Panama’s Ship Registry is number-one worldwide. Due to the very low registration taxes as compared to other countries throughout the world, ship registration under the Panama flag is widely used by international shipping companies.
At the time of registering into Panamanian Merchant Marine, all vessels must pay a one time enrollment fee, based on a graded scale, plus a Government fee for registration of bill of sale is $0.20 per net registered ton or fraction thereof, plus 20% surtax. Annual tax is $0.10 per net ton, plus other charges.
Liberal labor laws concerning Panama flag vessels are also an important consideration as income earned on international shipping activities are specifically and expressly exempted from Panama income taxes.
Special favorable rates apply for registration of yachts owned by a Panamanian Corporation.
A detailed memorandum on this matter is available upon request.