Panama Tax Amnesty Enacted

by Mike Godfrey, Tax-News.com, Washington

26 August 2009

It has emerged that a tax amnesty initiative has been put in place by new Panamanian President Ricardo Martinelli.

The enactment of Law 45 of 2009 puts in place a moratorium on the imposition of surcharges, interest and fines on unpaid taxes that were due by June 30, if the taxpayer agrees to pay a 30% portion of the taxes due initially, and commits, before September 1, to pay the remainder within six months.

Tax payment plans signed after September 1 but before December 31 of this year will still qualify for a exemption on the fines element of the liability, and a 75% discount on surcharges and interest.

Another tax 'first' for the new administration came earlier this month, when President Martinelli signed a free trade agreement with Canada which will eliminate tariffs on over 90% of Canada’s present exports to Panama, across a range of sectors, including industrial, agricultural, forestry, fish and other seafood. It will also expand market access for Canadian services providers in such areas as information and communication technology, and energy and financial services.

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