What is the provision made to file an Income Tax Rectification after I have just filed my Income Tax?
A period of 36 months is permitted to file income tax after the due date. This will allow sufficient time for rectification only when the taxpayer is not being audited.
Gross income is the total, without deducting any amount, of the income of the taxpayer in money, in kind or in securities, being therefore included in the total amount received by:
After computing the taxable income on which the Income Tax is to be paid, natural persons will be entitled to the following annual deductions:
The spouses, the sum of eight hundred balboas (B / .800.00), when submitting their declaration together.
For the purposes of this article, a spouse's partner is defined as one who is bound by marriage bond or one who has a married life in conditions of stability and uniqueness for at least five (5) consecutive years duly verified by the interested parties.
This marital life will be verified with the declarations of two (2) witnesses, under the gravity of oath.
The sums paid as interest for mortgage loans that have been or are destined exclusively for the acquisition, construction, construction or improvements of the main dwelling for the taxpayer's own use, provided that it is located in the Republic of Panama. This deduction may be made up to a maximum annual amount of Fifteen Thousand Balboas (B / .15, 000.00). If the property belongs to a number of taxpayers, the amount of interest may be apportioned between them up to the maximum fixed here.
Interest paid on loans intended exclusively for education within the national territory of the taxpayer or the persons he or she supports or educates, and those caused by loans granted by the Institute for Training and Exploitation of Human Resources (IFARHU).
Medical expenses incurred within the national territory by the taxpayer, provided they are duly proven. For the purposes of this Article, medical expenses are considered:
A. The primes for hospitalization and medical care insurance policies that cover the expenses mentioned in paragraph b) of this numeral;
B. Sums paid by the taxpayer for hospitalization, diagnosis, cure, prevention, relief or treatment of diseases, provided that such sums are not covered by insurance policies.
The amounts received for representation expenses will be subject to the withholding of Income Tax as detailed below:
- Up to B / .25, 000.00, 10%.
- Of more than B / .25, 000.00, they will pay B / .2, 500.00 for the first B / .25, 000.00 and a rate of 15% on the surplus.
The taxpayer who receives, in addition to the salary or salary, income from representation expenses, may file a sworn declaration of income for the purpose of practicing the tax deductions established in this Code, as well as the contributions to the pension funds established by Law 10 of 1993.
However, income from representation expenses is not cumulative to salary and other taxable income that does not correspond to representation expenses.