Stamp Tax in Panama
In Panama, the Stamp Tax is used by people who want to record, modify or extinguish obligations, either wholly or partially in a document. This tax is better known as a documentary tax.
What documents require this tax
Commercial paper and documents require the stamp duty, such as contracts and other negotiable documents with no other tax obligations.
Stamp tax rates
The tax amount varies depending on the value of the document and its purpose. For example, the cost will be different for a landing permit, a boat loading bill, a cheque, or another document.
Documents used for administrative purposes such as certificates or notarized documents cost $8 per page.
Contracts and documents executed that are subject to the laws of the Republic of Panama are taxed a fee of US $0. 10 for each US $100. 00 of value.
All natural or legal persons who are obliged to pay the stamp duty may make the payment monthly, quarterly or half-yearly by means of an affidavit.
When you are exempt from paying
There are a number of situations exempt to pay this tax. This includes contracts that must be documented and that give rise to other types of taxes. For example, a construction contract does not pay stamp duty because it pays a transfer tax on movable property and supplies of services.
There are also other exceptions such as: documents that do not correspond to income from Panamanian sources, negotiable documents, purchase orders, plane tickets, money receipts, invoices for the sale of goods and services, and also legal actions.
The Kraemer & Kraemer team can assist you in identifying if your document requires stamp duty. We can also assist you with the process to pay any stamp duty responsibility. Contact our team of legal experts today.