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The first 90 days in Panama: from the pacto social to the first monthly filings

Last verified: 2026-10-29 · Status: Stable

Setting up in Panama is a short sequence: sign and authenticate the pacto social, protocolize and register it, let the resident agent record the beneficial owners within 15 business days, file the Aviso de Operación, then register as employer and for ITBMS. The legal deadlines that start running in the first three months are the 15 business day beneficial ownership window, monthly ITBMS returns within 15 calendar days of month end and the 10 day deposit of tax withheld on payments abroad. Costs fixed by law are the B/.300 tasa única at registration and the Aviso de Operación tax of 2 percent of capital; notary, registry and professional fees are private and vary.

Panama's currency, the balboa (B/.), is at par with the US dollar, which circulates as legal tender; the Superintendencia de Bancos states that the official currency is the balboa, whose value is on a par with the United States dollar (checked 29 October 2026). USD figures therefore equal the balboa figures.

Key facts

Deadline for the resident agent to record beneficial owners	15 business daysLey 129 de 2020 art. 11 (Ley 254 de 2021), as of 2026-10-29 · in force
Deadline for the entity to report beneficial owner changes	15 business daysLey 129 de 2020 art. 12 (Ley 254 de 2021), as of 2026-10-29 · in force
ITBMS monthly return deadline	15 calendar days after month end daysCódigo Fiscal art. 1057-V parágrafo 10, as of 2026-10-29 · in force
Deposit of tax withheld on payments abroad	10 daysCódigo Fiscal art. 733 literal k, as of 2026-10-29 · in force
Aviso de Operación annual tax	2 %Código Fiscal art. 1004, as of 2026-10-29 · in force
Aviso de Operación annual tax maximum	60000 PABCódigo Fiscal art. 1004, as of 2026-10-29 · in force
Tasa única anual for companies	300 PABCódigo Fiscal art. 318-A, as of 2026-10-29 · in force

The rule

1. The pacto social may be signed in or outside Panama and in any language (art. 3), by public deed or another document attested by a notary or authorized official (art. 4). If not in a public deed it must be protocolized at a Panamanian notary; a document signed abroad must first be authenticated by a Panamanian consul or, failing one, by the consul of a friendly nation, and a text not in Spanish is protocolized with an authorized translation (art. 5). The deed is then presented for registration, and the company has effect against third parties only from registration (art. 6).
Cost to do it: Notary, translation and registry fees are not fixed by Ley 32; the only statutory charge at registration is the B/.300 (US$300) tasa única.Ley 32 de 1927, sobre sociedades anónimas, arts. 3 to 6, 1927-02-26 official text · verified 2026-10-29

2. The first tasa única anual of B/.300 (B/.350 for a private interest foundation) is paid at registration together with the registry fees, as if it formed part of them.
Cost to do it: B/.300 (US$300) per company at registration.Código Fiscal art. 318-A as worded by Ley 52 de 2016 art. 9, art. 318-A second paragraph, 2016-10-28 official text · verified 2026-10-29

3. The resident agent completes the registration of the entity and its beneficial owners in the single system within 15 business days of formation or registration; later changes must be reported by the entity within 15 business days and updated by the agent within five business days.Ley 129 de 2020 arts. 11 and 12 as worded by Ley 254 de 2021 arts. 34 and 35, arts. 11 and 12, 2021-11-11 official text · verified 2026-10-29

4. Before any commercial or industrial activity starts, the business files the Aviso de Operación, a mandatory sworn declaration made through the PANAMAEMPRENDE system, which becomes a public document once confirmed by the system.Ley 5 de 2007 art. 3 as worded by Ley 2 de 2013 art. 2, art. 3, 2013-02-06 official text · verified 2026-10-29

5. The Aviso de Operación tax is 2 percent of capital a year, minimum B/.100 and maximum B/.60,000, with an exemption for invested capital below B/.10,000.
Cost to do it: B/.100 to B/.60,000 (US$100 to US$60,000) a year.
Example: B/.25,000 of capital: B/.500 a year. B/.8,000 of capital: exempt. / US$500 a year on US$25,000; nothing on US$8,000.Código Fiscal art. 1004 as worded by Ley 412 de 2023 art. 19, art. 1004, 2023-11-21 official text · verified 2026-10-29

6. The ITBMS is settled and paid monthly; the return is filed within 15 calendar days after the month ends. Producers, traders and service providers with annual gross income below B/.36,000 are not ITBMS taxpayers.
Example: Sales of B/.40,000 in March with B/.15,000 of taxable purchases: output tax B/.2,800, input tax B/.1,050, B/.1,750 due by 15 April. / US$1,750 due by 15 April.Código Fiscal art. 1057-V parágrafos 9 and 10 as worded by Ley 8 de 2010 arts. 84 and 86, art. 1057-V, 2010-03-15 official text · verified 2026-10-29

7. Anyone who remits Panamanian source income other than dividends to a non resident must withhold, when remitting, the general rate of art. 699 or 700 on 50 percent of the amount and deliver the withholding within ten days after withholding, to the extent the payment bears on Panamanian income and was treated as a deductible expense.
Example: A B/.20,000 consulting fee paid to the foreign parent: 25 percent on B/.10,000, B/.2,500 withheld and deposited within ten days. / US$2,500 withheld on US$20,000.Código Fiscal art. 733 literal k as worded by Ley 27 de 2015 art. 4, art. 733 literal k, 2015-05-04 official text · verified 2026-10-29

8. Employees contribute 9.75 percent of salary and employers 13.25 percent until 28 February 2027 to the Caja de Seguro Social, which is responsible for collecting social security contributions.Ley 51 de 2005 art. 101 as worded by Ley 462 de 2025 art. 84; Código de Procedimiento Tributario art. 5, Ley 51 art. 101; CPT art. 5, 2025-03-18 official text · verified 2026-10-29

9. Minimum wages are fixed nationwide by executive decree of the Ministerio de Trabajo y Desarrollo Laboral; the current rates are those of Decreto Ejecutivo 13 de 31 de diciembre de 2025, published in Gaceta Oficial 30438, which sets new minimum wage rates throughout the national territory.Decreto Ejecutivo 13 de 31 de diciembre de 2025 (MITRADEL), Whole decree, 2025-12-31 official text · verified 2026-10-29

Step	Who	Legal deadline or trigger	Statutory cost	Norm
Sign the pacto social; consular authentication if signed abroad; protocolize with translation	Founders, Panamanian consul, notary	Before registration	Private fees	Ley 32 arts. 3 to 5
Register at the Registro Público and pay the first tasa única	Resident agent	Effect against third parties only from registration	B/.300	Ley 32 art. 6; Código Fiscal art. 318-A
Record the beneficial owners	Resident agent	15 business days from formation	None	Ley 129 art. 11
File the Aviso de Operación in PANAMAEMPRENDE	Company	Before starting activity	Annual tax of 2 percent of capital	Ley 5 de 2007 art. 3; Código Fiscal art. 1004
Register as employer and pay contributions	Company	Before the first payroll	Employer 13.25 percent of salaries	Ley 51 art. 101
File monthly ITBMS	Company with B/.36,000 or more of annual gross income	15 calendar days after each month	7 percent on taxable sales less input tax	Código Fiscal art. 1057-V
Deposit withholding on payments abroad	Payer	10 days after withholding	25 percent on 50 percent of the payment for a company recipient	Código Fiscal art. 733 literal k

First 90 days checklist with the legal deadline for each step

Worked example

Day 1 to 10: a Colombian parent signs the pacto social in Bogotá before a notary and has it authenticated by the Panamanian consulate; a Panamanian law firm acting as resident agent protocolizes it with an official translation.
Day 10 to 20: the deed is registered and B/.300 (US$300) of tasa única is paid; within 15 business days the agent records the parent's ultimate individual owners.
Day 20 to 30: the company obtains its taxpayer registration and files the Aviso de Operación with capital of B/.25,000, so it owes B/.500 (US$500) of Aviso tax a year.
Day 30 to 90: it hires three employees, pays employer contributions at 13.25 percent, starts monthly ITBMS returns by the 15th, and withholds B/.2,500 on a B/.20,000 management fee to the parent, depositing it within ten days.

Step by step

Gather founder identity documents and decide directors (at least three) and officers.
Sign the pacto social; if abroad, obtain authentication by a Panamanian consul.
Protocolize with a Panamanian notary, with an authorized translation if needed, and register at the Registro Público.
Pay the B/.300 tasa única with the registry fees.
Confirm the resident agent recorded the beneficial owners within 15 business days.
Obtain the taxpayer number and file the Aviso de Operación in PANAMAEMPRENDE.
Open a bank account; banks are obligated subjects under Ley 23 de 2015 and run their own due diligence.
Register with the Caja de Seguro Social before hiring and check the applicable minimum wage in Decreto Ejecutivo 13 de 2025.
Set up monthly ITBMS filing and the withholding process for payments abroad.

Common traps

Starting to trade before the Aviso de Operación is filed breaches Ley 5 de 2007.
The 15 business day beneficial ownership window runs from formation, not from the first business activity.
Withholding on payments abroad must be deposited within ten days, not with the annual return.
Capital stated in the Aviso drives the annual Aviso tax; overstated capital costs 2 percent a year up to B/.60,000.

Sources

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