Offshore Companies of Panama, holding real estate and liabilities must present their accounting in compliance with Law 624
Law 624 of 2021 modifies the accounting system for Panama’s offshore companies and their real estate holdings.
Despite the fact that offshore companies of Panama are the ones that DON’T carry out operations in Panama the new Law 624 now requires them to present their accounting. This law has taken both investors and Resident Agents, who receive a workload and additional expenses, by surprise. The approval of the projected Law 624, of 2021, by the National Assembly of Panama, will increase control over the accounting of offshore companies. This is another step towards gratifying the demands of the International Financial Task Force (IFTF).
Two years ago, the IFTF included Panama on the “grey” list of countries with deficiencies in controlling money-laundering. This international organization feels that the country still hasn’t complied with the pact. To put greater pressure, the IFTF threatened to put Panama to the “black” list, which only contains Iran and North Korea.
Law 624 is included among the legal steps adopted by the National Assembly. It introduces important changes to various legislations. Said legislations are linked to international tax transparency, the prevention of money-laundering and Financing the Proliferation of mass Destruction weapons.
One of the modified laws is Law n. 52 0f 2016, related to accounting registers of companies in Panama
What will change in the accounting of companies in Panama?
For those companies that operate and pay taxes in Panama, there are no big changes, aside from having to deliver an annual balance to the Resident Agent. Among the changes introduced to Law 52 is that all legal persons who do not carry out operations within Panama, as well as those who only hold assets, will be required to keep accounting records. Plus, they will have to keep backup documentation.
Law 624 of 2021 basically modifies the obligations of those companies that DON’T carry out operations in Panama. Real estate Holdings and dormant companies. The role of Resident Agents has also been updated.
These accounting records, as well as the backup documents, will have to be kept for a period of five years minimum. To establish the date, you will have to keep in account the last day of the calendar year in which the transactions that appear in these accounting records were carried out.
Legal persons will have to offer information that shows the value of the assets they maintain, as well as the income they obtain from said assets and also liabilities linked to these assets. Meanwhile, legal persons who do business outside of Panama will have to share a logbook and a ledger.
All of this documentation will have to be guarded by the Resident Agent in Panama, in his office or in some other site, in or out of the country. The only ones exempt from complying with this demand are the legal persons who are listed in a Panamanian or international stock market, as well as companies owned by international, multilateral or by a State.
Owners and charterers of embarkations enrolled in Panama’s international service of the merchant marines are exempt.
Don’t despair, the CPA Data Panama accounting program will resolve everything!
Downloadable app features:
- One payment via PayPal | Bitcoin | USDT | ACH | SWIFT | IBAN
- Valid license to maintain the accounting of 3 companies
- Multilingual (Spanish, English, Italian)
- You can upload files of invoices, receipts, notes
- You can print the initial, monthly and annual balance sheets in PDF
- Your accountant can add their logo and name to the opinion
How to easily keep your accounting for Law 624
In operational terms, to get up to date with Law 624, the majority of offshore companies will be required to plan a budget for creating an accounting structure that is capable of creating an informational output as demanded by the law.
We here, of CPA Data Panama have already created a very useful program to minimize the necessary time and investment amount.
In order to save and earn efficiently, the first thing you have to do is to have a good accounting program, made especially for the offshore companies of Panama, meaning the companies that don’t operate in the country, the real estate holdings and companies that have assets.
The program is easy to use, it lets you choose the language from Spanish, English and Italian. The accounting is organized according to the standards required by the Republic of Panama. The program has user-friendly functions; among them are ‘save copies’ and ‘printing balances’ for audits by a CPA, meaning a ‘Certified Public Accountant’.
Adopting the CPA Data Panama program allows you to save many hours of accounting work, since it diminishes the number of errors and the loss of time for correcting them.
Further, the use of the CPA Data Panama program is aback up tool for the Resident Agent who has the task of representing the offshore companies before Panama’s governmental authorities.
Without considering that manual accounting could seem very inadequate for an offshore company of Panama dedicated to international business.
Download now the CPA Data Panama program to comply with Law 624
If you need a consultation with certified Public Accountant, reserve your call now