complex with many exceptions and rules for the employer, many of which are unknown to many businesses even after several years. Don't let the Panamanian labor courts come after you, stay in compliance with all the tax laws!

In Panama the labor cost is about 55 % higher than the actual pay agreed upon. In other words, if you agree on the monthly salary of 1000 dollars per month, the corporate cost is about 1550 dollars and that does not count overtime, working on holidays and weekends.

Make sure to study this information in detail to manage your business successfully!

Personal Income Tax
The first 11000 dollars in Panama are generally income tax exempt. An employee will be subject to several deductions though.
All Panama sales now have to be entered on a fiscal printer subject to government inspections.

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