The Government of Panama has launched a tax moratorium through Law 446, enacted on October 28, 2024, which will be in effect until December 31 of this year. This initiative will allow taxpayers, individuals, and legal entities to catch up with their tax obligations without applying interest or surcharges on the balance owed to the General Revenue Directorate (DGI) in national taxes.
To benefit from the exemption of interest, surcharges, and penalties, taxpayers must pay the entire balance due, including applicable fines. However, unlike previous moratoriums, this law does not contemplate reducing or exonerating fines for late filing of returns, forms, or other formal obligations after the established term.
The measure includes the following taxes:
- Income tax
- Real estate tax
- Operation notice tax
- Tax on the transfer of movable goods and services (ITBMS)
- Selective consumption tax
- Single rate for corporations and private interest foundations.
Likewise, the moratorium covers outstanding debts until June 2024 of withholding agents for taxes withheld, including income tax and educational insurance. These debts may be canceled without penalties until December 31 of this year.
The DGI has made its web portal (https://dgi.mef.gob.pa), social networks, and offices throughout the country available to taxpayers to provide additional details on this moratorium, which seeks to alleviate taxpayers’ tax burden in the current economic context.