In the News from Panama

Deadlines Approaching for Panama Tax Amnesty

Anyone paying taxes in Panama has until the end of November to take full advantage of the country’s new tax amnesty program.

The government approved Law 99 in October, creating a short amnesty period for interest and fines on overdue property taxes, withholding taxes and special contributions. Anyone who has missed a payment or incurred fine for late submission can bring their accounts up to date without a penalty.

The deal is good until the end of February, but there is a catch: If the bill is paid by the end of November, 100 percent of any fines will be waived. But the savings drop to 95 percent in December, 90 percent in January and 85 percent by the end of February.

In other words, it pays to move sooner. And it really is a great opportunity to settle any dispute with the Directorate General of Revenue (DGI). (Note: the program doesn’t apply to anyone dealing with a criminal tax evasion charge.)

Beyond the break for taxpayers, the program is expected to raise millions for the government in formerly unpaid taxes.

Taxpayers may apply for the amnesty in person, through a representative or online through the e-Tax 2.0 system.

You can find more information on the DGI site.