I have received the following, mind easing clarification from a well known and well respected attorney in Panama City.
It explains the current status and the fact that many accountants are unaware. The operative word in the law that makes the distinction is one i questioned, contribuyentes.
Dear Lee,
The fundamental problems is that corporations and foundations which only hold real estate with no income do NOT have an obligation to file a tax return. You touch on the precise concept: contribuyentes (taxpayers). Only entities that receive taxable income are taxpayers and thus obligated to file tax returns.
Many accountants have advised otherwise and therefore there are many corporations/foundations with no taxable income, filing tax returns with just “No operations”.
The Tax Department has now posted clarification on their website that corporations or foundations with “No operations” do not need to file the monthly return. Much before that they had already clarified that those entities that have never filed a tax return do not need to file the monthly return either.
I hope this helps.
Yours faithfully,
Rainelda Mata-Kelly
LAW OFFICES RAINELDA MATA-KELLY
Street address:
Suite 406-407, Tower B
Torres de las Americas
Punta Pacifica, City of Panama
Mailing address:
P.O. Box 0818-00534
Panama City, Republic of Panama
Tel (+507) 216-9299
Fax (+507) 216-9298
When calling from the USA or Canada, please dial:
Tel (011 507) 216-9299
Fax (011 507) 216-9298
Its not that the accountants are “unaware.” Its that they are trying to take us gringos for an expensive ride because WE are unaware (and therefore “fair game”). It must be that dollar sign on our back with the red circle around it.
Fair is Fair……You feel like they are trying to take you all, and they know you all took advantage of them.
Barbara, this the second nonsensical “fair is fair” comment you have posted here.
Perhaps you can enlighten us as to who “you” and “they” and “you all” is.
Your comment, as posted, makes no sense at all.
Since the property I hold in a Corporation has lost value in the last few years, I’m looking forward to a refund check from the Government manana.
The I.R.S. is looking for every penny they can get from U.S. citizens living in the states and abroad.Be aware of the risk you take for attempting tax evasion
I don’t waste my time explaining or trying to enlighten anymore….because the people we tried to enlighten throughout the years didn’t listen anyway. So its better for everyone to learn from experience. My comment might seem nonsensical to you, but there are alot of people that understand exactly what I mean.
Barbara,
I understand exactly what you mean. You try to lead people in the right direction and they think you are out to get something from it. Just relax and don’t worry because you will hear alot of “I told you so”
Dear Bob,
No one is even discussing tax evasion. I do agree if you came to Panama to avoid a US tax liability you better find a deep hole and never come out because they will eventually find your assets.
Dear Barbara,
No one is going to hear you either, because your views are based upon your long term experience both here and in the US. Both venues have changed, currently you are more comfortable in the US. I and others are more comfortable here. We never knew your Boquete, Boquete changes daily.
Lee, thats why I say “learn from experience”………and Bob,It’s nice that some people understand what I try to say….Thank you