Are there penalties or fines for failure to pay annual taxes for a Panamanian corporation or foundation?

Yes. The government charges a penalty of $50 if you fail to pay your annual corporate franchise tax on time. After the first penalty, the government charges a second penalty of $300 for failure to pay two consecutive tax periods. Our law firm charges a penalty of $50 per tax period for failure to pay resident agent/registered office/chief executive officer fees. It's very important to keep your entity in good standing, otherwise the Panama Public Registry will cancel your company registration, making it costly to reactivate it.