The Government of Panama extends tax amnesty

By enacting Law 208 of April 6, 2021, the Government of Panama extended the general tax amnesty for the payment of taxes, as a measure of relief for taxpayers affected by the pandemic and to encourage the country’s economic reactivation.

The main provisions of said Law are:

• Taxpayers will have until the 31^st of August, 2021 to make their payments or to enter into payment arrangements in respect of outstanding tax obligations until the 31^st of January, 2021.
• Outstanding tax obligations since January 31st, 2021 and since earlier dates can reach arrangements and take advantage of the extension of the tax amnesty, saving 85% in interest, surcharges and penalties.
• The law grants individuals and legal entities the opportunity to present again documents that they had to endorse by the 31^st of January, 2021 and grants them the remission of 75% of the amount of the fine, provided that the remaining 25% is paid before the 31^st of December, 2021.

The law can be found in Official Gazette 29256-A.  Click here to download Law 208 of 2021.