Government of Panama extends tax amnesty

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

Some relevant points are:

  • Taxpayers will have until August 31st, 2021 to make their payments or to enter into payment arrangements in respect to unfulfilled tax obligations until January 31st of this year.
  • Unfulfilled tax obligations since January 31st, 2021 and with 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 natural and legal persons the opportunity to present again documents that they had to endorse until January 31st, 2021 and grants them the remission of 75% of the corresponding fine, provided that they pay the remaining 25% before December 31st, 2021.

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