{"id":234557,"date":"2021-03-30T16:23:40","date_gmt":"2021-03-30T19:23:40","guid":{"rendered":"https:\/\/legalsolutionspanama.com\/blog\/obligaciones-tributarias-empresa-panama\/"},"modified":"2024-04-19T09:44:05","modified_gmt":"2024-04-19T14:44:05","slug":"know-your-companys-tax-obligations-in-panama","status":"publish","type":"post","link":"https:\/\/qa.legalsolutionspanama.com\/en\/blog\/know-your-companys-tax-obligations-in-panama\/","title":{"rendered":"Know your Company's Tax Obligations in Panama"},"content":{"rendered":"

It is as important to incorporate a company as it is to know your\u00a0 company\u00b4s\u00a0 tax obligations in Panama. We must be aware that depending on whether the company generates <\/span>taxable income or not in Panama,<\/span> we will be subject to certain tax obligations that must be complied with, since the majority of these fines are imposed on those who do not comply with the payment in due time and form.<\/span><\/p>\n

Companies that generate foreign source income are not subject to taxation in Panama, therefore the recommendations mentioned below only apply to those companies or corporations whose income is generated within the national territory. In this case we will detail the obligations to which you should pay attention:<\/span><\/p>\n

When is an expense or cost considered deductible?<\/b><\/h2>\n

An income tax-deductible expense or cost deductible for income tax purposes will be considered one, when such cost or expense is necessary to produce the income or to conserve the source. What is relevant is that this cost or expense must be documented in order to be deductible. The invoice is the document that proves the existence of this expense.<\/span><\/p>\n

There are non-deductible costs and expenses that are specified in Executive Order 170, including entertainment, parties, awards, etc.<\/span><\/p>\n

About the Income Tax Return in Panama<\/b><\/h2>\n

The income tax return in Panama is among the most relevant tax obligations of your company in Panama. The income tax return, also known in other jurisdictions as the annual income tax return, must be paid by any individual or legal entity that generates income in the Republic of Panama. <\/span>In this regard, there is a series of information that you, as a taxpayer, should be aware of.<\/span><\/p>\n

\u00bfCu\u00e1ndo debo presentar la Declaraci\u00f3n Jurada de Renta en Panam\u00e1?<\/h3>\n

When should I file the Income Tax Return in Panama?<\/b><\/h3>\n

In accordance with Article 710 of the Fiscal Code of the Republic of Panama, every taxpayer is obliged to file, personally or through a proxy or representative, a sworn declaration of income obtained during the previous taxable year, as well as the dividends or participations contributed among its shareholders or partners and the interest paid to its creditors.<\/span><\/p>\n

The deadlines for the annual filing of this affidavit are:<\/span><\/p>\n