New Tax Moratorium in Panama

On October 28, 2024, Law 446 was published in the Official Gazette, establishing a tax amnesty for the payment of national taxes (the “Law”). This Law grants a moratorium period from its promulgation date until December 31, 2024, applicable to the interest and surcharges generated by the following taxes:

• Income Tax

• Property Tax

• Operation Notice Tax

• Tax on the Transfer of Tangible Personal Property and the Provision of Services (ITBMS)

• Selective Consumption Tax (ISC) and

• Franchise Tax for Legal Entities.

The moratorium applies to all individuals and legal entities, as well as to real estate properties in arrears for taxes, fees, or special contributions in the administrative or enforcement collection procedure. To qualify for this exemption from interest, surcharges, and penalties related to the enforcement collection procedure, the total nominal balance due, including fines, must be paid in full.

Additionally, the Law allows overdue taxpayers, in their capacity as withholding agents, to settle outstanding balances for withheld tax amounts on liabilities for periods until June 2024, related to Income Tax and Educational Insurance, by making direct payments to the General Directorate of Revenue by December 31, 2024.