Education Insurance Tax in Panama
Overview
Understanding the corresponding legal deductions to payroll in Panama allows the employee to comprehensively value their work and appreciate their positive contribution to the country’s development. There are different types of contributions, and the education insurance tax is one of them. This tax contributes to the proper function and development of the country ‘ s public education system.
Percentages to be paid
Employers are required to retain 1.25 percent from an employee’s salary and add 1.50 percent on top of that.
Self-employed workers are required to pay the full 2.75 percent of their taxable income each year.
Who has to pay
Employers and employees are obliged to pay this tax. It also applies to taxpayers who are not residents of Panama but who provide services in the country.
Payment methods
This tax is paid monthly to the Social Insurance administration, along with social insurance contributions and income taxes.
Contact us
The Kraemer and Kraemer team has the knowledge and experience to answer your tax questions. Contact us for more information about the education insurance tax.