New Tax Amnesty In Panama

• Published date: 07 September 2020
• Subject Matter: Corporate/Commercial Law, Tax, Corporate and Company Law, Income Tax, Franchising
• Law Firm: CLD Legal
• Author: CLD Legal

Through Law 160 of September 1, 2020, Law 99 of 2019 has been modified, which is related to the Tax Amnesty for the payment of taxes. On this occasion it is a Tax Amnesty to which taxpayers, be they natural and legal persons, as well as in regards to land that owe taxes, fees and special contributions due and delinquent as of February 29, 2020 can apply.

On the other hand, the possibility of being able to carry out payment arrangements with the General Directorate of Revenues is open again; even if you have a prior payment arrangement, you can withdraw from it and avail yourself of a new payment agreement as long as you pay 25% of the nominal tax owed, in which case the Panamanian State forgives 85% of the total interest, surcharges and fines. It should be noted that any payment arrangement made at this time must be canceled in its entirety by April 30, 2021.

For companies, limited liability companies, private interest foundations and other legal structures that must pay the annual franchise tax, they can also take advantage of this new tax amnesty in order to pay their surcharges and fines, which are due up to February 29, 2020, with an 85% discount on them.

Likewise, Law 161 of September 1, 2020 was approved, which adds a transitory paragraph to article 318-A of the Tax Code. The paragraph in comment establishes that due to the coronavirus pandemic, the payment is extended, without penalty, until December 2020, of the annual franchise tax for companies, limited liability companies, private interest foundations and other legal...