Tax Moratorium at the Municipality of Panama

Through Municipal Agreement number 208 of October 15, 2019, the Municipal Council of Panama established a moratorium, as of October 21, 2019, for the payment of taxes, duties, fees and municipal fines.

The taxpayers will have until November 30, 2019 to cancel the total amount owed to the Municipality of Panama, without the respective surcharges and interests. Those who pay the entire amount due during the moratorium period, will be forgiven for the payment of 100% of the surcharges and interest, generated from the commercial activity tax of the business and advertising.

Similarly, some discounts are established for taxpayers who are defaulters in other areas:

• Those taxpayers who have a payment arrangement with the Municipality of Panama at the date of the moratorium period and cancel the entire amount due, will be granted a 25% discount.
• For those taxpayers who have pending the payment of vehicle tax, and pay the total amount owed during this period, 100% discounts will be applied for surcharges; 75% for fines corresponding to expired badge and 75% for contempt.

Benefits will also apply to taxpayers who wish to avail themselves of the moratorium or exemption of 100% of the fine payment for the non-presentation of their Affidavit of Gross Income, who must submit during this period, all the affidavits that they failed to submit and to be up to date in the payment of all their municipal taxes or avail during this period of moratorium to cancel the total amount owed.

This measure arises as a support initiative by the Municipality of Panama in view of the current economic situation in the country, so that taxpayers can afford to pay their taxes.

Contact us at info@keridinerequena.com if you want to know more information about this moratorium and how we could advise you on applying it on your business.