Recently, through Law 99 of 2019, a Tax Amnesty was granted on surcharges and fines for most overdue taxes, allowing taxpayers to pay off their tax debts with the substantial benefit of deducting a large percentage of their accrued penalties.
Taxes on all type of persons, companies, foundations and properties are included in the scope of this amnesty. However, anyone currently being processed for tax evasion or tax fraud will not have access to this benefit.
Taxpayers with payment arrangements already in place and even tax withholding agents may benefit from this amnesty. Hence, exemptions on income tax, property tax, Value Added Tax (ITBMS), fines and surcharges (as well as any other tax) may be requested.
In order to file for the benefits of this amnesty, you must personally appear at the office of the tax authority, Dirección General de Ingresos (DGI), or use the e-Tax 2.0 online tool on the DGI’s website.
The exemption granted on accrued fines and surcharges will range from 85% to 95% of the current amount owing. This depends on how soon the request for the amnesty is filed, starting with a 95% discount if the request is filed before December 31, 2019; 90% if filed in January 2020; and 85% if filed before February 29, 2020.
When it comes to real estate investments, we always advise you to hire legal representation from day ONE, guaranteeing you an uncomplicated and straightforward transaction throughout the time in which you own property in Panama.
By: Andrea Cooper, MBA & Emilio Cornejo Vernaza LL.M.