Panama vs Canada
Corporate Tax Comparison
Time of Update: Panama: 4/04/2026 / Canada: 4/04/2026
Compare Panama and Canada corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Panama vs Canada Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Panama
Canada
General CIT Rate:
25
General CIT Rate:
Federal corporate income tax: 15%. Provincial and territorial CITs range from 8% to 16%.
CIT Return Due Date:
Three months after the end of the fiscal year.
CIT Return Due Date:
After six months from the end of the company's fiscal year.
CIT Payment Due Date:
Tax payments must be made within three months after the end of the respective accounting period.
CIT Payment Due Date:
Typically, two months after the end of the company's tax year.
CIT Estimated Payment Due Date:
6 months, 9 months, and 12 months after the end of the tax year.
CIT Estimated Payment Due Date:
Tax installment payments are usually due on the last day of each month.
Withholding Tax (WHT)
Panama
Canada
Resident Withholding Tax (Dividend/Interest/Royalty):
5, 10 - 20/NA/NA
Resident Withholding Tax (Dividend/Interest/Royalty):
N/A
None-Resident Withholding Tax (Dividend/Interest/Royalty):
5, 10 - 20/12.5/12.5
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Panama
Canada
General Capital Gain Tax Rate:
Return on investment sees Panama Company tax summary.
General Capital Gain Tax Rate:
Half of the capital gains are considered as taxable capital gains, recorded as company income and taxed at the regular tax rate.
Effective Tax Rate (ETR)
Panama
Canada
Composite Effective Average Tax Rate:
23.33%
Composite Effective Average Tax Rate:
23.74
Composite Effective Marginal Tax Rate:
18.47%
Composite Effective Marginal Tax Rate:
13.74
