A new law passed by the local government gives Panama real estate owners a chance to save big on their 2024 property taxes.
Under Law 401, approved on Oct. 5, property owners who pay their 2024 property tx by Nov. 30, 2023, will receive a 25% discount. A similar deal is available for paying taxes in advance for fiscal 2025, according to published reports.
The law also provides significant discounts for people or corporations that pay overdue taxes or penalties. The government is trying to generate revenue and feels the carrot is a better approach than the stick, creating an opportunity for taxpayers to resolve issues.
According to the analysis by the legal site Lexology, the list includes:
- Forgiveness of 50% of fines involving the e-tax 2.0 system for taxpayers who pay the remaining 50% of the fines (Article 22).
- Complete exoneration from fines applied by the General Directorate of Revenue (DGI) to taxpayers for late filing of the Declaration called Form 03 for the 2022 tax period and/or the sales form for the 2022 tax period.
- A regularization period until November 30 to make the payment for the total of the balances owed, including fines and penalties related to the collection enforcement process.
The government is trying to generate revenue and feels the carrot is a better approach than the stick. This also creates a great opportunity for property owners to reduce their tax exposure.
Want to learn? PPR’s team of experts can help navigate the new tax law. Contact us at email@example.com