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Tax Legislation and Practice - Coggle Diagram
Tax Legislation and Practice
It is divided into the following points
ITBMS
Subject of the tax
Individuals, corporations with or without legal status that, in the exercise of their activities, perform the encumbered acts and act as transferor of movable tangible property and/or as service providers
Impossible base and rate
Impossible basis
It is the transfer of goods: it is the price
This price will be integrated with all the amounts charged to the buyer or borrower, as well as the accessory services provided by the taxpayer for the benefit of the purchaser.
Price list
The rate of this tax is 5%, except for the exceptions indicated, for which the rate will be 10%.
Object of the tax
Article 1057
A tax is established on the transfer of personal property and the rendering of services carried out in the Republic of Panama.
Exceptions and other provisions
Transfer of negotiable documents and securities in general
The expropriation, sales and services provided by the State.
Transfers in marriage settlements, division of marital assets.
Real estate tax
Dates and places of payment
787
It will not be possible to pay a quota or item of the tax or all of it, without previously paying the quotas or items.
Article 786
The tax corresponding to one year can be paid in three installments or items.
Article 791
The obligation to pay tax prescribes 10 years from the last day of the year in which it was due.
General provisions
Article 792
No registration will be made in the public registry of property subject to these taxes until it is verified that the property is in peace and safe with the tax authorities.
Article 794
The Head of the Public Registry is obliged to inform the General Internal Revenue Service of all registrations on a weekly basis.
Article796
For the formation and revision of the real estate cadastre the state agency is obliged to provide the cadastral commission and the general administrator of internal revenue with all necessary cooperation.
Purpose, Subject and Rate of the Tax
Article763
The object of the real estate tax is all the lands located in the jurisdictional territory of the Republic, as well as the buildings and more.
Article 764
se exceptúan algunos impuestos
Those of the state, of the municipalities and of the associations of municipalities.
Those destined or intended for public charity or social assistance, without any profit motive.
Sanctions
Article 797
Violators of the provisions of this title shall be punished with a fine of not less than B/.25.00 or more than B/.500.00, depending on the severity of the infraction committed
Import and export tax
Extreme Legislation
The main rules are contained in the Fiscal Code, as well as in the import tariff and subsequent modifications.
Re-export
Transit
Export
Import
Structures
Law and Obligations
The third book of the Fiscal Code identifies three types of customs infractions. Each one of them has assigned the respective sanctions.
Fraud
Smuggling
Faults
Tax Returns
The imported merchandise is appraised by the customs officers who then proceed to pay the tax and other corresponding
Study of the legalization
All persons who export non-traditional goods produced or processed in whole or in part in Panama may apply for or avail themselves of the benefits of the law.
For example
Have a national content of at least 20% of the cost of manufacture or production and contain at least a national value.
Have a minimum of 10% in the cost of manufacturing or production, as long as they are located outside the metropolitan area.
The following are not considered non-traditional products
Cocoa beans
Bananas in fruit and mashed bananas
Cane Sugar
Fresh refrigerated shrimp
Income Tax
Tax returns, reports and settlements
Article 713
You may file your income tax returns on a different date referred to in article 710.
Article 712
Income tax returns will be prepared and countersigned by an authorized comptroller.
Article 711
The declarations may be submitted on forms prepared by the general directorate of income.
Article 710
Every taxpayer is obliged to present, personally or through a proxy or representative.
Article717
Any natural or legal person that by the termination of its business must be subject to the income tax related to it.
Article 716
The rent must be accompanied by the taxpayer's profit and loss statement and attachments required for correct determination.
Article 715
Each year's statements should form a separate whole from the statements of the other years
Article 714
The taxpayer who takes advantage of the provisions of the previous article is obliged to declare the income obtained during the period of twelve months.
Article 722
The amount or sources of income or profits, or losses, expenses or any other relative data may not be disclosed in any way.
Purpose, subject and rate of the tax
Article 700
The natural persons will pay for their net taxable income the income tax accordingly.
Article 696
Gross income is the total, without deducting any amount, of the taxpayer's income in money, in kind or in value.
For example
All kinds of leasing or renting
Gains obtained in the disposal of movable and immovable property, bonds and shares
Profits or earnings from business, industry, commerce or agricultural activities
Wages, salaries, commissions, pensions, retirements and remuneration for personal services
Article 697
Deductible expenses or outlays are understood to be the expenses or outlays incurred in the production of income and in the source observations.
Article 695
Taxpayer's taxable income is the difference or balance that results when deducting from your gross income or general income
Article 698
Exceptions are made for expenses which by their very nature could not be accurately determined in the year they were to be deducted.
Article 694
The object of this tax is the taxable income produced, from any source, within the Republic of Panama, wherever it is received.
Paragraph 1
It comes from personal work when it consists of salaries and other remunerations that the State pays to its diplomatic or consular representatives or other persons who entrust the performance of functions outside the country.
Paragraph 2
It is not considered produced within the territory of the Republic of Panama
Direct
Dividends or shares of legal entities
Invoice
Article 699
Legal entities will pay for their net taxable income for the fiscal year
Article 701
The taxable income will be the difference between the disposal value and the sum of the basic cost of the asset.
Article 702
Any natural or juridical person receiving dividends from the persons mentioned in section 701 shall not be required to pay the tax on such dividends.
Payment, withholding and prescription of tax
Article731
The system of payment by income tax retention is established in the cases stipulated in articles 732,733 and 734.
Article737
The right of the treasury to collect the tax to which this title refers prescribes at 7 years
Article 728
The whole of the part of the tax referred to in article 720 of this code and the whole of the tax referred to in article 746 must be paid with a 10% surcharge
Article 738
The term of pre-registration is interrupted
By executive order issued against the taxpayer.
Duly guaranteed written promise of payment by the taxpayer
Article 727
Except for items 710, the tax amount can be paid in one lump sum or in three equal lump sums
Exemptions and Deductions
Article 708
They will not cause tax
The income of the State, the municipalities, the associations of municipalities and their institutions.
Article 709
Income tax must be paid, individuals will be entitled to deductions
B/.800.00 for basic deduction
Contributions to educational insurance