Companies and businesses
Annual franchise tax and regularization of companies in Panama
If a company has accumulated outstanding obligations, it is advisable to understand both its tax account and its status in the Public Registry. At Quirós & Quirós, we review that background and organize the necessary procedures to determine what can be regularized and how to proceed.
The management team directly coordinates the receipt of documents and inquiries with our legal team. You can consult us even if you do not know the balance or have not kept all the receipts. We start by identifying the legal entity, its background and the need you wish to address.
Speak with a lawyer →How we proceed
Your consultation, step by step
We examine the background
We identify the legal entity and review its tax account alongside the Public Registry information. We compare the annual charges and available receipts to understand the obligations and any entry that may require attention.
We determine the procedure
The legal team assesses the entity's situation and the available route to regularize it. We identify representation documents, necessary steps and the involvement required of the legal representative and resident agent.
We verify the steps taken
When regularization is appropriate, we coordinate the documents, payments and procedures included in the service. We follow up on the relevant decisions or entries to verify the outcome, while the management team centralizes communication and outstanding matters.
For your consultation, have these ready
- Name and registration details of the company or foundation you wish to consult about.
- Account statements and available receipts for the legal entity's annual franchise tax payments.
- Documents or communications concerning entries, suspension or procedures undertaken by the representative or resident agent.
Questions on this topic
See the questions on Corporate services and resident agent and tell us what you need to resolve.
View questions on this topicRequest a review of my company
If you are considering creating an entity, learn about our service for incorporating companies and foundations in Panama and planning its maintenance obligations.
You can also call us at +507 6200-6863.
Tell us the name of the company or foundation and what you need to resolve. We will coordinate an initial review to explain your situation and the service we can offer you.
Consult a lawyerA review of the company from three angles
Tax account
We compare outstanding annual charges with the available receipts.
Public Registry
We review registration and whether any entries require attention.
Representation
We identify the involvement of the legal representative and resident agent.
This background allows us to assess the available route and the procedures needed to regularize the entity.
Review of outstanding obligations
We examine the annual charges appearing on the account, available receipts and registration information. The DGI sets deadlines related to the half-year in which companies are registered. Before quoting an amount, we verify the items and periods applicable to your case.
If payments and records do not match, we gather the supporting documents to assess the correction and clarify the involvement of the legal representative and resident agent.
If corporate rights are suspended
Failure to pay the annual franchise tax for three consecutive years may lead to suspension through actions by the DGI and the Public Registry. We review whether there is an entry, its cause and the relevant date before proposing a reactivation application.
The law provides conditions and deadlines for reactivation, and subsequent consequences if the procedure is not completed. We therefore do not promise that any suspended entity can be reinstated with a payment. We assess the available route, representation requirements and the legal entity's current status.
Management and verification of the outcome
Regularization may require a decision and the removal of the entry. We verify those steps and the payments made to confirm the procedure's outcome.
The review distinguishes the regimes for companies and foundations. The estimate identifies the professional procedures and disbursements applicable to the entity.