Does my Panama S.A. need to file income tax returns?

It depends on its income. A company that earns Panama-source income registers with the tax authority (DGI) and files an annual income tax return. A company whose business is carried on entirely outside Panama usually has lighter tax filings there, but it still pays the franchise tax and keeps accounting records (confirm your position with your specialist).

Source: Dirección General de Ingresos, Ministerio de Economía y Finanzas, Panamá