Tax Measures due to the COVID-19 State of Emergency
March 31, 2020Temporary Suspension of Activities in the Construction Industry
March 31, 2020- 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.
