Panama’s tax authority (Dirección General de Ingresos) has extended the deadline to 30 April 2017, for applications for approval of tax credits related to administrative costs incurred in the implementation and application of the retention mechanism of ITBMS. With the new deadline, the revenue office will now have until 31 May 2017 to evaluate and approve (or reject) taxpayer applications for tax credits.
The tax authority may add to the costs or administrative expenses that may be recognized and approved, all expenses directly related to accounting and computer management systems (e.g., acquisitions of computer equipment, software components and material accounting assets). Concerning the hardware and software components, their depreciation cannot be deducted in later years, since they will be considered to be fully depreciated when they are accepted as costs and expenses that are part of the tax credit claim.
Resolution No. 201-1587 of 20 March 2017 was published in official gazette No. 28243-A of 23 March 2017.
Read a March 2017 report (Spanish) prepared by the KPMG member firm in Panama
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