Laws enacted to extend tax amnesty and prompt payment
Laws 160 and 161 have already been published in the Official Gazette of Panama, regarding the extension of tax amnesty and prompt payment, sanctioned in the midst of the COVID-19 pandemic to support taxpayers affected by the economic crisis that generated as a result of the new coronavirus.
Law 160 of September 1, 2020, modifies Law 99, relative to the tax amnesty for the payment of taxes and the Code of Tax Procedure, and dictates other provisions.
This law establishes that taxpayers, natural and legal persons, may benefit from the tax amnesty period; and real estate, caused and delinquent in payment of taxes, fees and special contributions as of February 29, 2020. And in addition, article 5 of Law 99 is modified that the amnesty period is granted until December 31, 2020 .
While Law 161 adds transitory paragraphs to the Tax Code, which grant tax relief for the emergency of COVID-19, and dictates other provisions.
This law modifies article 318-A of the Tax Code, stating that due to the COVID-19 pandemic, the payment without penalty is extended until December 31, 2020 of the single annual rate of public limited companies, companies of limited liability and any other legal entities, as well as private interest foundations that should be canceled by July 15, 2020.
In addition, a transitory paragraph is added to the article of Tax Code No. 710, which indicates that due to the COVID-19 pandemic a benefit of 10% of the total amount to be paid is granted to all taxpayers whose gross income does not exceed two million five hundred thousand balboas who pay, within the three months following the promulgation of this Law, the taxes that are caused or must be paid between March 20, 2020 and July 31, 2020.
Publio De Gracia, general director of the General Directorate of Revenues of the Republic of Panama (DGI), mention on his Twitter account the sanction of these two laws, which he considers will offer tax relief for taxpayers.
De Gracia added that the DGI system team is preparing Etax 2.0 for the benefits that will be offered.
This law establishes that taxpayers, natural and legal persons, may benefit from the tax amnesty period; and real estate, caused and delinquent in payment of taxes, fees and special contributions as of February 29, 2020. And in addition, article 5 of Law 99 is modified that the amnesty period is granted until December 31, 2020 .
While Law 161 adds transitory paragraphs to the Tax Code, which grant tax relief for the emergency of COVID-19, and dictates other provisions.
This law modifies article 318-A of the Tax Code, stating that due to the COVID-19 pandemic, the payment without penalty is extended until December 31, 2020 of the single annual rate of public limited companies, companies of limited liability and any other legal entities, as well as private interest foundations that should be canceled by July 15, 2020.
In addition, a transitory paragraph is added to the article of Tax Code No. 710, which indicates that due to the COVID-19 pandemic a benefit of 10% of the total amount to be paid is granted to all taxpayers whose gross income does not exceed two million five hundred thousand balboas who pay, within the three months following the promulgation of this Law, the taxes that are caused or must be paid between March 20, 2020 and July 31, 2020.
Publio De Gracia, general director of the General Directorate of Revenues of the Republic of Panama (DGI), mention on his Twitter account the sanction of these two laws, which he considers will offer tax relief for taxpayers.
De Gracia added that the DGI system team is preparing Etax 2.0 for the benefits that will be offered.