"Which regulates Law 52 of October 27, 2016, which establishes the obligation to keep accounting records for certain legal persons, as amended by Law 254 of November 11, 2021 and dictates other provisions. "

The purpose of this decree is to comply with the regulation of Law 52 of October 27, 2016, as amended by Law 254 of November 11, 2021, which obliges any legal entity incorporated under the laws of the Republic of Panama, to reflect its financial situation annually, as well as the obligation of custody of its accounting records by resident agents.

The following are exempted from complying with the obligation of these regulations:

1. Those that are taxpayers, tax residents in the Republic of Panama and/or carry out operations that take effect in the Republic of Panama;
2. Those listed on a recognized local and/or international stock exchange;
3. Those owned by an international or multilateral organization or by a State; and,
4. Those who are owners or charterers of vessels registered exclusively under the international merchant marine service of the Republic of Panama.

All foreign Panamanian juridical persons are required to deliver to their resident agent, no later than April 30 of each year, their financial statement, or a balance sheet summarizing their financial situation, signed by the legal representative, any officer or member of the board of directors or council, beneficial owner or attorney-in-fact. Likewise, Panamanian, foreign legal entities without operations must submit a certification or affidavit stating that it has no income, no assets and does not carry out any commercial activity, signed by a member of the board of directors, beneficial owner or attorney-in-fact.

The resident agent, in turn, is obliged to deliver annually to the General Revenue Directorate a sworn statement containing a list of the legal entities for which it has the information established in the Regulations. The resident agent shall deliver the accounting records and supporting documentation for the fiscal periods 2021, 2022, 2023 and 2024 before April 30, 2025.

This resolution provides for the repeal of Resolution No.201-7263 of October 30, 2024, which established the requirements for the request of exception of the fiscal equipment and the electronic invoicing system for the liberal professionals of Panama.

A moratorium is established until December 31, 2024 for the payment of interest and surcharges on several taxes, including income tax, real estate tax and operation notice tax. This moratorium applies to individuals and/or legal entities with delinquent debts in administrative or coercive collection, who upon payment of the total of their balances will be exempted from interest, surcharges and penalties. In addition, taxpayers, as withholding agents with tax arrears until June 2024, may settle their debts until December 31, 2024 directly with the General Revenue Directorate.

Resolution No.201-6102 of September 10, 2024, explains about the revocation of all authorization of continuous forms for the Declaration - Payment of Annual Flat Tax for corporations and private interest foundations, granted to individuals and legal entities. Likewise, taxpayers who have the aforementioned form may use them until they are exhausted.

The list of taxpayers classified as "Large Taxpayers" and those whose category is revoked for the 2022 tax period was published. This classification seeks to improve the attention and management of tax procedures. The lists will be available on the web portal of the General Directorate of Revenues and an e-mail has been created for related queries.

In this September 2024 Newsletter you will find a summary of the most updated information on tax and legal issues.

The General Revenue Directorate (DGI) through Resolution No. 201-6159 of September 13, 2024, extended the deadline for the reporting of financial accounts identified as Common Reporting Standard (CRS), corresponding to the 2023 tax period.

In this September 2024 Newsletter you will find a summary of the most updated information on tax and legal issues.

In this Newsletter August 2024 you will find the following topics:

• Summary of Resolution No.201-1754 of March 26, 2024, which extends the deadline for certain legal entities to submit accounting records and copies of accounting records to resident agents under the provisions of Law 52 of October 27, 2016, as amended by Law 254 of November 11, 2021.
• Tax Calendar August 2024.