Comments on ITBMS collection

September 15, 2021

As reported in the web portal “ANPanama”, the Tax on the ITBMS (Traslado de Bienes Materiales y Servicios – Transfer of Goods and Services) was the main driver of tax collections in August, which totaled US$439.16 million, according to the General Revenue Directorate of the MEF (Ministerio de Economía y Finanzas – Ministry of Economy and Finance (MEF).

1. Other collection variables

According to the portal’s report, during August, current revenues showed an increase of US$126.39 million, i.e., 40.41% against the same period of the year 2020. On the other hand, regarding the benefits of the Tax Amnesty, which ends on August 31, 2021, the director of the DGI stated that the amount collected amounts to US$176 million, in recovered delinquent revenues, for the benefit of 110,125 taxpayers and a tax saving of US$57.6 million.

2. Technical declarations

According to the director of the tax entity, the taxes that reflected the highest collection during the mentioned period are Tax on the ITBMS with US$44 million, Real Estate with US$34 million, Legal Entity with US$33 million.

In this regard, the head of the tax authority reminded taxpayers that Article 14 of Law 208 of Tax Amnesty remains in force, providing tax relief for those sectors of the tourism industry, travel agencies, construction, among others, which could still demonstrate that they are affected by the Covid-19 pandemic and request this payment arrangement that grants a period of 48 months condoning interest and surcharges up to 85%.

Source: ANPanamá 15/09/21