Panama adopts new classification system for income tax returns

Local contact

EY Global

11 Jul 2023
Subject Tax Alert
Jurisdictions Panama
  • Panama's new classification for income tax returns filed by individuals and legal entities is organized based on the general regime and by economic activity sectors.
  • The Tax Authority has adopted new tax forms to be filed by individuals and certain companies.

The Tax Authority has adopted (Resolution No. 201-4370 of 19 May 2023) new forms for the filing of income tax returns by individuals, whether salaried or non-salaried, as well as for legal entities, insurance companies, agricultural and livestock companies, banks and financial entities, hotels, the legal industry in general, real estate entities, mining entities, and the Panama multinational headquarters (MHQ) sector (Panama Pacifico and Free Trade Zone).


Nearly 16 years earlier, the Tax Authority had approved (Resolution No. 201-2969 of 15 August 2007) forms for the income tax returns of legal entities under regular or special regimes as well for individual salaried employees, independent professionals and merchants. However, these documents were not properly classified based on activities and regimes, limiting their control by the Tax Authority.

New returns

Besides adopting new forms for the income tax return, the 2023 Resolution establishes and clarifies that income tax returns filed for taxpayers with annual gross income exceeding Panamanian Balboa (B) 11,000 must be countersigned by a certified public accountant.

The new Resolution is effective from its enactment in the Official Gazette (i.e., 27 June 2023) for income tax returns for the 2022 fiscal year that have not yet been filed.


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

Ernst & Young Panama, S.A.
  • Rafael Sayagués
  • Luis Ocando
  • Carlos Márquez
  • Meitner González

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.