Excise Tax in Panama


The Excise Tax – ISC for its spanish version, consists of an excise duty on the import of certain products, including alcoholic beverages, and all tobacco products, as well as the original transfer or sale of these products by local manufacturers. Essentially, it is a tax that must be paid by those people who use or consume products that are not among the basic necessities.

What products pay the ISC?

  • Cars with a CIF value greater than US $8000, but there are exceptions.
  • Engines of more than 150 cc, yachts, sailboats, boats, recreational or sports jet skis, boats and aircraft, whether for commercial or non-commercial use.
  • Jewellery
  • Firearms
  • Cable and satellite television services.
  • Mobile telephony services.
  • Alcoholic and non-alcoholic beverages.
  • Cigarettes.
  • Naphtha.

Other related questions

Is VAT included? No, there is no ITBMS (VAT) on the tax base.

Who are the taxpayers? Manufacturers and importers.

What is the payment process? The taxpayer must collect this tax and remit it to the National Treasury within 15 days of the filing date. In the case of imports, within three days of lodging the customs declaration.

How are ISC rates estimated? The CIF value plus import duties is the basis for this tax.

Contact us

Kraemer & Kraemer has extensive experience with Panama’s tax sector, do not hesitate to contact us to obtain prompt and professional assistance.