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Obligations on your jurisdictions

As businesses operate globally, navigating regulatory requirements across jurisdictions is essential. We provide a centralized resource outlining the specific obligations, compliance measures, and legal nuances that businesses must adhere to in our top jurisdictions.

Whether you’re expanding your operations or ensuring ongoing compliance, our content aims to empower you with the knowledge needed to navigate complex legal landscapes effectively.

  • Annual Financial Return
    • When do i need to present my AFR?
      • You must submit your Annual Financial Statement (AFS) within the first 9 months from the end of the entity’s fiscal year (EFY).
        • EFY 31-Dec2023 – Report deadline: 30-Sep-2024
        • EFY 30-Jun-2024 – Report deadline: 29 Mar 2025
    • What happens if I don’t send it within the stipulated time?
      • If the AFS is not submitted, the failure must be reported to the registry. This results in a fine of $300.00 for non-submission, and an additional $200 fine for each month it remains outstanding, up to a maximum of $5,000.
      • If the maximum amount is reached, the entity will be struck off.
  • Economic Substance
    • When should I submit my Economic Substance?
      • You must submit your Economic Substance (ES) within the first 6 months from the end of the entity’s fiscal year (EFY).
        • Existing entities by Jan 1, 2019 – FY end date June 29 with due date Dec 29 of each year.
        • Entities incorporated after Jan 1, 2019 – FY from inception for 12 months with due date within next 6 months.
          • Incorporation date is 1-Jan2023 – Report deadline: 30-Jun-2024.
    • What happens if I don’t submit my ES?
      • It can result in fines of up to $400,000.
  • Annual Payments
    • When should I pay the annual fee for my entity?
      • Companies incorporated from January to June (1st period):
        • Payment due date: May 31st.
      • Companies incorporated from July to December (2nd period):
        • Payment due date: Nov 30th.
    • What happens if I don’t pay the annual fees for my entities within the established timelines?
      • The non payment by this date may incur in surcharges up to 50% and possible struck off.
  • Regulatory Compliance
    • If the entity experiences changes in its structure, shareholders, or ultimate beneficiaries, it must register these changes again.
      • Director’s: must present documents 1,2,3,4
      • Shareholders, must present documents 1,2,3,4
      • Beneficial Owners, must present documents 1,2,3,4

Anual Tax

Companies incorporated in the first semester (from January 1st to June 30th of the year) must pay its Annual Maintenance Fee by June 30th. Companies registered in the second semester (from July 1st to December 31st) must pay by December 31th of the following year.

Regulatory Compliance

Reporting Terms to the RUBF (Registro Único de Beneficiario Final)

    • 15 business days following incorporation.
    • 15 business days following notification of a change by the client to the agent.

RUBF Penalties

    • US$1,000 – US$50,000 for each entity that fails to register or update its information in the RUBF.

Accounting Records

    • Panamanian entities must annually update their resident agent with accounting records’ location and responsible person details.
    • Records and supporting documents must be kept for at least 5 years from the transaction year’s end.
    • This applies to entities operating globally or holding assets inside/outside Panama.

Deadline for submitting accounting records and their location to the resident agent:

    • Accounting records for the fiscal period ending on December 31 of the previous year must be sent to the resident agent by April 30 of the following year.
    • For legal entities exempt from the annual obligation to submit their accounting records to the resident agent, upon request from the competent authority, they have 20 days to deliver them to the resident agent.

Penalties

The resident agent must report the failure to comply with the annual obligation of submitting accounting records and the annual declaration of accounting records location, along with the name and details of the contact person, to the regulatory authority. Such non-compliance could result in:

    • Fines for the legal entity ranging from US$5,000.00 to US$1,000,000.00;
    • Suspension of the legal entity’s corporate rights; and
    • Inability to register any type of document in the Public Registry and obtain certificates issued by said Registry.
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Disclaimer: esta información es informativa y no representa un compromiso. por parte de OMC GROUP, puede variar por parte del registro o nuestro departamento de cumplimiento. para mas. consultas. contáctenos aquí.

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