Panama:The tax reform project put off for 2010

Authorities of the Ministry of Economy and Finance indicated that modifications in the tax schemes will be postponed for the next year, considering that there are many issues to be debated in the National Assembly. Connected to that, the ordinary period of  sessions of the parliament concludes in October and any additional activity will require the notification to extraordinary sessions.

Changes in the tax structure in Panama were among the proposals presented by the current president of the Republic, Ricardo Martinelli, during the recent government campaign that took him to that position. Among the aspects to consider in the project, there are the revisions to income taxes for natural persons and legal entities.

At the same time, the executive approved a law of fiscal settlements that aims to achieve an additional collection of us$ 200 million in 2010. That step is part of the government actions in search of funds to finance different public programs.

Modifications consider the application of a Goods and Services Transfer Tax (ITBMS) and activities of real estates, insurances and banks. Additionally, they plan more contribution by the games of chance, with have contributions of us$ 25 million, as well as the Free Trade Zone of Colón, despite the warnings of possible affectations by companies of that entity.