The Government of Panama extends tax amnesty

By enacting Law 208 of April 6, 2021, the Government of Panama extended the general tax amnesty for the payment of taxes, as a measure of relief for taxpayers affected by the pandemic and to encourage the country’s economic reactivation.

The main provisions of said Law are:

  • Taxpayers will have until the 31st of August, 2021 to make their payments or to enter into payment arrangements in respect of outstanding tax obligations until the 31st of January, 2021.
  • Outstanding tax obligations since January 31st, 2021 and since earlier dates can reach arrangements and take advantage of the extension of the tax amnesty, saving 85% in interest, surcharges and penalties.
  • The law grants individuals and legal entities the opportunity to present again documents that they had to endorse by the 31st of January, 2021 and grants them the remission of 75% of the amount of the fine, provided that the remaining 25% is paid before the 31st of December, 2021.

The law can be found in Official Gazette 29256-A.  Click here to download Law 208 of 2021.