Panama, November 9, 2021. By means of the Resolution 201-8097 of August 30, 2021 the General Directorate of Revenue (hereinafter DGI) of the Ministry of Economy and Finance as published in the Official Gazette 29411 of Monday, November 9th, 2021, mandates specific requirements and conditions for natural and legal persons established in the special regime of the Panama-Pacific Economic Area.
The procedures are detailed below:
- Formal recognition by the DGI of the benefits contemplated in Article 58 of Law 41 of 2004.
- Application for a tax residence certificate for legal entities.
- Application for a certificate of tax residence for natural persons.
- Accreditation of benefits established in agreements to avoid international double taxation.
- Application of benefits established for the exemption of real estate, for legal entities under Resolution 201-1838 of 2019.
- Application of benefits established for the exemption of real estate, for natural persons under the provisions of Resolution 201-1838 of 2019.
- Filing of a complaint for Tax Evasion and Tax Fraud in accordance with the provisions of Article 287 of the Code of Tax Procedure.
The rest of the tax procedures which might be needed follow the rules of Resolution 201-1838 in accordance with the DGI’s Portfolio of Services.
Each procedure requires the corresponding analysis of both the activity carried out by the taxpayer within the area and the documents that support it, so it is important to address it with the technical guidance of a tax specialist who can confirm whether the taxpayer can legitimately enjoy any of the tax benefits in that special area.
It is important to clarify that in general terms, in order to enjoy the tax rules in special regimes, formal recognition of the same by the DGI is necessary in order to legally benefit from them and demonstrate to third parties, for example, the tax rule that applies in each case.
For more information on these topics please contact:
Amanda Barraza de Wong
Morgan & Morgan