Summary
Panama, as a gateway to both North and South America, is a great location for offshore companies. The Panama corporation is a tax exempt entity, provided that the company income or profits are earned outside of Panama.

The only payment to Panama is in the form of a government tax based on authorized capital. The annual fees of $250 are for share capital no greater than $10,000.

Population
2,808,268 (July 2000 est.)

Legal System
constitutional democracy. based on civil law system; judicial review of legislative acts in the Supreme Court of Justice; accepts compulsory ICJ jurisdiction, with reservatio

Climate
tropical maritime; hot, humid, cloudy; prolonged rainy season (May to January), short dry season (January to May)

Currency
1 balboa (B) = 100 centesimos

Location and Size
Middle America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica 9 00 N, 80 00 W. Total Area: 78,200 sq km