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In short: the Panama Canal is the largest source of direct income for the Panamanian State and the axis of its logistics platform. In fiscal year 2025 it billed 5.705 billion dollars, 14.4% more than the year before, and handed the National Treasury 2.965 billion in surplus, per-ton fees and charges, the highest figure in its history. From the time Panama took over its administration in 2000 through 2024 it had contributed 28.267 billion dollars, more than half of it earmarked for public investment. Radar Panamá explains how it generates that money, how it reaches the budget, which sectors live…

In short: a company operating in Panama pays income tax of 25% on its net Panamanian-source income, charges and passes on the 7% ITBMS if it exceeds the turnover threshold, withholds dividend tax when it distributes profits, pays each year the Notice of Operation tax of 2% of its equity and the flat annual fee of 300 dollars, and bears the employer contributions to the Social Security Fund and the education insurance on its payroll. Companies that only generate income outside the country pay no income tax, but do pay the flat fee and the resident agent. This Radar Panamá…

In short: Panama's economy rests on five pillars that reinforce one another: the US dollar as legal tender since 1904, the Canal, an international banking centre with more than 160 billion dollars in assets, a logistics and services platform built around the interoceanic waterway, and a territorial tax regime that only taxes income generated inside the country. With them, gross domestic product grew 4.4% in the last full year measured by the National Institute of Statistics and Census, to 90.462 billion nominal dollars, driven by transport and Canal tolls. Its weaknesses are structural too: double-digit unemployment, informality close to half…