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They are not subject to any form of taxation
in the Republic of Panama except for a US$300 Annual Franchise
Tax. Consequently, they are exempted from income tax, estate
tax, real estate tax, inheritance tax and sales tax.
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The Private Foundation law mandate that members
of the Foundation council (who are also known as “Council
Member”), Protectors, supervisory bodies or any persons
or institutions who on account of their duties become aware
of information relating to the activities, transactions or operations
of a Private Foundation are required to maintain strict confidentiality,
even after its termination. Failure to do so may result in imprisonment
of up to six months and a fine of up to US$50, 000 not precluding
the corresponding civil liability.
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The Law does not require the names of the
ultimate Founders, Beneficiaries or Protectors to be revealed.
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There is no requirement to file annual meeting
of the Foundation Council, Founders or supervisory bodies.
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The contributions to the Foundation Assets
do not need to be deposited as a requirement for the constitution
of the Foundation, and there is no maximum period of time for
the endowment to be made.
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There is no limitation whatsoever as to perpetuity.
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The Foundation may carry out any kind of
civil or commercial transactions, anywhere in the world and
in any currency.
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Founders, members of the Foundation Council,
Beneficiaries and Protectors may be natural persons or corporations
of any nationality domiciled anywhere in the world.
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Founders need not be a Member of the Foundation
Council
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Founders and members of the Foundation Council
may be Beneficiaries of the Foundation
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There are no limitations as to the maximum
number of Founders, Council Members or Beneficiaries.
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Founders and Foundation council Members may
hold their meetings anywhere in the world and may be represented
by proxy.
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Foundation books and accounting books (if
any) may be kept anywhere in the world.
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The Foundation Charter may be subscribed
by the client or by declaration.
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Foundations from other jurisdictions may
change their domicile to Panama and continue as a Panamanian
Private Foundation.
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Panama is currently considered a strong and
stable demGTAcy.
