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 structures that were due pay said franchise tax before July 15, 2020.
It should be mentioned that this last law also adds a transitory paragraph to article 710 of the Tax Code, which grants a discount benefit of 10% of the amount to be paid in taxes, for those taxpayers whose Gross income does not exceed Two Million Five Hundred Thousand Balboas (B / .2,500,000.00), as long as the taxes are paid within the three months following September 2, 2020. This discount applies only to taxes that are caused or must be paid between March 20, 2020 and July 31, 2020, the following taxes are the subject to the aforementioned benefit: income tax (not the one withheld from employees and non-residents), business license, complementary tax and real estate taxes. If you have already paid the taxes, take note that the Government will grant you a credit corresponding to 10% of the amount paid during the period between March 20, 2020 and July 31, 2020 if you meet the established conditions.
We invite our clients to get up to date with their tax obligations, taking advantage of the discounts and payment agreements that the national government has approved.
For any questions you have in relation to this new Tax Amnesty, do not hesitate to contact us.