Panama's income tax law is based on the principle of territoriality. Consequently, income tax is levied only upon net income derived from operations carried out within the territorial boundaries of the Republic of Panama. This basic principle has remained virtually unchanged since the foundation of the Republic.

Panama trusts are tax exempt, except in the case the trust itself carries out an activity that generates income in Panama. There is no estate tax, inheritance tax, succession tax, gift tax, duty, levy or other charge payable by beneficiaries in respect of any distribution to them by the trustee of any trust;

There is no taxation on interest earned on bank deposits.

Panama has signed over _____ DTA’s and TIEA's. in order to meet international standards.