Panama's headline corporate income tax (CIT) rate is 25.
The headline personal income tax (PIT) rate is 25.
The standard VAT/GST (or equivalent consumption tax) rate is 7 (movable goods and services transfer tax). Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
Panama operates a pure territorial tax system: income tax applies only to Panama-source income, for residents and non-residents alike, regardless of nationality, domicile, or residence. Because of this, residency has limited practical relevance - mainly affecting withholding requirements and treaty-benefit eligibility. Where residency status is assessed, an individual is generally resident if present in Panama more than 183 days during a fiscal year (or the immediately preceding one) or if Panama is their center of vital interests. A company is generally resident if it carries out commercial activities or a support function from Panama with local employees, though foreign corporations can register for withholding-tax purposes.
Panama has no Controlled Foreign Company rules.
Panama has no thin capitalization rules.
Panama has 17-18 double tax treaties in force, including Spain, the UK, France, the Netherlands, Luxembourg, Portugal, Mexico, South Korea, Singapore, Israel, Italy, Qatar, the UAE, Vietnam, the Czech Republic, and Barbados. Panama signed and ratified the OECD's Multilateral Instrument (ratified by Panama's National Assembly October 15, 2020). Notably, Panama has no comprehensive income tax treaty with the United States or Canada.