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Based on Executive Decree No. 3 of 20 January 2023, the General Directorate of Revenues (DGI) issued Resolution No. 201-0717 of 26 January 2023, setting forth the phases in which banks and other financial institutions must implement the use of authorized fiscal equipment or the Electronic Invoice System of Panama (SFEP for its acronym in Spanish), for the operations and services they carry out.
The following outlines the details of each phase and the respective implementation date:
Phase I – Start date of 30 April 2023
In this phase, banks and other financial institutions must implement the use of the SFEP for all commissions for services provided, such as:
Commissions and surcharges
Commissions for savings accounts
Surcharges on savings accounts
Commissions on fixed term deposits
Current account commissions
Current account surcharges
Electronic commerce commissions
Commissions for loans
Fees for overdrafts
Services
Online banking
Mobile banking
Checks sent and received for collection
Safe deposit boxes
Bank drafts
Certification of checks
Gift certificates
Cashier's checks
Local and international transfers
Bank guarantees
Documentary collections
Credit letters
Promissory notes
Other charges for services rendered
Phase II – Start date of 30 June 2023
In this phase, banks and other financial institutions must implement the use of the SFEP for the interest generated by services provided, such as:
Interest Earned by:
Personal loans
Mortgage loans
Automobile loans
Pledge loans
Commercial loans
Lines of credit
Internal financing line loans
Lines of credit advance
Overdrafts
Phase III – Start date of 31 August 2023
The use of the SFEP must be implemented for financial services provided by banks and other financial institutions such as:
Investment banking
Money exchange
Fund administrators
Investment funds
Savings funds
Pension funds
Retirement and social welfare funds
Credit unions
Finance companies
Insurance and reinsurance companies
Factoring
Trustees
Financial leasing companies
Credit cards
ATMs
Notwithstanding the above, banks with an international license, which, from an office established in Panama, manage transactions that are perfected, consumed, or take effect abroad, and carry out activities that require authorization from the Superintendency of Banks, are exempted from the implementation of the SFEP, as long as they do not generate taxable income within Panama.
Banks with a general license and an international license are required to use the SFEP for the financial operations covered under the General License but the operations covered under the International License are excepted from the use of the SFEP.
Finally, this Executive Decree became effective from its publication in the Official Gazette of the Republic of Panama on 26 January 2023.
For additional information with respect to this Alert, please contact the:
Ernst & Young Limited Corp., Panama City
- Rafael Sayagues
- Luis Ocando
- Carlos Márquez
- Meitner Gonzalez
Ernst & Young LLP (United States), Latin American Business Center, New York
Lucas Moreno
Ana Mingramm
Pablo Wejcman
Enrique Perez Grovas
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
- Lourdes Libreros
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
Raul Moreno, Tokyo
- Luis Coronado, Singapore
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.