Panama’s economy is one of the most stable in America. The main economic activities are financial, tourism and logistics, which represent 75% of the GDP (Gross Domestic Product).

The GDP has enjoyed sustained growth for more than twenty years in a row (1989). The country is classified in the category of investment grade by these credit rating companies: Standard and Poor’s, Moody’s and Fitch Ratings.

Taxes in Panama

According to Act 8 of March 15, 2010, which amended the Fiscal Code, the air, sea and land transportation companies, as well as passengers, shall pay ITBMS tax. In Panama, 7% of ITBMS (normally called Value added tax in other countries) is charged on public entertainment, events, seminars, conferences, lectures and artistic, professional and sport presentations in general that are not free and whose annual incomes are over $36,000.

The importation and sale of alcoholic beverages, as well as hotel or lodging services, jewelry and weapons will pay 10 % of ITBMS. Tobacco derivatives (such as cigarettes, cigars, and snuff) will pay 15% of ITBMS. Cable TV, microwave, satellite and mobile phones will pay 5% of ITMBS.