Panama vs British Virgin Islands
Corporate Tax Comparison
Time of Update: Panama: 4/04/2026 / British Virgin Islands: 4/04/2026
Compare Panama and British Virgin Islands corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Panama vs British Virgin Islands Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Panama
British Virgin Islands
General CIT Rate:
25
General CIT Rate:
The British Virgin Islands does not impose a corporate income tax on businesses. This tax-free environment is a significant reason why the BVI is an attractive destination for international businesses https://tradecouncil.org/corporate-income-tax-in-the-british-virgin-islands/
CIT Return Due Date:
Three months after the end of the fiscal year.
CIT Return Due Date:
N/A
CIT Payment Due Date:
Tax payments must be made within three months after the end of the respective accounting period.
CIT Payment Due Date:
N/A
CIT Estimated Payment Due Date:
6 months, 9 months, and 12 months after the end of the tax year.
CIT Estimated Payment Due Date:
N/A
Withholding Tax (WHT)
Panama
British Virgin Islands
Resident Withholding Tax (Dividend/Interest/Royalty):
5, 10 - 20/NA/NA
Resident Withholding Tax (Dividend/Interest/Royalty):
0%
None-Resident Withholding Tax (Dividend/Interest/Royalty):
5, 10 - 20/12.5/12.5
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0%
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Panama
British Virgin Islands
General Capital Gain Tax Rate:
Return on investment sees Panama Company tax summary.
General Capital Gain Tax Rate:
0%
Effective Tax Rate (ETR)
Panama
British Virgin Islands
Composite Effective Average Tax Rate:
23.33%
Composite Effective Average Tax Rate:
Composite Effective Marginal Tax Rate:
18.47%
Composite Effective Marginal Tax Rate:
