The ABC of the Tax Amnesty in Panama Law 99 of 2019
With this new legal initiative, the taxpayers have the opportunity to clear tax debts without interests, surcharges and fines and to file forms past due without penalties.
Taxes included
Those managed by the Revenues General Directorate
What does the tax amnesty refer to?
- Condonation of:
- Interests
- Surcharges
- Fines
Tax Amnesty Term
If paid | Condonation % |
by Nov 30 | 100% |
By Dec 31st | 95% |
By Jan 31st | 90% |
By Feb 28th | 85% |
Reports due to the DGI can be filed until Dec 31st, 2019 without triggering a fine:
- Donations Report
- NGO´s Report
- Form 03
- Form 40 on Retirement Fund
- Form F-41 insurance companies
- Form 42 interests certification
- Form 43 Purchases Report
- Credit Cards sales Report F-44
- F930 Transfer Pricing Report
- Remittances Abroad Report for SEM and Panama Pacifico Companies.
- Others which establish a fine for late filing
Payment Arrangements
Apply with the payment of 25% of the debt and the remaining portion is cancelled no later than June30th of 2020 and the % of interests, surcharges and fines condoned depends on the month the payment arrangement is executed.
Use of the Benefit in the Law
The interested party must communicate his interest either in person, through a POA or by means of the eTax2.0.
- Published in 2019, amanda_barraza_publi, News
Morgan & Morgan provided pro bono tax advice to Camara de Reciclaje de Panamá, Asociacion Marea Verde, Enseña por Panama y Fundación Banco de Alimentos
Panama, August 6, 2019. The Recycling Chamber of Panama, the Marea Verde Association, Enseña por Panama and the Food Bank Foundation, were authorized to obtain the Resolution of the General Directorate of Revenues (DGI for its initials in Spanish) that approves these organizations to receive donations deductible from income tax.
Associates Amanda Barraza and Angelica Ortiz, tax specialists at Morgan & Morgan, provided the necessary tax advice to these social interest groups, beneficiaries of our pro bono program.
- Published in 2019, amanda_barraza_publi, Angelica Ortiz, News
Morgan & Morgan Forum on Transfer Pricing
Morgan & Morgan, in partnership with Grupo Camacho Internacional (Costa Rica), presented a forum on Transfer Pricing Matters for a distinguished group of clients of the firm with the objective of updating them about important changes on this complex issue, which affects both local and multinationals companies with operations in Panama.
The topics were presented by Vladimir Blanco Solano and José Guerra Tovar, partner and manager of Grupo Camacho Internacional. As well as partner Enrique Jimenez and lawyers Adolfo Campos, Amanda Barraza and Angelica Ortiz; and the accountant Carlos Sinisterra; all of them members of the Tax Law Department of Morgan & Morgan.
Thus, Morgan & Morgan reaffirms its commitment as a leading firm in tax and fiscal matters, always ahead in benefit of their clients.
- Published in 2019, Adolfo Campos, amanda_barraza_publi, Angelica Ortiz, Barraza Amanda, Enrique Jimenez, News, Taxation
The Tax Residence in Panama
By: Amanda Barraza de Wong, Associate, Tax Law
With Panama being a jurisdiction whose tax system is based on the Principle of Territoriality, and whose economy revolves around financial, legal and logistic services… what policy should it have with regards to foreign capital? Certainly a policy for attracting direct foreign investment. Capital that provides financing for development itself. And that capital does not arrive alone; it is accompanied by natural or legal persons, which motivates the analysis of whether to consider them tax residents or not.
In Panama, we have specific criteria to determine after a study of each particular case, whether a natural or legal person can be considered a tax resident under the provisions of both the Tax Code and the Treaties to Avoid Double Taxation in force.
Tax residence certificate
The residential tax certificate is the document that accredits a person, being a natural or legal person, his/her tax residence in our country and it is only issued by the General Directorate of Revenues (DGI) based on article 762-N of the Tax Code, Executive Decree 958 of 2013 and regulatory resolutions.
Requirements
The basic requirements established by the DGI for the issuance of the Tax Residence Certificate in the Republic of Panama are the following, in addition to the criteria that underlie the analysis:
- Petition addressed to the DGI containing:
- Clear and express identification of the applicant.
- Specification of the tax treaty or agreement to which it wishes to be allocated, when applicable.
- Original Public Registry Certificate, in the case of legal persons.
- Copy of identity card or passport of the applicant or the Legal Representative.
- Power of attorney, in case of legal persons.
- Other relevant evidence.
Conclusion
Since the fiscal year 2010, there have been several regulations issued on this concept; it is a topic that has been developed particularly over time and we believe that it will continue to evolve.
- Published in 2018, amanda_barraza_publi, Barraza Amanda, Press Room, Publications
Notificación Previa para Aplicación de Beneficios Fiscales en Panamá
Este artículo se publicó por primera vez en Tax Planning International Review-Bloomberg BNA, Febrero de 2014
Por Amanda Barraza de Wong, Asociada, Morgan & Morgan, Ciudad de Panamá
A la fecha, Panamá ha suscrito numerosos Tratados Fiscales para evitar la Doble Tributación. Los contribuyentes deben notificar a las autoridades fiscales su intención de acogerse a cualquiera de los beneficios a través de una solicitud formal. No hacerlo podría ocasionarles la pérdida total de tales beneficios y su omisión pudiera, posiblemente, considerarse evasión fiscal.
El Código Fiscal y una resolución adoptada recientemente, disponen las bases legales para que tal notificación sea obligatoria cuando el beneficio conforme a estos tratados sea aplicable. Por lo tanto, aunque un contribuyente pueda estimar que una transacción en particular está cubierta por un tratado fiscal, y cumple con condiciones específicas, la aplicación del beneficio no es válida hasta que se presente la solicitud formal en el término estipulado.
La solicitud formal de intención de acogerse al beneficio conforme a un Tratado de Doble Tributación específico debe presentarse a través de abogado, indicando el artículo del tratado al cual se refiere, 30 días antes de la fecha efectiva en que se realizará la transacción. Tal notificación debe ir sustentada como mínimo, por los documentos correspondientes que evidencien la transacción a ejecutarse, un certificado de residencia fiscal del beneficiario debidamente autenticado y traducido al español, un certificado del Registro Público del solicitante, y una copia del documento de identidad del representante legal del solicitante cuando sea persona jurídica.
La solicitud se considera válida dependiendo de la especificación del solicitante. Si se menciona solamente una transacción, deberá cubrir solamente esa transacción; sin embargo, si el solicitante menciona que la transacción tiene lugar periódicamente, deberá cubrir el término indicado hasta la fecha especificada como periodo válido del certificado de residencia fiscal que se adjunta. Si el certificado no estipulara un periodo específico de validez, se considerará válido por un año.
Estimamos que el procedimiento se introdujo para evitar abusos y hasta fraudes. No obstante, en la práctica, es difícil cumplir con el mismo ya que la administración fiscal debe atender miles de notificaciones. En nuestra opinión, este mecanismo será modificado a corto plazo para introducir cambios que implementen una comunicación electrónica rápida, a un costo menor para todos los involucrados.
- Published in amanda_barraza_publi, Press Room, Publications