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March 22, 2018
2018-0627

Panama establishes new process for corporations obtaining a tax identification number

Corporations that as of today do not generate Panamanian-source income need to update their information in the Unique Registry of Taxpayers by categorizing themselves as type "B" corporations to avoid fines.

On March 9, 2018, Panama issued Resolution 201-1254 (the Resolution), which established a new process for corporations to register for the Unique Registry of Taxpayers with the Panamanian tax authority to obtain a taxpayer identification number. This process consists of identifying whether the corporation is one of the following types:

— Type A: Corporation that generates Panamanian-source income. In this case, the entity must file an annual income tax return with the Panamanian tax authority.

— Type B: Corporation that solely owns property that does not generate income, or corporation that generates exclusively foreign-source income. In this case, the entity will not be required to file an annual income tax return.

Corporations will need to update the category under which they fall in the Unique Registry of Taxpayers to determine their obligations with respect to income tax return filing. This procedural change does not affect the territorial tax system of Panama.

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Contact Information
For additional information concerning this Alert, please contact:
 
Ernst & Young Panama
• Rafael Sayagués+506 2208 9880;
• Luis Ocando+507 208 0144;
• Isabel Chiri+506 208 0112;
Latin American Business Center, New York
• Ana Mingramm(212) 773-9190;
• Enrique Perez Grovas(212) 773-1594;
• Pablo Wejcman(212) 773-5129;
Latin American Business Center, Europe
• Jose Padilla+44 20 7760 9253;
 

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