Confusion Over Application of ITBMS Tax for Prepaid Cell Phone Cards
(Panama-Guide) In the Republic of Panama the "ITBMS" tax was raised from 5% to 7%, effective 1 July 2010. This tax, known as the " Impuesto a las Transferencias de Bienes Corporales Muebles y la Prestación de Servicios" (ITBMS) (Tax on the Transfer of Movable Goods and Services) applies to some things and not others. For example if you buy a new Rolex, you have to pay the tax. However, most basic food items are exempt from paying the ITBMS.
