Territorial taxation is a source test
Article 694 taxes income produced within Panama irrespective of where payment is received. Its foreign-transaction provisions can exclude qualifying transactions completed or taking effect abroad. Applying that framework to a particular crypto disposal requires analysis of the asset, counterparties and activity. The location of the website used to trade is not a statutory crypto safe harbour. This profile therefore does not assign a verified universal 0% rate.
Rates when income is taxable locally
DGI's individual income-tax table exempts the first B/.11,000 of net taxable income, charges 15% on the slice to B/.50,000 and 25% above that level. These are general income bands, not a crypto allowance or a confirmed rule that all private crypto gains use those bands. Establish whether a special capital-asset provision or another category applies before calculating the tax.
A rejected bill is not an existing tax deal
The Supreme Court declared the whole of Bill 697 unenforceable in its 2023 judgment. Online copies of that bill can contain crypto-specific tax proposals, but they do not establish current relief. A proposed 4% rate or broad exemption from that legislative exercise should not be used in a relocation calculation without a subsequently enacted provision.
Activity, costs and tax-residence evidence
DGI's income overview includes commercial activity, services, disposals, capital investment and asset exchanges in the general income framework. It also restricts deductions for costs connected with foreign-source or exempt income. Mining, DeFi services and frequent dealing therefore need a transaction-level review, including the treatment of losses. For an individual tax-residence certificate, DGI asks for travel movements, a home or lease, utility bills, the activity conducted and other evidence of links to Panama. A residence permit should not be substituted for that evidence.