ITBMS (VAT)

About ITBMS (VAT)

This tax is commonly referred to in other jurisdictions as Value Added Tax (VAT). It is seven percent (7%) and will be included in, among others, the provision of all kinds of services by merchants, producers, industrialists, professionals, lessors of goods and service providers in general, excluding those of a personal nature that they are provided in a dependent relationship and those that lend to the State.

Such as:

  1. The realization of works with or without delivery of materials.
  2. Brokerage in general
  3. The use of personnel by the owner, partners, directors, legal representatives, dignitaries or shareholders of the company, of the services provided for this.
  4. The leasing of real and personal property or any other convention or act that implies or is intended to give the use or enjoyment of the good.
  5. Public shows, events, seminars, conferences, talks, presentations by artistic or musical groups, artists, singers, concert performers, sports professionals and professionals in general, not free, held within the territory of the Republic of Panama.
  6. Local and international passenger air transport.

The obligation to pay this tax arises in the provision of services, with any of the following acts, whichever occurs first:

  • The issuance of the corresponding invoice.
  • Termination of the service provided.
  • Perception of total or partial payment of the service to be provided.

The Kraemer and Kraemer team has the knowledge and experience to answer your tax questions. Contact us for more information on corporate taxes.

This tax is commonly referred to in other jurisdictions as Value Added Tax (VAT). It is seven percent (7%) and will be included in, among others, the provision of all kinds of services by merchants, producers, industrialists, professionals, lessors of goods and service providers in general, excluding those of a personal nature that they are provided in a dependent relationship and those that lend to the State.

Such as:

  1. The realization of works with or without delivery of materials.
  2. Brokerage in general.
  3. The use of personnel by the owner, partners, directors, legal representatives, dignitaries or shareholders of the company, of the services provided for this.
  4. The leasing of real and personal property or any other convention or act that implies or is intended to give the use or enjoyment of the good.
  5. Public shows, events, seminars, conferences, talks, presentations by artistic or musical groups, artists, singers, concert performers, sports professionals and professionals in general, not free, held within the territory of the Republic of Panama.
  6. Local and international passenger air transport.

The obligation to pay this tax arises in the provision of services, with any of the following acts, whichever occurs first:

  • The issuance of the corresponding invoice.
  • Termination of the service provided.
  • Perception of total or partial payment of the service to be provided.

The Kraemer and Kraemer team has the knowledge and experience to answer your tax questions. Contact us for more information on corporate taxes.

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