Panama: Tax credit for companies granting purchase discounts to retirees, elderly
Panama: Tax credit for companies
Legislation enacted at the end of 2020 provides an income tax credit to companies that grant discounts to retired individuals, pensioners and the elderly for the acquisition of certain goods and services provided by, for instance, hotels, restaurants, banks, and airlines.
The measures are provided by Law No. 192 (23 December 2020) that modified Law 6 of 1987.
The tax credit available to the taxpayer companies is equal to 100% of the amount of the discount granted. Previously, the amount of the discount could only be considered as a deductible expense for income tax purposes. Also, eligible taxpayer companies granting such discounts can make a complete assignment of the tax credit to another taxpayer.
The tax authority has not yet announced the procedure for obtaining or assigning the tax credit.
Read a January 2021 report (Spanish) prepared by the KPMG member firm in Panama
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