Panama is the southernmost country of Central America with huge jungle areas, which are home to many tropical animals and plants – some of them to be found nowhere else on the planet. Its geographic location makes Panama the regional hub for immigration and trade. The resulting cultural cocktail has forged a very dynamic and refreshing “anything goes” attitude. Panama City is the most cosmopolitan capital in Central America. Nearly half of the country’s inhabitants live there. The unemployment rate is relatively low and almost all locals are literate. Panama conjures up many vivid images of life in the tropics.
Commerce, tourism and banking are main and growth sectors in one of the largest economies in Central America. Panama’s economy is recognized as the best managed in Latin America. They have progressive economic incentives which has caused Panama to be regarded as a good place for global dwellers to retire. The government offers tax and duty discounts to foreign guests and retirees which makes the country very inviting.
Contracting in Latin America is not a simple task and has many on-costs for employers. Most in country tax laws do not recognise contractors per se, hence contract workers may need to be remunerated as employees, taxes withheld and paid to various city, state and federal governments, and reserve funds held for other entitlements until end of contract. Please contact CXC Global for professional advice on the specific legislation applying in the country in order to facilitate contractors and foreign nationals working in Panama. Forward planning is of the essence to optimize costs. Panama has entered into Double Taxation Treaties with other countries.
For foreign national contract workers, contracting in Panama, it would be wise to consult with CXC Global on the best way to structure, and how best to balance your taxation.
With our extensive experience and expertise in contractor management, and assisting organisations with their contingent workforce, CXC Global has the resources and solutions to manage the administration process associated with contracting in Panama, facilitating accounting services and administration, local tax calculations, social security registration, tax balancing and preparation of personal income tax return at the end of the tax year.