Panama Private Foundation Part 10 – Panama Private Interest Foundation Annual Renewal Notice

1. Notice of Annual Fees

Kaizen Corporate Services Limited
Rooms 2101-05, Futura Plaza,
111 How Ming Street,
Kwun Tong, Hong Kong

Dear Sir or Madam:

We hope this email finds you well. We wish to communicate to all our clients about the annual renewal fees of Panamanian entities (corporations & foundations). The information pertaining to annual resident agent fees and the government corporate franchise tax was sent to you in the package of corporate documents you originally received when you purchased the entity(s). The purpose of this notice is to remind you of this topic.

After reading this notice, you will need to contact us regarding your entity(s) balance to bring them to good standing with our law firm and with the government of Panama. For this information, please contact us by email at: enquiries@bycpa.com.

2. Panama Private Foundation Annual Renewal Fees

The Annual Renewal Fees are composed of three (3) elements:

• Annual Law Firm’s Resident Agent Fee (Mandatory)
• Annual Government Corporate Franchise Taxes Fee (Mandatory)
• Annual Nominee Foundation Council Fee (Optional)

Below you will find the detail of each of these elements.

(1) Annual Law Firm’s Resident Agent Fees

This shall serve as a guide to clarify the annual resident agent fees for your corporation and/or foundation. The law of Professional Legal Services of Panama authorizes Panamanian law firms to charge annual fees for resident agent, nominee directors, registered office and corporate administrative fees.

To keep a corporation or foundation in good standing with our law firm, each entity must pay an annual fee of US1,000 per year, which is broken down as follows: USD400 for resident agent/office and USD600 for nominee directors/Council Members.

Our associated law firm’s annual fees are due each year, starting one year from the date of incorporation. Payment of our law firm’s annual fees may be paid by any of the methods mentioned below.

(2) Annual Corporate Franchise Tax

This shall serve as a guide to clarify the annual government corporate franchise taxes for your corporation and/or foundation.

To keep a corporation or foundation in good standing with the Panamanian Government, each entity must pay a flat annual tax of USD300 to the Panamanian Government (Public Registry) in concept of corporate franchise taxes since the date that the entity was incorporated.

If the corporate franchise taxes are not paid, the Public Registry will not permit any changes to the entity at the Public Registry, and will not allow you to obtain any Certificates of Incorporation for the entity, which are generally required by financial institutions from time to time, as part of their due diligence procedures/policies.

(3) Annual Nominee Foundation Council Members Fee

A Panama Private Foundation requires a Foundation Council comprising three individual members or one Corporate member. If so requested, we will provide three individuals acting as nominee Council Members and our annual fee for this service is USD600 per annum.

According to Panamanian Law, the government corporate franchise tax payment deadlines are based on the Incorporation date, as follows;

Incorporation Date Tax Payment Deadline:

1 January to 30 June 30 June
1 July to 31 December 31 December

Late Payment Penalty:

If the flat annual government corporate franchise tax (“tasa unica”) is not paid on or before the due dates mentioned above, the entity will be charged a late penalty of USD50.

Second Late Payment Penalty:

If the flat annual corporate franchise tax (“tasa unica”) is not paid after the second “deadline” period, the entity will be charged a second late penalty of USD300. For every additional “deadline” period missed thereafter, a USD300 late fee will be incurred.

3. Payment Methods

We accept cash, TT and Hong Kong Dollar check and credit card (by Paypal). Please click here for payment methods.

After sending the wire transfer, please confirm our staff by email at enquiries@bycpa.com with the following information:

1. Date wire was executed.
2. Exact amount sent & name of account sent from.
3. Name/address of bank where funds were wired from.
4. If you have a wire confirmation sheet from your bank, please fax it to us at +852 2341 1414