Cortizo enacts a law that reforms the Tax Code and creates the special tax regime for MSMEs
The law through which the Tax Code is reformed and creates a special income tax regime applicable to micro, small and medium-sized enterprises ( MSMEs ), businessmen and entrepreneurs whose total income is less than $500,000 annually, was sanctioned this Thursday by the President of the Republic of Panama, Laurentino Cortizo.
The president highlights that through this initiative the objective is to promote economic reactivation and increase the purchasing power of companies.
The modification of the Tax Code, proposed by the Minister of Economy and Finance, Héctor Alexander, establishes a special rate regime from the fiscal period of 2020 for legal entities according to the total annual income of micro, small and medium-sized companies, entrepreneurs and entrepreneurs. The tax payable on the net taxable income will be as follows:
from $0 to $11,000: 7.5%;
from $11,000.00 to $36,000.00: 10%;
from $36,000.00 to $90,000.00: 12.5%;
from $90,000.00 to $150,000.00: 15%;
from $150,000.00 to $350,000.00: 20%;
and from $350,000.00 to $500,000.00 will pay 22.5%.
The new law establishes that legal persons duly registered in the Business Registry of the Micro, Small and Medium-sized Company Authority (Ampyme) are exempted from the payment of complementary tax and that are not the result of the division of a company that results in several legal persons, neither affiliated, subsidiary or controlled by other legal persons, being exempt those who receive gross annual income that does not exceed $500,000.00 and those in which the shares or participation quotas are nominative and that their shareholders or partners are natural persons.
The Presidency adds that the General Directorate of Revenue of the Ministry of Economy and Finance (MEF) must verify these circumstances every year, while the Executive Branch, through the MEF, will determine the formal requirements that the legal person who wishes to take refuge must meet. to this special regime, this in order to guarantee compliance with this rule.
On the other hand, Cortizo also sanctioned the law that definitively regulates the first option to purchase rented homes in the reverted areas and establishes that the MEF, through the Reverted Assets Administrative Unit, is authorized to sign lease contracts with the tenants or occupants of the dwelling in reverted areas, maintaining the current rental price for a term of five years.
It adds that the MEF will also proceed to legalize the occupants of reverted assets destined exclusively for housing, so that they become tenants and have the first purchase option, for which the tenant must present a social report, copy of identity card, have a minimum of five years occupying the property and be up to date in the payment of the rental fee or a payment arrangement of the delinquency owed, if applicable.
The new law guarantees an essential right to obtain a roof and the enjoyment of an asset for some 500 families in reverted areas that have been renting for decades and that will be the first to qualify to acquire the residence, as long as they meet the requirements of the banking institutions.
In the event that the tenant is unable to comply with any of the requirements, one of the people who lives with him and who appears in the lease may exercise the right to purchase.
The modification of the Tax Code, proposed by the Minister of Economy and Finance, Héctor Alexander, establishes a special rate regime from the fiscal period of 2020 for legal entities according to the total annual income of micro, small and medium-sized companies, entrepreneurs and entrepreneurs. The tax payable on the net taxable income will be as follows:
from $0 to $11,000: 7.5%;
from $11,000.00 to $36,000.00: 10%;
from $36,000.00 to $90,000.00: 12.5%;
from $90,000.00 to $150,000.00: 15%;
from $150,000.00 to $350,000.00: 20%;
and from $350,000.00 to $500,000.00 will pay 22.5%.
The new law establishes that legal persons duly registered in the Business Registry of the Micro, Small and Medium-sized Company Authority (Ampyme) are exempted from the payment of complementary tax and that are not the result of the division of a company that results in several legal persons, neither affiliated, subsidiary or controlled by other legal persons, being exempt those who receive gross annual income that does not exceed $500,000.00 and those in which the shares or participation quotas are nominative and that their shareholders or partners are natural persons.
The Presidency adds that the General Directorate of Revenue of the Ministry of Economy and Finance (MEF) must verify these circumstances every year, while the Executive Branch, through the MEF, will determine the formal requirements that the legal person who wishes to take refuge must meet. to this special regime, this in order to guarantee compliance with this rule.
On the other hand, Cortizo also sanctioned the law that definitively regulates the first option to purchase rented homes in the reverted areas and establishes that the MEF, through the Reverted Assets Administrative Unit, is authorized to sign lease contracts with the tenants or occupants of the dwelling in reverted areas, maintaining the current rental price for a term of five years.
It adds that the MEF will also proceed to legalize the occupants of reverted assets destined exclusively for housing, so that they become tenants and have the first purchase option, for which the tenant must present a social report, copy of identity card, have a minimum of five years occupying the property and be up to date in the payment of the rental fee or a payment arrangement of the delinquency owed, if applicable.
The new law guarantees an essential right to obtain a roof and the enjoyment of an asset for some 500 families in reverted areas that have been renting for decades and that will be the first to qualify to acquire the residence, as long as they meet the requirements of the banking institutions.
In the event that the tenant is unable to comply with any of the requirements, one of the people who lives with him and who appears in the lease may exercise the right to purchase.