The income tax rate for corporations in Panama is 25%. Law No. 8 of March 15, 2010, eliminates the Alternative Income Tax Calculation (CAIR) and replaces it with another modality of presumed income taxation, obliging all legal entities that earn income in excess of B/.1,500,000 to determine as the taxable base of said tax, the higher of: (a) the taxable net income calculated by the ordinary method established in the Fiscal Code, and (b) the taxable net income resulting from applying 4.67% to the total taxable income.
