Panama: Change in Income Tax Payments

Given the failure of the monthly payment system, income tax payments will be made in three installments a year and will be calculated using estimates.

Tuesday, July 3, 2012

According to an article in "With this move the government recognizes the failure of an unwieldy mechanism and that has not generated the expected revenues. Tax consultant Osvaldo Lau said that ‘the aim was to improve cash flow, but the exercise failed, because the absolute value of tax revenues did not meet expectations. '"

The new system will apply from September.

The president of the Chamber of Commerce, Irvin Halman said it is not convenient to modify tax regulation often, while the former president of the Union of Small and Medium Enterprises, Elsa Guanti, indicated that they preferred the monthly payment system, "it is not the same paying $500 as it is paying $50 every month. "

More on this topic

Panama: Tax Rule Declared Unconstitutional

January 2013

The Office of Administration agreed with the Chamber of Commerce in pointing out the unconstitutionality of the change in the method of paying income tax.

According to the Administration Office of Panama, the way that the regulation is applied does not meet public order reasons.

Panama Failing to Meet Fiscal Deficit Target

November 2011

While legally the fiscal deficit may reach as high as 3% during 2011, the government had announced that it would not exceed 2%, which now looks impossible to achieve.

Tax revenues are not meeting the levels predicted at the beginning of the budget year, which seems likely to mean that Panama's fiscal deficit will go above the target of 2% of GDP set for the year

Front and Back of Panama's Tax Reform

March 2010

Experts discuss the impact of a proposed 5% to 7% increase in the ITBMS tax, which is paid when transferring movable goods and providing services.

Various analysts discuss the effect of this tax in the various sectors of Panama’s economy. The government is defending it by arguing it will be compensated with a decrease in the income tax.

Reforms to the Costa Rican Tax System

August 2011

The reforms include provision for a fine for non payment of partial income taxes, facilitation of tax refunds, and streamlining of tax collections on luxury homes.

The Legislature has approved the "Project for urgent reforms of the tax administration", the first of the proposals included in the tax reform promoted by the Chinchilla administration in the package entitled "Solidarity Tax Act."

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