Panama Corporate Income Tax
Detailed corporate income tax rates and rules for Panama in 2026.
Panama imposes a 25% corporate income tax on income derived from Panamanian sources. Foreign-source income is exempt. Companies operating in free trade zones (such as the Colón Free Zone) enjoy significant tax incentives, including exemptions from income tax on certain activities. Multinational companies may benefit from Panama's Multinational Enterprise Headquarters (SEM) regime, which provides tax benefits for regional headquarters. Companies must make estimated tax payments and file an annual return. Panama does not have CFC rules or thin capitalization rules in the traditional sense, reflecting its territorial approach.
Standard Rate
25%
How Panama Corporate Tax compares
Panama’s corporate tax rate of 25% is the 69th highest of 203 countries TaxAtlas tracks, above the global average of 22.2% and North America’s regional average of 22.3%.
