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Legislation and Tax Practice - Coggle Diagram
Legislation and Tax Practice
Income Tax
It is a tax levied on the utility of individuals, companies, or other legal entities.
Exemptions and Deductions
Article 708.
They will not cause the tax.
Article 709.
Once the taxable income on which the Income Tax is to be paid has been computed, natural persons shall be entitled.
Declarations, Reports and Tax Settlements
Article 727.
The amount of the tax can be
paid in one cash or in three (3) equal installments.
Article 729.
will be paid within the month following that in which the wage, salary or remuneration was earned.
Object, Subject and Tax Rate
Article 694
. This tax is subject to taxable income produced, from any source, within the territory of the Republic of Panama, regardless of the place where it is received.
Article 695.
The taxpayer's taxable income is the difference or balance resulting from deducting deductible expenses and disbursements from his gross income or general income.
Tax Payment, Withholding and Prescription
Article 710.
Every taxpayer is required to submit, personally or through a proxy or representative, a sworn statement of the income obtained during the previous taxable year.
Property Tax
It is a tax levy charged to all land located in the national territory, except those express in the law.
Date and Places of Tax Payment and its Prescription
Article 786.
The tax corresponding to one (1) year may be paid in three (3) installments or items. The payment of the first installment or item must be made no later than April 30; that of the second, no later than the thirty-first of August, that of the third no later than; December thirty-first.
General disposition.
Article 792
. In the Public Registry, no inscription related to real estate subject to this tax will be made until it is verified that the property is in good standing with the Treasury.
Object, Subject and Tax Rate
Article 763
. All land located in the jurisdictional territory of the Republic, as well as buildings and other permanent constructions made or to be made on said land, are subject to Property Tax; whether or not they have a Property Title, registered in the Public Registry of Property.
sanctions
Article 1057
A Tax is established on the Transfer of Personal Property and the Provision of Services (ITBMS) carried out in the Republic of Panama.
ITBMS
(Transfer Tax on Material Goods and Services) is a Panamanian tax similar to VAT, which is levied on the final consumption of goods and services in a multi-phase, non-cumulative manner.
Tax Base and Rate
Tax Subject
Natural persons, companies with or without legal status that, in the exercise of their activities, carry out the taxable events and act as transferors of movable tangible assets and/or as service providers.
The importer on their own account or third party
Exceptions and Other Provisions
Contracts for works or services, public or private, tendered or in execution at the entry into force of this provision, will not cause this tax, provided that said contracts have a certain date.
Object of the Tax
Article 1057-v: A Tax is established on the Transfer of Movable Corporal Assets and the Provision of Services (ITBMS) that are carried out in the Republic of Panama
Import and Export Tax
Tax return
Articles 545, 553, 555, 557, 561, 564 of the C.F. They are the main ones.
Rights and obligations
According to Title VII of the Third Book of the Tax Code, three types of customs offenses are identified: faults, fraud and smuggling. Each one of them has assigned the respective sanctions.
Foreign Legislation
The main regulations are contained in the fiscal code (third book and title II of the seventh book), as well as in the import tariff (law decree No.25 of 1957) and later modifications.
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Legislation study
All persons who export non-traditional goods produced or elaborated wholly or partially in Panama may request and avail themselves of the benefits of the law.