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panamajames
Joined 2012
Posts: 5096

10 years ago

Panama taxes world wide income

10 years ago

http://www.laestrella.com.pa/online/impreso/2013/12/31/cambian-regimen-del-codigo-fiscal-190962.asp

=========================================

Text of article from La Estrella (English translation follows):

2013-12-31 — 12:00:00 AM — PANAMÁ. La Gaceta Oficial publicó a primeras horas de la noche de ayer, una modificación al Código Fiscal, que en dos líneas transforma el sistema tributario nacional por completo.

Se trata de la Ley 120, publicada en la gaceta 27443-A. La ley modifica el artículo 694 del Código y que establece que será ‘renta gravable’, los ingresos provenientes de cualquier fuente dentro o fuera del territorio nacional. Es decir se adopta el régimen de renta mundial, en lugar de la renta territorial en vigencia hasta ayer y por los últimos 110 años.

Es una ley de 5 artículos que la Asamblea Nacional aprobó el 28 de diciembre pasado, en una maratónica jornada durante el final de las sesiones extraordinarias.

Lo más curioso es que el cambio entró a hurtadillas en un proyecto que discutía la creación de la zona franca del Barú y ‘otras disposiciones fiscales’, aunque no se especificaron en el título esas disposiciones adicionales, lo que algunos llaman un camarón legislativo del Día de los Inocentes transforman el escenario fiscal del país dramáticamente.

Incluso en el expediente legislativo que se publica en el sitio web de la Asamblea Nacional no aparece ni en primer ni segundo debate la propuesta. Tampoco se sabe quién la presentó, para modificar el artículo 694 del Código Fiscal.

El cambio implicaría trastornos en el régimen de sociedades anónimas en el país tema que durante este año fue objeto de un gran debate tras las presiones de organismos internacionales. En esa discusión no se logró un acuerdo.

Machine Translation:

2013-12-31 - 12:00:00 AM - PANAMA . The Official Gazette published the early hours of last night , an amendment to the Tax Code , in two lines transforms the national tax system altogether.

This is Law 120 , published in the Gazette 27443 -A . The law amends section 694 of the Code which provides that it is ' taxable income ' income from any source inside or outside the country. That is the system of worldwide income is adopted , instead of the ground rent in effect until yesterday and for the past 110 years.

It is a law of 5 items that the National Assembly adopted on 28 December last , in a marathon during the final day of the special session.

The strange thing is the change snuck in a project discussing the creation of the free trade zone of Baru and ' other tax arrangements ' , although these additional provisions not specified in the title, what some call a legislative Shrimp Day Fool transform the country tax scenario dramatically .

Even in the legislative record that is posted on the web site of the National Assembly the proposal does not appear in the first or second reading. It is not known who introduced it to amend Article 694 of the Tax Code.

The mean change in the regime disorders corporations in the country theme this year was the subject of much debate following pressure from international organizations. In this discussion an agreement was not reached .
__._,_.___

If the government of Panama tries to tax expats' home country retirement benefits, that "giant sucking sound" will be headed northward. Panama already has one of the highest property tax rates in the world (which a lot of people don't know about because they are still benefitting from exemption roulette) and now it wants to be one of the few countries that taxes worldwide income? A whole lot of folks will pack up and go back home. If it was a real estate buyers' market before, it will REALLY be one now!

===========================================Its not just expats. There are quite a few Panamanian who lived and worked in the USA for years and then returned to Panama to retire with a nice pension and/or social security from the USA. They are not going to be very happy about this. How about all those people coming here because of various publications like International Living?

======================================And this is why the government has been working so hard to get everyone
to be a "legal resident"? Now residents will also be taxed in Panama on
their worldwide income?=========================================================================================To know for a fact, one would have to read the tax code. I have seen mention of "pensions" as being taxable in Panama in several articles but they may be incorrect. If anyone reads the tax code on this, please share what you learned (and the code section).

Kovalenko & Vera Attorneys at Law in Panama

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