Panamanian company audit, financial statements, accounting, consulting in Panama

Audits in Panama are required only for certain categories of entities, including licensed companies, banks, insurance undertakings and firms with publicly listed securities. For other companies, audits may be required if they meet specified criteria related to capital size and annual revenues. Financial statements are prepared in accordance with international standards and may be necessary to satisfy CFC reporting obligations. Our audit services include examination of accounting records, preparation of audit reports, and filing of required reports and notifications in line with local and international requirements.

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(fees are charged on a time-spent basis; the rate depends on the complexity of the work and qualification of the specialist involved)

USD 150-400 per hour

from 2 665 USD

from 550 USD

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+44 0 207 822 85 93

Legislative requirements

Law No. 52 of 27 October 2016 requires all companies in Panama to keep accounting records and supporting documents. A company must show in its records all transactions that took place during the previous 5 years, to enable to determine the company’s activities and financial position with reasonable accuracy.

Documents reflecting the activities of the company must be kept at the office of the local registered agent (resident of Panama) or any other place selected by the company. The registered agent must be informed in writing of any change in records keeping address or contact information within 15 business days. Otherwise, the agent will be required to file their resignation with the Registrar of Companies of Panama.

The obligation to file financial statements applies to companies doing business in Panama, companies that receive income sourced in Panama, licensed organisations, commercial and state banks, insurance companies and companies listed on the stock exchange.

Companies that do not do business in or receive income from Panama are not required to file financial statements or tax returns.

The requirements in relation to CFCs controlled by Russian tax residents are set out in Chapter 25 of the Tax Code of the Russian Federation.

Audit

Statutory audit applies to licensed organisations, commercial and state banks, insurance companies and companies listed on the stock exchange.

Companies resident in Panama must have a statutory annual audit if they meet the following two conditions:

initial capital exceeds USD 100,000;
annual income exceeds USD 50,000.

Non-resident companies have no obligation to conduct an audit.

However, for the purposes of Russian CFC legislation, one needs to have financial statements prepared in line with the IFRS (International Financial Reporting Standards) and an unqualified report by an independent auditor.

Period for filing financial statements

Companies licensed in Panama must submit an annual report and a copy of audited financial statements within 6 months of the end of the financial period.

The deadline for submitting CFC’s financial statements to the Russian tax office is 30 April.

Penalty for non-compliance

Legal entities that have non complied with the requirements set out in Law No. 52 are subject to penalties (a fine of USD 1,000 and a further USD 100 for each day of non-compliance).

Failure to submit financial statements for the purposes of CFC legislation leads to a fine of RUB 500 000 imposed on the controlling person.

Consolidated financial statements

There is no requirement to prepare a consolidated report.

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