Panama Tax Payments Due

story by Tom Rowley and Don WInner
This is a reminder to any exPats who have Panamanian entities which may owe either estimated income tax payments for 2010 or Real Estate Property taxes.

The first of the three estimated tax payments are due by 30 April and taxes are paid in cash or a certified check payable to Tesoro Nacional at any branch of Banco Nacional de Panamá using a special deposit form from DGi. Keep in mind that 30 April is also a pay day, so go to the BN branch of your choice early or expect to stand in line for a while.

For those who filed a Declaración de Renta for 2009, any estimated tax liability is shown on the second page of that return in the lower right hand corner. Look for the box titled “Liquidación Final del Impuesto Estimado a Pagar”. The “1ra Partida” may have up to three required payments shown representing the liability based on the net income of the prior year which are credited separately, so be careful when filling out the tax deposit form. Those are the amounts you should pay by 30 April. Similar payments are due by 31 August and 31 December.

For those of you whose income fluctuates, we recommend that you estimate the year-to-date income and pay one third of the projected income tax for 2010. And keep in mind that the government in its efforts to equalize the tax scheme has adjusted downward the Corporation (SA) tax rate to 25%.

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Tom Rowley is a semi-retired US CPA who helps exPats with their US and Panamá tax compliance requirements. He can be contacted at tom@panusatsvc.com