Law 189 of December 17, 2020 modifies the special income tax regime applicable to micro, small and medium-sized companies, businessmen and entrepreneurs through the articles:

• Article 699-A of the Tax Code for Legal Persons

As of the fiscal period 2020, the legal entity considered micro, small and medium-sized companies that are under the following circumstances:

• That are registered in the AMPYME Business Registry
• That your gross annual income does not exceed 500,000.00
• That its partners or shareholders are natural persons

They will pay income tax according to the following rates

Other benefits: Exemption from Complementary Tax

• Article 700-A of the Tax Code for Natural Persons

As of the 2020 fiscal period, the natural person considered a micro, small and medium entrepreneur who is under the following circumstances:

• That are registered in the AMPYME Business Registry

• That your gross annual income does not exceed 500,000.00

They will pay income tax according to the following rates:

We provide the registration service in AMPYME if you are a legal person and a natural person.

Contact us: asistencia@consultantspayrollpa.com

Executive Decree No. 147 of May 26, 2021 establishes the regulations for the adoption of the Electronic Invoice

The Electronic invoice is the fiscal document that supports the commercial operations between the seller and the buyer, which provides authenticity and integrity to its content.

Therefore, there are currently two alternatives to implement as of June 1, 2021, on a voluntary basis:

• Free Electronic Billing of SFEP through the DGI platform for natural and legal taxpayers up to 1,000,000.00 in annual billing.

• Electronic Invoice Mode that uses Qualified Authorization Providers (PAC), those legal taxpayers in general, with high billing volumes.

Therefore, for the implementation of both modalities, issuers of electronic invoices must meet the following requirements:

Free Electronic Invoicing:

• Have due exception for the use of Fiscal Equipment
• Be Registered in the Electronic Invoice System of Panama before the General Directorate of Income
• Report subsequent events related to the issuance of an electronic invoice.

Electronic Invoice through Qualified Authorization Providers (PAC):

• Have due exception for the use of Fiscal Equipment
• Have an electronic certificate issued by a certification service provider registered with the National Directorate of Electronic Signature of the Public Registry of Panama, with which you must sign your electronic documents.
• Be Registered in the Electronic Invoice System of Panama before the General Directorate of Income
• Issue the documents according to the specifications established in the Technical Sheet
• Contract the services of at least one qualified Authorization Provider (PAC) to obtain the Authorization and Use of your electronic documents.
• Report subsequent events related to the issuance of an electronic invoice.

Those who need Electronic Signature:

If required by legal taxpayers operating under the Electronic Invoice Mode through Suppliers (PAC)

Relationship between the current Fiscal Printer and Electronic Invoice:

Legal taxpayers may continue to operate with their Fiscal Printer or Fiscal Biller, only that this must be integrated with a transmission device that in turn generates electronic invoicing; These embeddable devices are currently in an admission process.

Dear Taxpayer, remember that until June 30, the deadline for the payment of the obligations generated by the 2020 income statement is met, avoid surcharges and interest by paying daily:

• Complementary Tax.
• 1st Item Estimated Income Tax.