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Panama - Territorial tax system replaced with worldwide tax system

gardener1

"Late on December 30th, Law No. 120 of 2013 was passed, and two articles were included to amend the tax code. One states:

"Every natural or juridical, domestic or foreign, who receives any taxable income within or outside Panamanian territory, must pay taxes."

The law made it clear that those who are residents, citizens or companies in Panama will have to pay tax-based on their worldwide income instead of only Panamanian-sourced income."





January 6: Newly enacted law in Panama replaces the territorial income tax system with a worldwide tax system.

Law No. 120 of 2013 was published on 30 December 2013.

However, there are reports that the Ministry of the Economy and Finance plans to introduce legislation to repeal the newly enacted worldwide tax system and to support a return to the previous territorial income tax system.

Read a January 2014 report [PDF 147 KB] prepared by the KPMG member firm in Panama: Panama聮s Income Tax Regime: Tax System will remain Territorial

See also

Tax in PanamaTaxes for expats in PanamaHow to Obtain a Tax ID (RUC) in Panama and why you should to it.Do 草榴社区s from USA still pay State Tax?United States IRS TAX PREPARATION HELP
Priscilla

Hi gardener1,

Thank you for sharing this useful information with us, it is much appreciated.聽 :top:

Priscilla
草榴社区 team

John & Amira

I wanted to find out if this law is already in effect and how is it affecting expats in Panama?
We were planning to move this year and now our small pension after taxes in Canada will be taxed yet again in Panama?
Any tips are appreciated.
Thanks!

John C.

gardener1 wrote:

....................
However, there are reports that the Ministry of the Economy and Finance plans to introduce legislation to repeal the newly enacted worldwide tax system and to support a return to the previous territorial income tax system.

Read a January 2014 report [PDF 147 KB] prepared by the KPMG member firm in Panama: Panama聮s Income Tax Regime: Tax System will remain Territorial


Hi there,  :)
I shall be watching for news on this ...  :par:

Hugo&Cyd

Taxes... To add to that statement/info on taxes, here is what good ole USA is doing, starting Jan1, 2014 concerning FATCA.

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