One of the most frustrating months of the year for most Americans is April. The reason
for this is that April is tax season and Americans have to file their tax returns. The
countrys infrastructure along with its public service and defense needs are met by using
this tax money. The people who are paying bulk of this tax are the business people. For
these people there is a legal way of reducing this tax burden called Panama corporations.
Many business people have doubts about this. The most common fear among them
is Are Panama corporations legal?. It is but one has to be careful.
The corporations are set up by companies who have their bases in the US. These
companies have the right to sell their goods and services and the duty to pay taxes in
the US, but the amount of tax they pay is less. They may not sell goods and services in
Panama, but it gives them a platform to sell it to the world.
The economy of Panama is highly dependent on trade; therefore they do not want to scare
away potential businesses by overtaxing. In fact the more Panama corporations are there,
the higher the amount of tax the government will have. This tax can be used to better the
conditions of the people living in Panama.
In Panama one of the constitutional rights is the right to privacy. In fact the only time
that the Panamanian government will ever step in is when there is proof that one of
the Panama corporations is doing illegal activities like drug trafficking and money
laundering. Otherwise you will be pretty much left alone. Starting a Panama corporation
may save your assets from not only your ex-business partners and ex-spouses, but also
from over-zealous attorneys as well. After all who wants to part with their hard earned