Global Tax Alert (News from Americas Tax Center) | 27 March 2014

Panama amends reporting requirements for monthly Purchase and Non-Taxpayer Reports

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Panama recently eliminated the requirement of offshore companies with offices in Panama1 to file a monthly Purchase Report2 through Resolution No. 201-17026 of 11 December 2013,3 effective as of that date and published in the Official Gazette on 12 December 2013 (the Resolution).

As a result, the obligation to file monthly Purchase Reports now only applies to legal entities and individuals (i) with an obligation to file an income tax return and (ii) that have received gross income equaling or exceeding B./1 million (US$1 million) and/or that owned assets worth B./3 million (US$3 million) or more in the reporting period immediately preceding.

The Resolution also eliminated the requirement of legal entities and individuals to file the Non-Taxpayer Report,4 which is one of the special information forms to be submitted to the tax authorities in accordance with Resolution No. 201-1182 of 18 April 2008.5

In addition to the foregoing, Resolution No. 201-17173 of 16 December 2013, effective as of that date and published in the Official Gazette on 25 February 2014, clarified that the requirement to file the Non-Taxpayer Report for non-governmental associations and organizations duly authorized by the Panamanian Tax Authorities to receive donations that are deductible by the donor for income tax purposes is not eliminated and still applies pursuant to Section 4 of Resolution No. 201-1183 of 18 April 2008.

Endnotes

1. Before the reform, legal entities carrying on business activities from offices located in Panama and generating income (including foreign source), which as of 31 December of the year preceding the tax period to be reported, had received gross income equal to or exceeding B./1 million (US$1 million) and/or which owned assets worth B./3 million (US$3 million) or more, had an obligation to file Form 43 and report their purchases and imports of goods and services on a monthly basis.

2. In Spanish: Informe de Compras e Importaciones de Bienes y Servicios. Also known as Form 43.

3. This resolution amends and restates in its entirety Section 3 of Resolution No. 201-1182 of 18 April 2008 on special information forms to be submitted to the tax authorities.

4. In Spanish: Informe de No Declarantes.

5. E.g., (i) public entities including municipalities irrespective of their gross income and total assets; (ii) civil associations, trusts, private interest foundations, non-profit associations, employer and employee social organizations, cooperatives, savings and credit associations, with gross income equal to or exceeding B./1 million (US$1 million) and/or with owned assets worth B./3 million (US$3 million) or more as of 31 December of the preceding year; (iii) entities or individuals which are not required to file an income tax return and with gross income equal to or exceeding B./1 million (US$1 million) and/or with owned assets worth B./3 million (US$3 million) or more as of 31 December of the preceding year.

For additional information with respect to this Alert, please contact the following:

Ernst & Young Limited Corp., Panama City
  • Luis Eduardo Ocando
    +507 208 0144
    luis.ocando@pa.ey.com
  • Klaus Bieberach
    +507 208 0165
    klaus.bieberach@pa.ey.com
Ernst & Young, S.A., San José, Costa Rica
  • Rafael Sayagués
    +506 2208 9880
    rafael.sayagues@ey.com
  • Alexandre Barbellion
    +506 2208 9841
    alexandre.barbellion@cr.ey.com

EYG no. CM4300