Extension of Moratorium in Panama


Dear Clients:

Law 208 of April 6, 2021 extends the moratorium in respect of payment of interests, surcharges and fines due to lack of payment of taxes of legal entities, natural persons and real estate. Payments made up to August 31st, 2021 are exempt of 85% of the interest, surcharges and fines.

The law allows the subscription of payment agreements up to August 31st, 2021 requiring payment of 25% of the taxes owed up to December 31st, 2020 provided that the balance is paid by December 31st, 2021.

The law also extends the deadline for submission of certain reports and declarations which should have been filed by January 31st, 2021 waiving 75% of the amount of the penalties provided that payment of the remaining 25% is made by December 31st, 2021.

Furthermore, the law provides that taxpayers may file pending declarations of improvements of constructions on real estate up to December 31st, 2021 without penalties.

The law grants a 10% discount on real estate taxes if these are fully paid during the first quarter of 2021 and a 5% discount on the estimated income tax for taxpayers which gross income is up to US$2,500,000 with respect to their tax declaration for 2020, provided that payments are made within the four months following enactment of the law.

Businesses which have been affected by the pandemic such as hotels, restaurants, movie theaters, travel agencies and others may estimate their income tax for 2021 at 50% of the amount of income tax resulting in the 2020 income tax declaration.


For further information please contact us at

mmarengo@pmalawyers.com

María de Lourdes Marengo


PATTON, MORENO & ASVAT