🇵🇦 Panama
Latin America & Caribbean · ISORA participant ·
Panama implements statutory country-by-country reporting requirements for tax enforcement. The country does not utilize automated bulk data matching, controlled foreign company rules, or interest limitation rules. In 2022, tax revenue accounted for 13.1% of GDP.Auto-generated summary of the verified data below; every fact traces to a source on this page.
13.1%
tax-to-GDP, general govt (2022, OECD)
8/12
enforcement powers assessed
Where the tax bite lands (2022)
Tax revenue by category, % of GDP, general government — OECD Revenue Statistics (Global).
Who collects it (2022)
| Level of government | % of GDP |
|---|---|
| Central government | 7.4% |
| Social security funds | 5.5% |
| State/regional government | 0.2% |
Tax-to-GDP over time
| 2000 | 2010 | 2019 | 2022 |
|---|---|---|---|
| 15.5% | 16.4% | 13.5% | 13.1% |
General government, OECD Revenue Statistics (Global).
2000 (15.5%) → 2022 (13.1%) · range shown 12.0%–16.8% (min–max scaled, not zero-baselined)
Headline statutory rates
As stated in PwC Worldwide Tax Summaries’ territory overview (fetched 2026-10-03) — the wording is PwC’s; source.
| Tax | Headline rate as stated |
|---|---|
| Headline PIT rate | 25 |
| Headline CIT rate | 25 |
| Standard VAT rate | Movable goods and services transfer tax: 7 |
| Headline individual capital gains tax rate | See Panama's individual tax summary for capital gain rates. |
| Headline corporate capital gains tax rate | See Panama's corporate tax summary for capital gain rates. |
| WHT rates (%) (Dividends/Interest/Royalties) | Resident: 5, 10, or 20 / NA / NA; Non-resident: 5, 10, or 20 / 12.5 / 12.5 |
| Headline net wealth/worth tax rate | NA |
| Headline inheritance tax rate | NA |
| Headline gift tax rate | NA NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement) NP stands for Not Provided (i.e. the information is not currently provided in this chart) |
Enforcement powers
Automated bulk data matching No — power absent
Self-reported to ISORA (International Survey on Revenue Administration), FY2022.
“ISORA indicator "Administration undertakes fully automated compliance checks based on data matching/analysis" — value: No”
Source: IMF ISORA — International Survey on Revenue AdministrationOECD / IMF survey data · derived from the administration’s own survey answer
Crypto-asset reporting No evidence found
Identified by the OECD Global Forum as relevant to the CARF; commitment reported as in process (as of 17 June 2025).
“India 2 , Panama 2 , and Viet Nam”
Source: OECD Global Forum — Jurisdictions committed to implement the Crypto-Asset Reporting FrameworkOfficial source · quote machine-verified 2026-10-12
Citizenship-based taxation No — power absent
Panama taxes individuals on a territorial basis (local-source income), not by citizenship (PwC Worldwide Tax Summaries).
“Panama's tax system is based on a territorial concept of income.”
Source: PwC Worldwide Tax Summaries — PanamaProfessional / legal analysis · quote machine-verified 2026-10-12
Controlled foreign company (CFC) rules No — power absent
Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026).
“OECD Corporate Tax Statistics: "Is there a controlled foreign company rule in place? · Not applicable" — No”
Source: OECD Corporate Tax StatisticsOECD / IMF survey data · derived from the administration’s own survey answer
Interest limitation rules No — power absent
Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026).
“OECD Corporate Tax Statistics: "Is there an interest limitation rule in place? · Not applicable" — No”
Source: OECD Corporate Tax StatisticsOECD / IMF survey data · derived from the administration’s own survey answer
Country-by-country reporting Yes — statutory power
Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (0).
“OECD Corporate Tax Statistics: "Is there a country-by-country reporting law in place?" — Yes”
Source: OECD Corporate Tax StatisticsOECD / IMF survey data · derived from the administration’s own survey answer
Public naming of non-compliant taxpayers No — power absent
Self-reported to ISORA (International Survey on Revenue Administration), FY2022.
“ISORA indicator "Administration is empowered to make public details of some / all taxpayers subject to administrative penalties imposed for non-disclosure" — value: No”
Source: IMF ISORA — International Survey on Revenue AdministrationOECD / IMF survey data · derived from the administration’s own survey answer
Mandatory disclosure rules No — power absent
Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026).
“OECD Corporate Tax Statistics: "Is there mandatory disclosure rules requiring the disclosure of Common Reporting Standards (CRS) avoidance or aggressive tax planning arrangements? · Not applicable" — No”
Source: OECD Corporate Tax StatisticsOECD / IMF survey data · derived from the administration’s own survey answer
Anti-avoidance regime detail (OECD Corporate Tax Statistics)
OECD-curated descriptions of this jurisdiction’s CFC, interest-limitation and CbCR rules. IP regimes are covered in their own section below.
CFC rules — 2 data points
| Is there a controlled foreign company rule in place? · Regime 1 | No |
| Is there a controlled foreign company rule in place? · Not applicable | No |
Interest limitation — 4 data points
| Is there a group ratio rule or similar type of rule in place? · Rule 1 | No |
| Is there an interest limitation rule in place? · Rule 1 | No |
| Is there an interest limitation rule in place? · Not applicable | No |
| Are there targeted rules to address specific risks not addressed by the general rule? · Rule 1 | No |
Country-by-country reporting — 4 data points
The OECD publishes this table without a reference year, so these entries are undated at source.
| Is there a country-by-country reporting law in place? | Yes |
| Deadline by which filings must be submitted | 12 months |
| Reports are required for MNEs with annual revenues above | EUR 750 million |
| Headquarter jurisidiction filing required from | 01-Jan-18 |
IP regimes
Patent-box and innovation-box preferential rates for qualifying IP income, as curated by the OECD Corporate Tax Statistics / QDD database. Each regime is shown as most recently reported; regimes the OECD records as abolished are kept and marked, not dropped.
General IP regime
As most recently reported for 2026.
Qualifying income is taxed at 0.00% under this regime, against a headline rate of 25.00%.
Qualifying assets: Patents, Software.
OECD Forum on Harmful Tax Practices assessment: Not harmful.
City of knowledge technological zone
As most recently reported for 2026.
Qualifying income is taxed at 0.00% under this regime, against a headline rate of 25.00%.
Qualifying assets: Patents, Software.
OECD Forum on Harmful Tax Practices assessment: Not harmful (amended).
Effective corporate tax rates
| Measure | Year | Rate |
|---|---|---|
| Capital allowances · Percentage of initial investment · Baseline · Country-specific interest and inflation rates · Acquired software · Not applicable | 2025 | 20.5% |
| Capital allowances · Percentage of initial investment · Baseline · Country-specific interest and inflation rates · Buildings · Not applicable | 2025 | 7.5% |
| Capital allowances · Percentage of initial investment · Baseline · Country-specific interest and inflation rates · Tangibles · Not applicable | 2025 | 17.9% |
| Capital allowances · Percentage of initial investment · Baseline · Fixed interest and inflation rates · Acquired software · Not applicable | 2025 | 23.1% |
| Capital allowances · Percentage of initial investment · Baseline · Fixed interest and inflation rates · Buildings · Not applicable | 2025 | 14.4% |
| Capital allowances · Percentage of initial investment · Baseline · Fixed interest and inflation rates · Tangibles · Not applicable | 2025 | 21.4% |
| Effective average tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Acquired software · Not applicable | 2025 | 20.2% |
| Effective average tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Composite · Not applicable | 2025 | 19.9% |
| Effective average tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Inventories · Not applicable | 2025 | 22.2% |
| Effective average tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Buildings · Not applicable | 2025 | 19.9% |
| Effective average tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Tangibles · Not applicable | 2025 | 17.3% |
| Effective average tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Acquired software · Not applicable | 2025 | 23.6% |
| Effective average tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Composite · Not applicable | 2025 | 23.3% |
| Effective average tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Inventories · Not applicable | 2025 | 24.5% |
| Effective average tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Buildings · Not applicable | 2025 | 22.9% |
| Effective average tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Tangibles · Not applicable | 2025 | 22.4% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Acquired software · Not applicable | 2025 | 19.3% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Composite · Not applicable | 2025 | 18.4% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Inventories · Not applicable | 2025 | 25.1% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Buildings · Not applicable | 2025 | 18.4% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Tangibles · Not applicable | 2025 | 10.7% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Acquired software · Not applicable | 2025 | 20.9% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Composite · Not applicable | 2025 | 18.5% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Inventories · Not applicable | 2025 | 28.8% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Buildings · Not applicable | 2025 | 14.3% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Tangibles · Not applicable | 2025 | 9.9% |
| Cost of capital · Percentage of investment · Baseline · Country-specific interest and inflation rates · Acquired software · Not applicable | 2025 | 10.8% |
| Cost of capital · Percentage of investment · Baseline · Country-specific interest and inflation rates · Composite · Not applicable | 2025 | 10.7% |
| Cost of capital · Percentage of investment · Baseline · Country-specific interest and inflation rates · Inventories · Not applicable | 2025 | 11.3% |
| Cost of capital · Percentage of investment · Baseline · Country-specific interest and inflation rates · Buildings · Not applicable | 2025 | 10.7% |
| Cost of capital · Percentage of investment · Baseline · Country-specific interest and inflation rates · Tangibles · Not applicable | 2025 | 10.0% |
| Cost of capital · Percentage of investment · Baseline · Fixed interest and inflation rates · Acquired software · Not applicable | 2025 | 3.6% |
| Cost of capital · Percentage of investment · Baseline · Fixed interest and inflation rates · Composite · Not applicable | 2025 | 3.6% |
| Cost of capital · Percentage of investment · Baseline · Fixed interest and inflation rates · Inventories · Not applicable | 2025 | 3.9% |
| Cost of capital · Percentage of investment · Baseline · Fixed interest and inflation rates · Buildings · Not applicable | 2025 | 3.4% |
| Cost of capital · Percentage of investment · Baseline · Fixed interest and inflation rates · Tangibles · Not applicable | 2025 | 3.3% |
OECD Corporate Tax Statistics, baseline scenario.
Administration self-reported metrics (ISORA)
Reported by the administration itself to the IMF/OECD/CIAT/IOTA International Survey on Revenue Administration. 1 = yes, 0 = no for policy questions.
| Indicator | Year | Value |
|---|---|---|
| Percentage of tax returns - Electronic, not prefilled - CIT | 2024 | 100 |
| Percentage of tax returns - Electronic, not prefilled - PIT | 2024 | 100 |
| Percentage of tax returns - Electronic, not prefilled - VAT | 2024 | 100 |
| Population per FTE | 2024 | 5148.890535917902 |
| Labor force per FTE | 2024 | 2515.148232611174 |
| Corporate taxpayers per FTE in LTO/P | 2024 | 133.3333333333333 |
| Active taxpayers on PIT register as percentage of Population | 2024 | 5.305390651072942 |
| Active taxpayers on PIT register as percentage of Labor Force | 2024 | 10.86094066284792 |
| Closing stock of collectable arrears as percentage of closing stock of arrears | 2024 | 53.02918289367117 |
| CIT arrears as percentage of CIT collected | 2024 | — |
| PIT arrears as percentage of PIT collected | 2024 | — |
| PAYE arrears as percentage of PIT collected | 2024 | — |
| VAT arrears as percentage of VAT collected | 2024 | — |
| Percentage of tax returns - Electronic, fully pre-filled deemed acceptance - CIT | 2021 | — |
| Percentage of tax returns - Electronic, fully pre-filled confirmation required - CIT | 2021 | — |
| Percentage of tax returns - Electronic, partially pre-filled with income and/or expense information - CIT | 2021 | — |
| Percentage of tax returns - Electronic, fully pre-filled deemed acceptance - PIT | 2021 | — |
| Percentage of tax returns - Electronic, fully pre-filled confirmation required - PIT | 2021 | — |
| Percentage of tax returns - Electronic, partially pre-filled with income and/or expense information - PIT | 2021 | — |
| Percentage of tax returns - Electronic, fully pre-filled deemed acceptance - VAT | 2021 | — |
| Percentage of tax returns - Electronic, fully pre-filled confirmation required - VAT | 2021 | — |
| Percentage of tax returns - Electronic, partially pre-filled with income and/or expense information - VAT | 2021 | — |
| Additional assessments raised through all audits and verification actions as percentage of tax collections | 2024 | — |
| Audit hit rate | 2024 | 41.84782608695652 |
| Percentage of tax returns - Electronic, not prefilled - PAYE | 2024 | 100 |
| Percentage of tax returns - Electronic, prefilled, modified by taxpayer - CIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled, not modified by taxpayer - CIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled, modified by taxpayer - PIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled not modified by taxpayer - PIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled, modified by taxpayer - PAYE | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled not modified by taxpayer - PAYE | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled, modified by taxpayer - VAT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled not modified by taxpayer - VAT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled Total - CIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled Total - PIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled Total - PAYE | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled Total - VAT | 2024 | 0 |
| Availability of specific powers in legislation / regulation to assist in collecting tax arrears | 2022 | 1 |
| Administrative sanctions for taxpayer non-disclosure - Common administrative penalty framework for non-disclosure across the major tax types | 2022 | 1 |
| Administrative sanctions for taxpayer non-disclosure - Penalties imposed generally take account of taxpayers' culpability (i.e. degree of blame) | 2022 | 1 |
| Administrative sanctions for taxpayer non-disclosure - Administration is empowered to remit / reduce penalties in appropriate circumstances | 2022 | 1 |
| Administrative sanctions for taxpayer non-disclosure - Administration is empowered to make public details of some / all taxpayers subject to administrative penalties imposed for non-disclosure | 2022 | 0 |
| On-time filing rate % - CIT | 2024 | 47.78702760975025 |
| On-time filing rate % - PIT | 2024 | 53.70848859031196 |
| On-time filing rate % - VAT | 2024 | 56.33977268728667 |
| On-time filing rate % - PAYE | 2024 | 20.90568338338564 |
| Administration pre-fills PIT returns or assessments | 2024 | 0 |
| Categories of third party information used to pre-fill PIT returns or assessments-Taxpayer personal information | 2022 | 1 |
| Administration conducts random audits | 2022 | 1 |
| E-filing mandatory - CIT | 2022 | 1 |
| E-filing mandatory - PIT | 2022 | 1 |
| E-filing mandatory - Employer Withholdings | 2022 | 0 |
| E-filing mandatory - VAT | 2022 | 1 |
| E-payment mandatory - CIT | 2022 | 0 |
| E-payment mandatory - PIT | 2022 | 0 |
| E-payment mandatory - Employer Withholdings | 2022 | 0 |
| E-payment mandatory - VAT | 2022 | 0 |
| Employers withholding taxes on behalf of salaried employees | 2024 | 1 |
| Percentage of payments received electronically-By number of payments | 2024 | 100 |
| Percentage of payments received electronically-By value of payments | 2024 | 100 |
| Cooperative compliance approach exists for -Large taxpayers | 2024 | 1 |
| Cooperative compliance approach exists for -HNWI taxpayers | 2024 | 0 |
| Cooperative compliance approach exists for -Other taxpayers | 2024 | 0 |
| Most employees that have tax deducted through direct withholding required to file a return | 2024 | 0 |
| Administration receives data from devices that register transactions | 2024 | 1 |
| Administration uses electronic compliance checks as part of returns filing process | 2024 | 0 |
| Administration has specialized audit staff for international tax issues | 2022 | 1 |
| Administration has systems for importing, storing and managing third-party data - Customs data | 2022 | 1 |
| Administration has systems for importing, storing and managing third-party data - Data from stock exchanges | 2022 | 1 |
| Administration has systems for importing, storing and managing third-party data - Data from the Social Security Agency | 2022 | 1 |
| Administration has systems for importing, storing and managing third-party data - Data from online (internet-based) vendors | 2022 | 1 |
| Administration has systems for importing, storing and managing third-party data - Data from Utilities | 2022 | 1 |
| Administration checks the quality of data reported by third parties on a systematic basis | 2022 | 1 |
| Administration has systems for importing, storing and managing third-party data - Data on property ownership and sales | 2022 | 1 |
| Administration undertakes fully automated compliance checks based on data matching/analysis | 2022 | 0 |
| Administration measures the effectiveness of any compliance interventions undertaken | 2022 | 0 |
| Administration has standards for auditor productivity | 2022 | 0 |