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KPMG Panama regularly publishes a Newsletter with Tax, Legal and Financial advise.  On the latest issue, they listed the tax changes made on Law 31, published in the official gazette No. 26757-A.

One of these changes is the inclusion of AMIR, a monthly advance to the income tax:

A change concerning the monthly advance of income tax (Adelanto mensual del impuesto sobre la renta – AMIR) for which there is an exclusion provided for individuals and companies with taxable income of B/$36,000 (approximately U.S. $36,000) or less per year, with remittances due within the first 20 days of the month

Continue reading KPMG Tax News

The Panamanian government has two goal that made them approve the newly tax information exchange agreement with the United States:

1. To help win U.S. approval for a long-stalled bilateral trade agreement.
2. To add to the others tax treaties and double taxation accords with other nations needed to secure Panama’s removal from an OECD list of tax havens, opening it up to investors who had avoided listed countries.

Besides these two reasons, we will see on the implementation of this international rules of information exchange between USA and Panama, the real implications, problems and benefits for both countries and their trade and investment incomes in the future.

Read the complete article at Reuters

The web page that the Panamanian Government uses to promote information to international investors (http://www.meetpanama.com.pa/) is very clear on “President Ricardo Martinelli’s pro-growth policy focus on long-term macroeconomic stability, fiscal discipline and continued infrastructure modernization is positioning Panama to deliver on the promise of even greater prosperity.”