What taxes apply in the case of transfer of goods and services in Panama?
The tax, in this case, is the ITBMS, it is charged at 7% for goods and services. The companies that fall under this category of taxation are those with total sales of more than US $3,000.00 per month or US $36,000 annually.
This tax is commonly referred to in other jurisdictions as Value Added Tax (VAT). The same is seven percent (7%) and will cause the tax among others, the provision of all types of services by merchants, producers, industrialists, professionals, property lessors and service providers in general, excluding those of a personal nature Are provided in dependency relationship and those rendered to the State.
Are included in the concept of service provision, operations such as:
- The performance of works with or without delivery of materials
Intermediation in general
The use of personnel by the owner, partners, directors, legal representatives, dignitaries or shareholders of the company, of the services provided by the company
The lease of movable and immovable property or any other convention or act that implies or is intended to give the use or enjoyment of the property
The public shows, events, seminars, conferences, talks, presentations of artistic or musical groups, artists, singers, performers, professionals of the sport and professionals in general, not gratuitous, that are realized within the territory of the Republic of Panama.
Local and international passenger air transport