With regard to municipal taxes, it is worth noting that all municipalities in the Republic are authorized by law to create and collect taxes, fees and contributions that are established at the level of each district.
But basically we can detail three (3) that could impact the operation that is intended to do in Panama: the tax of label and propaganda, activity tax and road tax (plate). Let's see the most important characteristics of each one of them.
A. Label and Propaganda Tax.
The generating event of this tribute is the presentation to passersby of labels. The same is assessed by the municipal treasurer based on the size and location of the sign or label.
B. Activity Tax.
The tax on industrial and commercial gainful activities is also calculated by the municipal treasurer. Taking as criteria number of personnel, location, inventory, gross sales, commissions or operations. The same is taxed on a monthly basis based on the selected criteria, the range is between US $ 25.00 and US $ 2,000.00 as a cap.
C. Circulation Tax (Plate).
The circulation tax is based on the type of vehicle: motorcycle, private car, trailer, truck depending on the number of passengers and gross vehicle weight. It is settled on an annual basis and the minimum is US $ 1.00 to US $ 242.00 which corresponds to a crane of more than 24 metric tons gross vehicle weight.