General Tax Amnesty
September 26th, 2019, the government of the Republic of Panama approved in third debate the draft Law 78 of 2019 granting a General Tax Amnesty for the Payment of Taxes Managed by the DGI.
Through this Law, all taxpayers (natural persons, corporations and properties) will be allowed to catch up on the payment of their pending tax obligations, without being subject to fines and surcharges.
The tax amnesty period will be 6 months from the effective date of the law.
The Amnesty includes:
All taxpayers who are behind on their taxes as of June 30th, 2019, even if they are in a payment arrangement agreement with the DGI.
Any other debt of money, that in any concept a person, corporation or property has to pay to the DGI.
Property and land taxes.
It constitutes the last window of opportunities for taxpayers to be updated in their tax payments, before the entry into force of the new Tax Procedure Code, in 2020.
To benefit from the amnesty law, it will be enough with the formal notification of the taxpayers of their intention to qualify for the tax amnesty period by presenting themselves, or through their attorney to the DGI, or through the E-TAX website.
The DGI will update the E-TAX system so that, once the nominal balance of the tax has been paid in full, the waiver of the late fees and fines are carried out automatically.
The tax amnesty period will be granted until February 29th, 2020 and will have the following conditions:
If the payment is made between the months of October and November 2019, 100% of all interest, surcharges and fines due will be forgiven.
If done in December 2019, 95% will be forgiven.
If it is in January 2020, 90% will be forgiven.
If payment is made in February 2020, 85% will be forgiven.
Information provided by Derrick Brown CPA. For tax help in Panama contact Derrick at firstname.lastname@example.org