Panama: Tax on transfers of personal property and services; minimum amount to trigger withholding agent rules
Reduced threshold amount of domestic purchases of goods and services for purposes of triggering the ITBMS withholding agent rules
Minimum amount to trigger withholding agent rules
Guidance in an executive decree (No. 173 of 1 September 2021) concerns the threshold amount to trigger withholding of the tax on transfers of personal property and the provision of services (transferencia de bienes corporales muebles y la prestación de servicios—ITBMS).
Specifically, the threshold amount of domestic purchases of goods and services for purposes of triggering the ITBMS withholding agent rules is reduced to U.S. $3 million (from U.S. $5 million).
Read a September 2021 report (Spanish) prepared by the KPMG member firm in Panama
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