Panama: Tax relief, extended due dates for tax returns and payments (COVID-19)
Panama: Tax relief, extended due dates for tax returns
A decree (No.251, 24 March 2020) has been published in the official gazette to provide tax relief in response to the coronavirus (COVID-19) pandemic.
Among the tax relief measures are the following:
- An extension of time to file tax returns for the fiscal year 2019, until 30 May 2020
- An extension of time (120 days) for the payment of certain taxes to 18 July 2020, without giving rise to an accrual of interest or penalties for late payments (this does not apply with regard to income taxes withheld from employees or from payments made to non-residents, dividend tax, certain property tax, among other taxes)
- A reduction of the amount of estimated tax (in general, to be based on 70% of the tax paid for 2019), with the estimates to be paid at two dates—30 September 2020 and 31 December 2020
- Tax amnesty-related relief allowing for a forgiveness of 85% of the interest, penalties, and surcharges and fines for delinquent taxes arising until 30 June 2019 as long as the amount of the entire tax liability is paid no later than 31 December 2020
- An extension of the deadline to 30 June 2020 for submitting certain reports and affidavits (such as transfer pricing reports, information returns of donations received, payroll reports, pension information returns) without incurring a penalty, when originally due by 29 February 2020
Read a March 2020 report (Spanish) prepared by the KPMG member firm in Panama
Read also a March 2020 report [PDF 627 KB] prepared by the KPMG member firm in Panama
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