What is a Foundation?
Foundations are always made for the benefit of a group of individuals in general, Panama Private Interest Foundations are generally used for estate planning purposes that ensure a safe transition of assets to beneficiaries of the family, the foundation will offers privacy, anonymity and protection to the Founders and Beneficiaries of the Foundation.
Private Interest Foundations in Panama are governed under Law 25 of June 12 1995, consist of one or more individuals or entities, or through third parties and requires the creation of a patrimony exclusively for the objectives or purposes expressly set out in the founding act, this means that the operations for which the foundation was created can not be away from those previously described in the founding act at the time of its formation.
In Panama, a foundation is valid from the time it register with the Public Registry.
It is clear and well explained by the third article of the Law 25 of 12 June 1995 which describes the fundamentals of the foundation can not be for profit. However, they can conduct business in an unusual way, or exercise the rights deriving from titles representing the capital of the companies that make up the assets of the foundation, provided that the outcome or the economic output of such activities be dedicated exclusively the purpose of the foundation.
Within some of the advantages of private foundations that are formed to take effect from the time of its creation or after the death of its founder, by any of the following methods:
1. through a private document signed by the founder, whose signature must be authenticated by a notary public in the place of incorporation. 2. Just before the prescience of a notary public at the time of its formation. 3. By fulfilling all the formalities of the law.
For all legal purposes, the foundation's assets constitute a separate estate of the founder's personal assets. Therefore can not be seized, attached or subject of the action or injunction, except for obligations incurred or damages caused during the execution of the purposes and objectives of the foundation, or the legitimate rights of the Scientific support Professional law essential for all recipients. In no event be liable for personal obligations of the founder or the beneficiaries.
Shall be exempt from all taxes, contributions, fees, charges or taxes of any kind and description, the acts of creation, modification or termination of the foundation, as well as acts of transfer, assignment or encumbrance of assets of the foundation and income such property or any other act on them, provided that such property is:
- Foreign assets.
- Money deposited by natural or juridical persons whose income is not of Panamanian source or not taxable in Panama for any reason.
- The shares or securities of any kind, issued by companies whose income is not of Panamanian source, or when their income is not taxable for any reason, even when such shares or securities are deposited in the Republic of Panama.
Also exempt from all taxes, acts of transfer of real estate, securities, certificates of deposit, securities, cash or shares in complying with the purposes and objectives or the extinction of the foundation for family
- That is the foundational act, which is important, and should contain?
- The name of the foundation, expressed in any language with the Latin alphabet, it will not be the same or similar to another foundation that exist in the Republic of Panama, in order not to cause confusion.
- The name must include the word "foundation" to distinguish it from other natural or legal persons of a different nature. The initial capital of the foundation, expressed in any legal tender in no case less than an amount equivalent to ten thousand dollars [B /. 10,000.00].
- The description in full and clearly, including the address of the member or members of the Foundation, the founder may belong.
- The domicile of the foundation.
- The name and address of the resident agent of the founding of the Republic of Panama, to be a lawyer or law firm, who must countersign the foundation charter prior to the Registration Office.
- The purpose of the foundation.
- The way to designate the beneficiaries of the foundation, among which may include the founder.
- . We reserve the right to modify the foundation charter whenever deemed appropriate.
- The duration of the foundation.
- The destination will be given to the assets of the foundation and the shape of the liquidation of assets on dissolution.
- Any lawful clause the founder sees fit.
The foundation charter and any changes you make to it, must be written in any language with Latin alphabet characters and comply with the rules for registration of deeds and titles in the Public Registry, which must be previously notarized of the Republic. If the foundation charter or its amendments are written in Spanish, should be the standard protocol, together with its translation, performed by an authorized translator of the Republic of Panama.
- What are the costs of taxes?
Every private foundation must pay registration fee and an annual flat rate equivalent to that provided for companies in Articles 318 and 318 of the Tax Code. That is 250 at the time of the constitution and 300 per year. The procedure and method of payment from the end, the consequences for non-payment and all other complementary provisions of the laws mentioned above, which apply to private foundations.
- What is the Foundation Council and their rights?
The Board of Trustees are responsible for compliance with the purposes and objectives of the foundation, unless express other brands in the foundation charter or its regulations, the Foundation Council shall have the following general obligations and duties:
- Manage the assets of the foundation, according to the foundation charter or its regulations.
- Celebrate acts, contracts or legal transactions that are desirable or necessary to meet the objectives of the foundation, and include in contracts, agreements and other instruments or obligations, terms and conditions necessary and appropriate, to suit the purposes of the foundation and not against the law, morals, good customs or public policy.
- Inform beneficiaries of the foundation of the financial situation of the latter, as established by the foundation charter or its regulations.
- Deliver to the beneficiaries of the foundation the assets or resources in their favor have set the foundation charter or its regulations.
- Acts or contracts by this Law and other laws or regulations that apply, allows the foundation.