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An american company is opening a branch in Panama and wants me to run it for them there. I am not US citizen nor Panama citizen. Since the company is based in the US, do I pay US taxes, Panama taxes or my country's taxes?

2007-06-03 05:10:49 · 6 answers · asked by nani 1 in Business & Finance Taxes Other - Taxes

I am a colombian citizen wanting to work in Panama for an american company. What income taxes I am gonna pay?

2007-06-03 14:36:02 · update #1

6 answers

Personal income tax in Panama is based on a sliding scale, ranging from a minimum of 7% after the first $9,000, to a maximum rate of 27%. For temporary residents, the tax is only applied to Panamanian-sourced income. Without knowing your home country it is difficult to know what they may do.

2007-06-03 12:54:58 · answer #1 · answered by ? 6 · 0 0

You're only liable for US income taxes if you're a US Resident Alien, or a US Citizen. If you only work for a US corporation (and be sure that it is a US corporation doing the hiring, not their offshore subsidiary) you don't have to pay income tax in the US.

However if you work in Panama, and earn more than 700.00 USD a month you will have to pay income tax in Panama. The taxes will be deducted from your check (this is the usual practice in Panama), if not you only have to pay social security and a public school tax (called seguro educativo).

2007-06-06 06:07:33 · answer #2 · answered by wcruzq 5 · 0 0

You would have obligation for taxes other than to Panama and your home country possibly. For more on Panama Taxes gop here:
http://www.panamalaw.org/panama_taxes.html

2007-06-05 08:24:55 · answer #3 · answered by panama7777777 2 · 0 0

You won't pay US taxes. Any other taxes would be up to Panama and your home country. Consult with the tax authorities in Panama and at home.

2007-06-03 05:29:05 · answer #4 · answered by Bostonian In MO 7 · 1 0

you're basically liable for US earnings taxes once you're a US Resident Alien, or a US Citizen. in case you basically artwork for a US business enterprise (and be effective that that's a US business enterprise doing the hiring, no longer their offshore subsidiary) you do no longer would desire to pay earnings tax interior the US. although in case you artwork in Panama, and earn greater desirable than seven-hundred.00 USD a month you will would desire to pay earnings tax in Panama. The taxes would be deducted out of your examine (this is the regular prepare in Panama), if no longer you basically would desire to pay social protection and a public college tax (called seguro educativo).

2016-10-09 09:10:51 · answer #5 · answered by ? 4 · 0 0

You only pay taxes if you are a US resident..Tax money is used by the goverment to pay different community needs such as education, community commons (parks, libraries...) and medical among other things..you do not use any of these benefits so why should you pay taxes...

2007-06-03 15:33:20 · answer #6 · answered by Nicole E 4 · 0 1

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