Panamanian tax guidance

Taxation

Sound tax advice requires a coordinated view. Our auditors, certified public accountants, and lawyers advise across Panamanian tax law with the goal of managing fiscal exposure responsibly.

Tax services

Free trade agreements
Income tax returns
Real estate taxes
Accounting books
Fiscal exposure planning
Panamanian fiscal opportunities
ITBMS payments
Final declarations
Tax prescription applications
Rectification applications
International taxation

Real estate tax

Real estate tax exemptionApplication for exemption from real estate tax on a property that meets one of the grounds set out in the law. Once approved, the retroactive effect owed from the date the grounds first existed is applied, and the balance due or refundable is adjusted accordingly.
Extension of an exemption to improvementsApplication before the DGI to extend a property's exemption so that it covers the full value of its improvements, deduct any tax charged in excess, and apply the retroactive effect in the owner's favor.
PFT/VP advice and applicationApplication before the DGI for a significantly more favorable real estate tax rate, after confirming that the property qualifies as family tax patrimony (PFT) or principal residence (VP) and that the application is in the owner's interest, since it automatically waives the exemption currently in force.
Freezing of the cadastral value (retirees)Application through which owners of retirement age — or legal representatives of companies that own property — may request that the cadastral value of their property be frozen.
Real estate tax payment handlingPayment of a property's real estate tax before the DGI on the client's behalf, with written proof of payment delivered within an agreed period.
Automatic tax notification service (balance and due date)A report sent every four months to subscribers showing the real estate tax outstanding on each property: tax, surcharges, interest, payment dates, and a history of payments made.
Real Estate Tax Diagnostic (DATI)A property tax report combining e-Tax 2 records with information the owner provides in a questionnaire, producing recommendations for the filings that reduce real estate tax and that prevent and mitigate the risk of tax fraud involving the property.

Refunds and undue payments

Tax refund on a purchase, sale, or donationClaim before the DGI for restitution of the 3% capital gains tax advance, where the property sold for less than its updated cadastral value and a refund is therefore owed.
Refund of undue paymentsClaim before the DGI for restitution of amounts paid unduly or in excess as taxes, penalties, and interest, as well as of advance payments and other amounts owed under the substantive rules of each tax that generate a credit in the taxpayer's favor.
Collection of an approved refundFiling before the DGI, once the resolution ordering a tax refund has been issued, so that payment is released to the taxpayer entitled to it.

Debt, moratorium, and prescription

Payment arrangementApplication before the DGI to avoid coercive collection proceedings that could lead to the property being auctioned for arrears. A 50% down payment is normally required, though it may be lower for very large balances; the debt is then divided into monthly installments and bears interest.
Moratorium applicationA relief measure approved by special law: where the tax owed is paid or a payment arrangement is signed, surcharges, fines, and interest are deducted.
Tax prescription within a moratoriumFiling to have the prescription of taxes recognized and the balance adjusted from the date those taxes fell due.
Reinstatement of dormant legal entities within a moratoriumFiling that reinstates a legal entity upon payment of $1,000.00. Under the moratorium, the system allows reinstatement to be requested when the debt is paid and waives the $1,000.00 fee.

Registry, cadastre, and certificates

Tax clearance certificate (paz y salvo)Document certifying that a property is current on its real estate tax, and stating its cadastral value. The property number and location code are required.
Property certificate from the Public RegistryDocument issued by the Public Registry setting out a property's principal details, including the owner's name and the general particulars of the property. The property number and location code are required.
Legal entity certificateDocument issued by the Public Registry setting out a legal entity's principal details, among them its subscribers, board of directors, and share capital.
Tax ID (NIT) for a propertyFiling that establishes the password granting access to the property's e-Tax record, including safekeeping of that password so the owner can retrieve it whenever needed.
Tax ID (NIT) for a legal entityFiling that establishes the password granting access to a legal entity's tax records in e-Tax 2, including safekeeping of that password so it can be retrieved whenever needed.
Tax ID (NIT) for an individualFiling that establishes the password granting access to an individual's tax records in e-Tax 2, including safekeeping of that password so it can be retrieved whenever needed.
Registration of improvementsDeclaration and registration before the Public Registry of improvements made to a property exceeding $30,000.00 in value. It must be filed within a year; a later filing is treated as delinquent and carries a fine.
Cadastral value updateFiling before ANATI to have the cadastral value of a given property updated.
Real estate transfer tax paymentUpdating the property to be sold before ANATI, completing the DGI forms and submitting the supporting documentation for review and approval, and paying the 2% transfer tax on the property's value together with the 3% on the gain.

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