New Panama tax law shocks businesses and expats

The surprise new tax law introduced by President Ricardo Martinelli of Panama, has just changed the Panama tax code making Panama companies of all types liable to tax on their worldwide income from now, starting on New Year’s Eve !

Published in the official gazette, under the title of “Law 120 of 30th December 2013″

This will effect thousands of offshore companies, Private Interest Foundations and Trusts etc, nominee directors and public registry officials. Panama also runs a huge ship registry which will be drastically affected by worldwide taxation: most ships are owned by Panamanian companies and no ship owner will want to pay taxes on profits generated by their ships in international waters

Should alternative jurisdictions now be considered?