Three tax relief projects presented to boost the economy in Panama
The Minister of Economy and Finance of Panama, Héctor Alexander, presented to the National Assembly on Monday three bills that provide fiscal relief and are part of a package of economic recovery actions after the pandemic.
During the virtual session, Alexander presented the first one that modifies the Tax Code to create a Special Income Tax Regime (ISR), applicable to micro, small and medium-sized enterprises (MSMEs), entrepreneurs and entrepreneurs.
The initiative represents a tax relief for micro, small and medium-sized companies, which represent 90% of the country's companies and generate more than 70% of jobs.
MSMEs, as well as entrepreneurs can save between 30 and 50% of the tax payment.
The second bill establishes tax amnesty for the emergency of COVID-19, which establishes a special discount, called “Pronto Pago”, to taxpayers who pay their taxes daily.
The proposal grants a 10% discount to natural and legal persons who have a declared gross income less $2.5 million with respect to their 2018 declaration. The initiative would benefit 137,000 taxpayers in the next three months from of the enactment of the law.
Also presented was an initiative that expands the tax amnesty and grants an extension to taxpayers for submitting their income statement, and make agreements for payment of taxes administered by the General Directorate of Revenue (DGI).
The same had been done from June 30, 2019, in its first stage, but this new extension will be until December 31, 2020 to give taxpayers a fair time to fulfill their obligations.
The proposal modifies Law 99 of October 11, 2019, which granted a tax amnesty until February 29, 2020, and through which it was possible to raise $156 million.
The initiative represents a tax relief for micro, small and medium-sized companies, which represent 90% of the country's companies and generate more than 70% of jobs.
MSMEs, as well as entrepreneurs can save between 30 and 50% of the tax payment.
The second bill establishes tax amnesty for the emergency of COVID-19, which establishes a special discount, called “Pronto Pago”, to taxpayers who pay their taxes daily.
The proposal grants a 10% discount to natural and legal persons who have a declared gross income less $2.5 million with respect to their 2018 declaration. The initiative would benefit 137,000 taxpayers in the next three months from of the enactment of the law.
Also presented was an initiative that expands the tax amnesty and grants an extension to taxpayers for submitting their income statement, and make agreements for payment of taxes administered by the General Directorate of Revenue (DGI).
The same had been done from June 30, 2019, in its first stage, but this new extension will be until December 31, 2020 to give taxpayers a fair time to fulfill their obligations.
The proposal modifies Law 99 of October 11, 2019, which granted a tax amnesty until February 29, 2020, and through which it was possible to raise $156 million.