Jurisdictional Updates
Quick Guide: Panama Accounting Records Requirements
If your company, LLC, or private interest foundation is incorporated in Panama and isn’t conducting business inside Panama—or only holds assets here or abroad—you’ll need to submit your accounting records to your Resident Agent by April 30 of every year.
What you submit depends on your entity type, which is determined mainly by the nationality of your beneficial owners:
- Panamanian Legal Entities:
- These are entities whose beneficial owners are all Panamanian citizens.
- If you don’t generate taxable income in Panama, a simple Sworn Affidavit will suffice.
- If you earn income outside Panama, you’ll need to provide a Financial Statement or Financial Situation Report.
- Foreign Legal Entities:
- These are entities with at least one foreign beneficial owner.
- A Financial Statement or Financial Situation Report is required.
- Non-Operating Entities:
- Entities with no business activity or assets, regardless of beneficial owners’ nationality.
- You’ll need a Certification of No-Operation, confirming no business or assets.
Who can sign these documents?
A director, member of the foundation council, beneficial owner, or authorized representative.
Your Resident Agent will file a declaration with Panamanian authorities by June 15 of the current year.
Please note: Failure to file on time can lead to significant fines—from $5,000 up to $1,000,000 USD—and suspension of your company’s rights. Resident Agents are also required to report non-compliance and may resign if obligations are not met.
Kindly find below our general accounting records form:
Accounting Records and Supporting Documentation Custody Form (PDF)
Got questions or need assistance? Feel free to reach out at quijano@quijano.com — we’re here to assist!
For more details, please see below our past memos and the applicable legislation and regulations here: