Relevant Aspects of Panama’s Tax Amnesty Extension
By Law No. 134 of March 20, 2020, Panama’s
tax amnesty period has been extended until June 30, 2020 for the payment of
taxes owed and arisen until June 30, 2019.
This tax amnesty consists of the condonation
of interest, surcharges and fines of delinquent and owed taxes, including fines
for late filing and omission of tax returns and reports.
85% of the interest, surcharges and fines
for delinquent taxes arising until June 30, 2019 are condoned for payments made
between February 29 and June 30, 2020.
Possibility of signing a payment
arrangement with Panama Tax Authority for the cancellation of taxes arising
until June 30, 2019, obtaining an 85% condonation of interest and surcharges,
provided that you pay 25% of the tax and the entire payment is canceled of debt
no later than December 31, 2020.
Taxpayers will be benefited with this tax
amnesty automatically as long as they have made a payment to settle the debt
they maintain with the Tax Authority, likewise this institution is authorized
to declare upon request the prescribed tax debts existing to taxpayers who as
of June 30, 2019 avail themselves of this amnesty.
The declaration of late improvements will
not cause a fine if, during the validity of the tax amnesty, the taxpayer
submits to the Public Registry a deed on the declaration of not declared new
improvements built, at the entry into force of Law No. 99 of 2019, Amended by
Law No. 134, 2020, extending the term until December 31, 2020.
The deadline for filing late reports and
affidavits without a fine that must have been submitted no later than February
29, 2020 is extended until June 30, 2020 and said exemption from the fine for
the late filing of these reports is subject to the fact that the taxpayer
complies with the conditions and commitments of the aid and stimulation package
or that they are taxpayers who maintain operations.
Any tax resulting from an update and / or
income statement that corresponds to periods prior to June 30, 2019 must
receive the benefits of the Amnesty Law.
