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May 2, 2023

Panama's Tax Authority sets the penalty for failing to timely file withholding tax return Form 03

  • The Tax Authority has issued a resolution establishing fines to be assessed against employers that fail to timely submit withholding tax returns by filing the Form 03.
  • The penalty will apply to noncompliance that has occurred since 28 April 2022.

The Panamanian Tax Authority issued Resolution No. 201-3486 on 17 April 2023, instructing the Tax Information Systems Department to make the necessary adjustments to the informatic systems to establish a fine for failing to submit a withholding tax return, known as Form 03 (in Spanish, "Planilla 03").

The penalty for not timely filing Form 03 is as follows:

Employer's annual income (in Panamanian Balboa)


From B/. 0.01 and up to B/. 150,000.00

B/. 100.00

From B/. 150,000.01 and up to B/. 500,000.00

B/. 500.00

From B/. 500,000.01 onwards

B/. 1,000.00

The penalty for not timely filing Form 03 will be applied to noncompliance committed since Decree 20 of 28 April 2022 entered into force (i.e., 28 April 2022) and established a monthly filing requirement for the form.


For additional information with respect to this Alert, please contact the:

Ernst & Young Limited Corp., Panama City

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor