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Tax legislation and practice in Panama - Coggle Diagram
Tax legislation and practice in Panama
Income tax
Object
Taxable income generated within the national territoy
Taxpayers
Natural o legal persons (individuals or entities, domestic or foreign
Rates
Individuals
Progressive based on income
Legal entities
Standard rate of 30%
SMEs
Reduced rates under specific conditions
Exemptions and deductios
Non-profit organizations
Donations, medical expenses, mortagege interest, etc
Declaration and settlement
Annual sworn declaration
Estimated declaration
Submission of financial statements
Paymente and withholding
Withholding at source
Payment through authorized banks
Statute limitations
7 years
Property tax
Object
Real estate located in Panama
Taxpayers
Owners of the property (individual or entities)
Rates
Based on the cadastral value of the property
Exemptions
Properties used for charity, education, or religious purposes
Low-income housing (according to official criteria)
Payment and statute of limitations
Annual payment
15-year statute of limitations
Sanctions
Late fees
Interest charges and penalties
ITBMS
Object
Sale of tangible personal property and provision of services in Panama
Taxpayers
Sellers and service providers
Final consumers (economic burden)
Exceptions
Exports
Financial services
Educational services
Obligations
Issuing invoices with ITBMS
Monthly tax filing to DGI
Keeping accounting records
Sanctions
For evasion, omission or payment delays
Import and export taxes
Objetect
Goods entering or leaving the country
Relevant legislation
Tax code
Customs law
Right and obligations
Importers/exporters must declare goods
Pay applicable duties and taxes
Tax declaration
Customs form (DUA)
Settlement at customs
Infractions
Minor offenses (non-fraudulent errors)
Fraud (international deception)
Smuggling (unauthorized entry or exit)
Sanctions
Fines, seizure of goods, legal proceedings