Forgot to pay your annual Corporate Franchise Tax (Tasa Única) in Panama?
By Edgar Young on 01 September , 2026
You forgot to pay your annual Tasa Única in Panama… What now?
This article focuses on the consequences of failing to pay Panama’s Corporate Franchise Tax, including the applicable fees and penalties, the suspension of corporate rights, and the requirements for reactivation. It also provides a breakdown of the role and obligations of the resident agent, including when a resident agent may resign due to unpaid fees, the requirement to appoint a replacement, and the potential consequences if the entity remains without a resident agent. Finally, the article explains the steps and time limits involved in reactivating a suspended entity and the potential risk of definitive cancellation or dissolution.
What is a Tasa Única?
A “Tasa Única” is a government fee generally categorized as an annual Corporate Franchise Tax, as it is paid only to keep the entity active.
It does not depend on whether the entity generates income, carries on business, or has taxable activities. Instead, it is a fixed fee paid every year by entities registered with the Public Registry. Therefore, it is essentially a fixed fee connected with the entity’s legal existence and registration with the Public Registry.
How much does the Corporate Franchise Tax (Tasa Única) cost?
Panama's Corporate Franchise Tax requires a flat-fee annual payment. The amount of this fee depends on the type of entity:
For private interest foundations: USD 350.00 for the first year and USD 400.00 for subsequent years.
For corporations: USD 300.00 for the first and subsequent years.
When is it due?
Payment shall be made in the semester corresponding to the date of its constitution.
If your entity was incorporated between January 1 – June 30 → the annual payment must be made within this period.
If your entity was incorporated between July 1 – December 31 → the annual payment must be made within this period.
What happens if you don't pay?
Penalties for non-payment typically involve a surcharge of USD 50.00. If two consecutive periods have passed without payment, a reactivation fee of USD 1,000.00 is added to the outstanding amounts and applicable surcharge.
The non-payment of Panama's Corporate Franchise Tax for a period of three (3) consecutive years entails the suspension of the corporate rights of the legal entity, for which the DGI will submit semi-annual reports to the Public Registry.
What does the suspension of corporate rights mean?
The suspension of corporate rights implies the impossibility of:
Starting legal proceedings, conducting business, or disposing of its assets.
Making claims or exercising any rights.
Carrying out any corporate action that is binding on the legal entity.
Nonetheless, when the corporate rights of a legal entity have been suspended, it may:
Submit a request for reactivation.
Manage the defense of any process initiated against it.
Continue legal proceedings instituted on its behalf prior to the suspension date.
The Role of the Resident Agent
Every company or foundation incorporated under Panamanian law is required to have a resident agent. Resident agents have a series of legal obligations, which makes them responsible before the Panamanian authorities for, among other matters, maintaining the necessary KYC/KYB information and keeping their clients’ information up to date.
When can a Resident Agent resign?
If the resident agent has lost communication with its client and its fees have not been paid for a period of three (3) consecutive years, the resident agent has the possibility of resigning from the position.
What happens if a company does not appoint a new Resident Agent?
Within 90 days following the resignation of the resident agent, the company or foundation must appoint a new resident agent. Otherwise, the Public Registry may, ex officio, suspend the corporate rights of the legal entity. In practical terms, the entity will not be able to carry out registry operations until this omission is corrected.
What happens after the suspension of corporate rights?
When the corporate rights of a legal entity are suspended, either due to non-payment of the Corporate Franchise Tax or because the entity does not have a resident agent, the legal entity will have a period of two (2) years to be reactivated.
If the entity is not reactivated within this period, the Public Registry will proceed with its definitive cancellation, or, in other words, its legal dissolution. If this dissolution is completed, the assets and rights of the company or foundation could be endangered.
For advice on how this applies to your business structure, contact us at info@pacifica.legal.