Panama: “Extraordinary payment agreements” for tax obligations

A new administrative procedure through which tax obligations may be extinguished

A new administrative procedure through which tax obligations may be extinguished

A new administrative procedure through which tax obligations may be extinguished—referred to as “extraordinary payment agreements”—has been introduced.

  • The extraordinary payment agreement process can only be initiated at the request of the taxpayer, and regarding tax obligations that exceed PAB 50,000, and must be requested before 31 December 2022.
  • The general director of income (DGI) has 15 business days to issue its determination as to whether to accept the request submitted by the taxpayer.
  • If the request is accepted, then a date for a hearing(s) will be set by mutual agreement.
  • The administrative act that resolves the request must be issued within no more than 90 calendar days of notification of its acceptance.
  • If the DGI does not agree to the taxpayer's terms, the taxpayer may file an appeal before the Tribunal Tributario (TAT) within 15 business days from the notification of the DGI’s decision.

The extraordinary payment agreements process is intended to improve tax collection and provide fiscal assistance to taxpayers.

Read a November 2022 report [PDF 174 KB] prepared by the KPMG member firm in Panama 


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