Foundation Advantages
Significant advantages are offered by the Panama Private Interest Foundation. The following are some highlights:
• Total exemption of taxes in the Republic of Panama, including without limitation, income tax, wealth tax, real estate tax, inheritance tax, sales and transfer tax and others.
• Total confidentiality and anonymity. The law on Private Interest Foundations state that the Foundation Council, the protector and the resident agent and any persons or institutions which by reason of their function obtain information related to the activities, transactions or operations of the Private Interest Foundation shall at all times be obligated to maintain strict secrecy, even after its liquidation. Violation of this rule shall be fined with imprisonment of up to six months and penalties of up to US$50,000 without limiting the respective civil liabilities arising therefrom.
• There is no legal requirement to disclose the name of the real founder, beneficiary or protector.
• There is no requirement to file any annual tax return or financial statement.
• There is no obligation to hold an annual meeting of the foundation council, the founders or the protectors.
• Fast incorporation.
• Simple administration and management procedures.
• Reasonable incorporation and maintenance fees.
• There is no legal requirement of maximum authorized capital.
• The payment of the foundation capital is not required for the incorporation of the foundation and there is no maximum time or deadline to make such contribution.
• There is no limitation in respect of perpetuities, accumulation of capitals and other restrictions which are required in similar structures in other jurisdictions, such as the anglosaxon or common law trust.
• The private interest foundation can engage in any business or civil transactions (only in exceptional cases) in part of the world and in any currency.
• The founders, members of the foundation council, beneficiaries and protectors may be individuals or corporations of any nationality.
• The members of the foundation council need not be founders.
• The founders, the protectors and the members of the foundation council may be beneficiaries of the foundation.
• There is no limitation on the maximum permitted number of founders, members of the foundation council, beneficiaries or protectors.
• The founders and the members of the foundation council may hold their meetings in any country and may be represented by proxy.
• The foundation books and accounting books may be maintained in Panama or abroad.
• The foundation charter can be signed by an attorney in fact or by a trustee without the need to disclose the name of the founder.
• Private Interest Foundations incorporated in other countries can be redomiciled or continue existing as Panama Private Interest Foundations and viceversa following a simple continuation procedure.
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