Panama Offshore Jurisdiction
The Republic of Panama is the southernmost country of Central America. It is bordered by Costa Rica to the north-west, Colombia to the south-east, the Caribbean Sea to the north and the Pacific Ocean to the south. Panama is one of the biggest financial, merchant and transport centre in Latin America.
Panamanian law is based on the Spanish Civil Law. The official language is Spanish, but English is widely spoken too. The official currency is Balboa, but US Dollar is uses too.
Panama is a free country. It is independent and sovereign state. Those facts make a big difference when your local taxation office begins to investigate the business you are running.
Panama has no information exchange agreements with other countries. That means that an official letter from the tax office in your country to any of Panamanian banks or government agencies, will fail to give the result. In most of cases, such a letter will remain unanswered. That is what is meant with sovereign country. Panama is independent and unlimited by any other country. It has its own government and is not subject to another power.
Panama Internet Gaming Licensing
The gaming industry in Panama is controlled by the Panama Gaming Control Board (Junta de Control de Juegos), established in 1947. Panama's gaming law demands that gaming establishments turn 80% of their profits over to the government. The country’s casinos were originally owned by the state but were privatized in1997. Most of Panama’s casinos are the main attraction in large-scale casino resorts. Panama also licenses bingo halls and gaming machines outside of casino.
Panama adopted regulations governing the licensing of electronic games of chance and wagering activities in late 2002. The regulations allow master licenses to be granted that are valid for up to seven years upon payment of a license fee of USD $40,000. There is also an annual license fee of USD $20,000. Master license holders may grant sub-licenses, which are subject to the annual fee. Applicants must pay all investigation costs incurred in the processing of the application. Panamanian taxation policies allow Internet gaming companies to operate essentially tax-free when accepting foreign wagers.
All Internet Gaming Companies within or hosted in Panama have to be registered under the online gaming act of 12 November 2002. The regulation allows for online international wagering.
The telecommunications system can be provided through the most state of the art fibre-optic system in the region. Panama also boasts one of the largest banking and offshore jurisdictions in the world. The official currency is the US dollar.
Internet gaming companies domiciled in Panama enjoy complete tax exemptions. Customs duty concessions are given for imports needed to carry on Internet gaming. As long as the income made from Internet operations is to jurisdictions outside of Panama, there is no income tax, withholding tax, sales tax or VAT tax. Offshore companies, such as on-line gaming companies are not subject to foreign exchange control. There is also a new call center incentive and training program that boast numerous qualified bilingual workers. Finally, under much limelight, there is a proposed law in the legislative assembly to make English the second official language, thus eliminating the need for translations for official documents and procedures.
Procedure of licensing and terms
The process of the application for the license usually takes from one to two months after providing all required documents.
A licensee should:
- ensure that all Applicants have no criminal record and suitable references
- designate qualified Applicants as to operating under the master license
- ensure that all software and specific games of chance conform to the strict regulations of the Panama Internet Gaming License
- collect all fees
- monitor game payouts and to make certain they are within acceptable worldwide standards
- make certain that a complete record of all transactions are available for inspection by designated officials of the Government or the License holder at any time
- comply with national and international money laundering regulations
You must also consider your development needs, software, billing, and dedicated servers and travel if necessary.
Legal Law Practices Contacts
1. Ballard & Ballard
Main Office
GlobalBank Tower, 50th street, 23rd floor,
P.O. Box 0832-1358
Panama
Panama
Phone: +507 2 3405100
Fax: +507 2 3405101
Website: www.ballardlaw.net
Main Contact: info@ballardlaw.net
2. CS&P Fiduciaire - Carlo Scevola & Partners
The Century Tower, Piso 4, Avenida Ricardo J. Alfaro
Panama City
Panama
Phone: +41 225 752948
Website: www.carloscevola.com
Main Contact: info@carloscevola.com
3. Cambra La Duke & Co.
50th Street, Global Plaza Tower, 19th Floor, Suite H
Panama 0834-1987
Panama
Phone: +1 507 263 1042 / (800) 961-9655
Fax: +507 263 2475
Website: www.cambraladuke.com
Main Contact: info@cambraladuke.com
4. Molina & Co - Panama Attorneys
Main Office
Global Bank Tower, 50th Street, 11th Floor
P.O. Box 87-3375 Panama 7
Panama
Panama
Phone: +507 3403420
Fax: +507 3403422
Website: www.panamaoffshorecenter.com
Main Contact: rjm@moliasoc.com
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