The Cabinet of Panama has approved the Ministry of Finance to submit a draft bill in the National Assembly providing tax relief measures in response to the Covid-19 pandemic. Tax measures are following:
- Extension of the installment payment for payment agreements entered into by 31 July 2021, given that final payment is made by 31 December 2021;
- Prior installment payment agreements with final payment due by 30 April 2021 are extended to 31 December 2020;
- 85% relief from surcharges, interest, and fines relating to taxes due up to 31 December 2020 if paid in full by 31 July 2021; and
- 50% penalty relief for the late filing of certain return submissions due by 31 December 2020, given that the submissions are made by 31 July 2021 and the remaining 50% penalty is paid by 31 December 2021.
