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Updates on tax matters with the following topics of interest:


  • Changes in billing systems and migration to electronic billing.
  • Sales and Services Report 1027.
  • Form 03.
  • Payment of Municipal Taxes.



Through Executive Decree No. 770 of December 30, 2020, it was ordered that taxpayers who use fiscal equipment would have to adapt them with a communication device that meets the specifications of the General Directorate of Revenue (DGI).

At the same time, the DGI has offered as an alternative to the use of fiscal equipment, the adoption of the electronic invoicing system that can be carried out in two ways. Using the free billing system created by the DGI, if the taxpayer meets the conditions indicated below, or adopting electronic billing through a qualified authorized provider (PAC).

The electronic invoicing system remains voluntary, except for those new taxpayers who have registered their RUC as of January 1, 2022. In which case, it would be mandatory to use electronic invoicing.

Resolution No. 201-0251 of January 12, 2022 establishes the following parameters for all taxpayers, natural or legal persons, who wish to opt for the use of the free billing system.

Natural person Up to B/. 1,000,000.00 200
Legal person Up to B/. 1,000,000.00 200

Law No. 256 of November 26, 2021, modified article 12 of Law No. 76 of 1976, regarding activities exempted from the use of fiscal equipment.

The economic activities that remain exempt from the use of fiscal equipment, for which they can use equivalent documents endorsed by the DGI, are the following:

“1. The agricultural activity whose annual gross taxable income is less than Three Hundred Fifty Thousand Balboas (B/. 350,000.00).

2. The transfer of real estate and those movable assets that must be recorded or are recorded in public deeds.

3. The services provided under the dependency relationship in accordance with the Labor Code.

4. The natural or legal persons who carry out the activities of selling products or services through street vendors who do not use motor vehicles.

5. The activities of the associations of co-owners related to the collection of maintenance fees to comply with the Horizontal-Property Regime.

6. The activities of commission agents that correspond to reimbursable expenses, in which case they may be documented by means of non-tax receipts. The General Directorate of Revenue (DGI) will regulate this provision.

7. Non-profit entities, associations or unions in the country, provided that they are duly authorized to receive deductible donations by the General Directorate of Revenue (DGI).

8. Selective ground transportation services by land, meaning taxis. The Land Transit and Transportation Authority (ATTT) will issue the corresponding certificate.

9. Any other activity that due to its nature, in the opinion of the General Directorate of Revenue (DGI), should be exempt from the use of authorized fiscal equipment and electronic invoicing; however, the DGI may request information necessary to control the obligation to document its operations.”

The economic activities that are no longer exempted and, consequently, would have to use fiscal equipment with the DGI communication device or the electronic invoicing system, based on the calendar that the DGI will publish soon, are the following:

“1. Public passenger transport services, national or international, by land, air or sea, not excepted by this Law.

2. Oil derivative cargo transportation services.

3. The operations and services in general carried out by banks and other financial institutions, including financial leasing companies and investment funds, as well as the activities carried out by credit banking, fiduciary or financial institutions governed by special laws, cooperatives, savings institutions and funds, pension funds, retirement and social security funds, and savings and loan entities.

4. The operations carried out by the stock exchanges and products authorized to operate in Panama.

5. The exercises provided in the exercise of liberal, artisanal and artistic operations, independently or through civil societies.

6. The activity of leasing real estate under notarized contracts or registered with the Ministry of Housing and Territorial Planning carried out by natural or legal persons who manage their own assets without the intervention of third parties.

7. Private entities duly authorized by the Panama Maritime Authority to ensure compliance with construction, navigation, pollution prevention and safety standards for merchant ships, passenger transport, pleasure ships, vessels for scientific research, work, oil exploitation and drilling of international traffic, whether or not they are registered, in the Merchant Marine of Panama.

8. Hostels that have less than seven rooms.”


A new form called Report on Sales and Provision of Services is created by Resolution No. 201-10011 of October 20, 2021, modified by Resolution No. 201-0743 of February 3, 2022, applicable to those taxpayers who:

“…must submit a sworn income tax return and who have received gross income equal to or greater than One Million Balboas (B/.1,000,000.00) and/or possessed total assets on the same date for an amount equal to or greater than the Three Million Balboas (B/.3,000,000.00), in the fiscal period prior (annual) to the current one in which the form must be completed.

Excluded from submitting the report on sales of goods and services (Form 1027) are those who are not taxpayers of the ITBMS, as well as those taxpayers who, not being taxpayers of this tax, due to their operations, have settled the same for reasons other than the ordinary course of business.

Form 1027 is now available in E-tax 2.0.

The first report, corresponding to the month of January 2022, must be sent within the last business days of the month of February and so on each month. The banking, insurance and reinsurance business have an extension to July of this year.

Failure to submit this monthly report entails a fine of One Thousand Balboas (B/.1,000.00) to Five Thousand Balboas (B/.5,000.00), the first time, and with fines of Five Thousand Balboas (B/.5,000.00) to Ten One thousand Balboas (B/.10,000.00) in case of repeated offence.


Form 03 is a report that must be sent by each employer taxpayer who maintains an active form where he informs the DGI about his workers, wages earned and withholdings made for income tax, educational insurance and social security.

Form 03 was filed annually, in May of each year. However, through Executive Decree No. 186 of November 22, 2021, this obligation was modified to a monthly report, as of January 1, 2022, by which the taxpayer must submit within fifteen calendar days following the expiration of the previous month, the declaration-settlement of the sums withheld before the DGI. Said information must coincide with that corresponding to the total number of workers registered under their charge before the Social Security Fund (CSS).

Failure to submit this report entails fines of One Thousand Balboas (B/.1,000.00) to Five Thousand Balboas (B/.5,000.00), the first time, and with fines of Five Thousand Balboas (B/.5,000.00) to Ten One thousand Balboas (B/.10,000.00) in case of repeated offence. In addition, the respective Provincial Revenue Administration must order the closure of the establishment for 2 days, the first time, and up to 10 days in case of repeated offence. If non-compliance persists, the sanction of closing the establishment in question will be established for 15 days.

In the media, the DGI has commented that it is likely that the start date of the monthly report Form 03 will be extended, but this has not been formalized.


If you are a taxpayer of the Municipality of Panama, remember that you must file your annual income statement within the first quarter of the year.

Failure to comply with this obligation entails a fine of five hundred Balboas (B/.500.00).




For further information and guidance on the new tax matters, contact our Tax and Compliance team.