OUR DESTINATIONS: PANAMA
Benefits of Holding Your Event in Panama (FOR US COMPANIES)
The Free Trade Agreement that Panama signed with the United States includes the IRS Revenue Ruling 2011-26, 274 (h) (6) in which Panama is considered to be included in the North American area with respect to expenses incurred in attending a meeting or convention.
This means US companies can hold business meetings and conventions in Panama with the knowledge that business expenses related to the Panamanian facility are tax deductible in the US.
As always, a business will need to maintain adequate documentation to support any business deduction claimed on its US income tax return. Revenue Ruling 2011-26 does not impose any additional reporting requirements for US business, but simply includes Panama as a jurisdiction that will be considered as part of the North American area for purposes of deducting convention expenses.