The Special System of Multinational Corporation Headquarters (MHQ)
Panama for many years, has worked actively to attract and promote investment, employment generation and technology transfer, and at the same time become more competitive in the global economy. For this reason, the National Government in 2007 created Law No. 41(amended Law No. 45 and Law No. 57) with the purpose of attracting multinational companies. MHQ are companies that operate as a foreign company registered in Panama or as a Panamanian company owned by a transnational company. Its objective is to provide services to their Main Office or subsidiary in other countries from Panama.
These companies enjoy benefits in relation to the tax regime in Panama. For example, they are exempt from paying income taxes; provided that they are entities of any nature domiciled abroad and that they do not generate taxable income within the Republic of Panama. Likewise, they are exempt from paying the transfer tax on movable tangible property and the provision of services, under the same conditions.
Source: Ministry of Commerce and Industry - Last update: January, 2019