New Law 446 which grants exemption of interest and surcharges payment on non-paid taxes obligations.

By means of Law 446 of October 28, 2024, published in Official Gazette No. 30149-C, a tax moratorium is granted that exempts the payment of interest and surcharges caused by non-paid taxes obligations, under the following conditions:

• Taxes included: Income Tax, Real Estate Tax, Operating Notice Tax, Tax on the Transfer of Movable Tangible Goods, and Services Provides (ITBMS), Selective Consumption Tax (ISC) and Annual Tax Rates of corporations and private interest foundations.

• The moratorium would be applied by making the payment corresponding to the total of the nominal balances owed, including fines, being exonerated from the total interest, surcharges and salaries related to the executive collection process.

• Special provisions: taxpayers who, as withholding agents, are in arrears for taxes withheld from installments inherent to periods up to June 2024 for Income Tax and Educational Insurance Tax, may until December 31, 2024, extinguish the balances owed by paying directly to the Directorate General of Revenue of Panama.

• This Law will be in effect from its enactment until December 31, 2024.

For more information, please contact our Tax team:

José Rafael Reyes
[email protected]

Angélica Ortiz
[email protected]