Invoices and Statements of Account

Invoices and Statements of Account
Who do I contact when I have a question about my annuity / assignment invoice or statement of account?

Please contact the collection officer in charge of your account. The name and contact details appear in the lower right side of your invoice or account statement. You may call or send an email.

Factura Estado de Cuenta
What is an annuity invoice?

It is the document issued by Morgan & Morgan showing the amount of fees, expenses and taxes caused and/or to be caused for services rendered for (i) Resident Agent, for a company, private interest foundation, trust or vessel, (ii) Board of Directors, (iii) Foundation Council, (iv) Trustee, as well as the amount of the annual franchise tax payable by companies, limited liability companies and private interest foundations constituted under the laws of Panama, invoiced once a year for handling, representation and registration.

What is a Resident Agent?

Panamanian law requires all companies, trusts and foundations or vessels registered under its laws to appoint a Resident Agent who must be a lawyer or law firm licensed to practice law in Panama. Unless otherwise expressed in the constitution document, the Resident Agent is not authorized to bind or represent the entity in question.

The Resident Agent has no legal capacity to receive service on behalf of the legal entity. The Resident Agent’s powers include keeping the statutory records of legal entities constituted under the laws of the Republic of Panama and with whom they keep a current professional relationship, apply “Know Your Client” measures, provide competent authorities information prior compliance with all fulfillment of the regulations, requirements and legal procedures established by the Republic of Panama to such end, file before a notary for protocolization minutes and/or certifications or extracts of minutes of meetings of directors and/or shareholders of legal entities, act as liaison for payment of the government license fee of corporations and foundations.

What is the Due Diligence fee?

Compliance regulations and Due Diligence procedures in the various jurisdictions serviced by the Morgan & Morgan Group along with policies of multilateral organizations (such as the OECD and FAFT) are having an impact on company formation agents through the direct increase of our costs in the provision of said service. Likewise, there has been a significant increase rise in the responsibility undertaken by Directors/Officers of companies for acts before third parties including stockholders, creditors and more particularly, Government entities. Therefore, our tariffs as of March 1st, 2015 include an Initial Due Diligence Process fee for new incorporations in all our jurisdictions as well as a recurring annual due diligence fee for US$50.00. It begs to clarify that this fee will be charged on a client basis and not on a vehicle basis. That is to say, should one client own more than one vehicle he shall be charged only US$50.00 per annum.

What is the government license fee to the keep the company in good standing?
It is the tax established by law payable annually by companies and private interest foundations constituted under the laws of Panama to remain in good standing. Payment of this tax must be made through the Legal Representative or the Resident Agent of the company or private interest foundation.

What is the sale and services tax (ITBMS)?
The ITBMS (sales and services tax) known in some countries as VAT, is the tax imposed by Panama on the transfer of movable property and some services including legal services.

At present, this tax stands at 7%.

What is the term to pay the government license fee and what are the surcharges and penalties for late payment?

Below you will find the information regarding terms for payment of government license fee as well as the surcharges and penalties per jurisdiction. Payment of the government license fees should be received not later than 5 working days prior to the due date in the table to ensure timely payment to the pertinent Register.

Panamanian companies – 1st Semester: Companies constituted between January and June, both inclusive

Government License Fee Amount

Due Date

Surcharge

(as of July 16)

Penalty
Charged every 2 years after 2 consecutive default periods

Handling fee

(Charged only in case of payment after Due Date)

US$300.00

July 15

US$50.00

US$300.00

US$25.00 +ITBMS

Panamanian Private Foundations

Government License Fee Amount

Due Date

Surcharge

(July 16)

Penalty
Charged every 2 years after 2 consecutive default periods

Handling fee

(Charged only in case of payment after Due Date)

US$400.00

July 15

US$50.00

US$300.00

US$25.00 +ITBMS

Panamanian companies – 2nd Semester: Companies constituted between July and December, inclusive

Government License Fee Amount

Due Date

Surcharge

(as of January 16)

Penalty
Charged every 2 years after 2 consecutive default periods*

Handling fee

(Charged only in case of payment after Due Date)

US$300.00

January 15

US$50.00

US$300.00

US$25.00 +ITBMS

*Failure to pay the annual tax for 2 consecutive terms shall cause in addition to the yearly surcharge, a penalty of three hundred dollars (US$300.00)

BVI Companies – 1st Semester: Constituted between January and June

Government License Fee Amount

Due Date

10% surcharge (June 1 to July 31)

50% surcharge (Aug 1 to October 31)

STRUCK OFF FROM REGISTER (Nov 1 to April 30)

May 1 (restoration)

Handling fee

US$350 (Capital up to US$50,000)

May 31st

US$35.00

US$175.00

US$375.00

US$775.00

US$25.00

US$1,100.00 (Capital above US$50,000)

US$110.00

US$550.00

US$375.00

US$775.00

US$25.00

US$350.00 (Capital not defined)

US$35.00

US$175.00

US$375.00

US$775.00

US$25.00

BVI Companies -2nd Semester: Constituted between July and December

Government License Fee Amount

Due Date

10% surcharge (Dec 1 to January 31)

50% surcharge (Feb 1 to April 30)

STRUCK OFF FROM REGISTER (May 1 to October 31)

Nov 1 (restoration)

Handling fee

(Charged only in case of payment after Due Date)

US$350.00 (capital up to US$50,000)

November 30

US$35.00

US$175.00

US$375.00

US$775.00

US$25.00

US$1,100.00 (capital up to US$50,000)

US$110.00

US$550.00

US$375.00

US$775.00

US$25.00

US$350.00 (capital not defined)

US$35.00

US$175.00

US$375.00

US$775.00

US$25.00

Belize Companies

Government License Fee Amount

Due Date

10% surcharge (August 1 to Oct 31)

50% surcharge (Nov 1 to Dec 31)

STRUCK OFF FROM REGISTER (January 1 to June 30)

July 1 (restoration)

Handling fee

US$100.00 (Capital above US$50,000)

July 31

US$35.00

US$50.00

US$300.00

US$600.00

US$25.00

US$1,000.00 (Capital above US$50,000)

US$100.00

US$500.00

US$300.00

US$600.00

US$25.00

US$350.00 (Capital not defined)

US$35.00

US$175.00

US$300.00

US$600.00

US$25.00

Bahamas Companies

Government License Fee Amount

Due Date

110% surcharge (April 1 to Oct 31)

50% surcharge (Nov 1 to Dec 31)

STRUCK OFF FROM REGISTER (January 1)

STRUCK OFF FROM REGISTER (annual penalty)*

Handling fee

US$350.00 (Capital up to US$50,000)

March 31

US$35.00

US$175.00

US$600.00

$150.00

US$25.00

US$1,000.00 (Capital up to US$50,000)

US$100.00

US$500.00

US$600.00

$150.00

US$25.00

*Annual penalty for each year the Company remains struck-off

Note on Belize and Bahamas companies:

To proceed with any legal transaction in these jurisdictions, tax for the current year must be paid.

Note on companies from other jurisdictions :

For queries regarding expiration dates of companies not listed above, please contact your account officer.

How can I pay?

On-line by credit card, using the link provided in the statements of account and/or invoices or in our web page; by international wire transfer, ACH of local banks and/or check.
The information on our bank routes appear in the lower part of the invoices and statements of account.

Who do I call in case of doubt regarding the content of an invoice?

Please contact the Lawyer directly, if your query relates to:

  • Rates
  • Fee agreements
  • Consultation about an expense invoices
  • If you do not want to keep the Company in force (if an annuity)
  • Evidence of the invoice (Assignments) delivered
  • Changes in the Address and/or Name of the Invoice
  • Copy of Assignment invoiced

Please contact the Collections Officer directly if your queries relate to:

  • Confirmation of payment
  • Expiration dates (if an Annuity)
  • statement of account
  • Information of payment methods
  • Copy of annuity invoice
  • Payments (invoicing and payment of your accounts)
  • Notification to pickup check
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