Taxpayers stand to benefit from tax amnesty
Payments made until February 2020 benefit at decreasing rates.
By: Lombardi Aguilar Group
- Income tax
- Property Tax
- Annual Flat Tax (in Spanish Tasa Unica).
The tax amnesty would benefit owners of corporations and private interest foundations formed in Panama who must pay a US$300 Annual Flat Tax ($400 for private foundations)
Alvaro Aguilar Alfu, partner at Lombardi Aguilar Group (www.laglex.net)
In the municipality of Panama City, Municipal Agreement number 208 of October 15, 2019, was also enacted whereby the city council established a moratorium for the payment of taxes, duties, fees and municipal fines when paid by November 30, 2019.
Aguilar pointed out that companies doing business in Panama may have been accruing unpaid municipal taxes without knowing by having a physical presence in Panama. "Despite the misperception of Panama as a tax haven, companies – even foreign-owned ones – which have a business license for any reason, are likely to owe municipal taxes. Left unattended, these taxes can run into thousands of dollars and the client must file yearly municipal tax returns by each March 31 to avoid overtaxation."
Mr. Aguilar is a graduate of Universidad Santa Maria la Antigua (LLB) and Washington College of Law at The American University (LLM). He has 20 years of business law experience on behalf of local, European and U.S. companies doing business in Latin America.
For more information or the free text of Tax Amnesty Law 99 of 2019 and Municipal Agreement 208 of 2019, contact +507 340-6444, e-mail aaguilar (at) laglex.com, or see: Lombardi Aguilar Group http://www.laglex.com/