by Alexander Mendoza of AE Accounting Advisors
Email: info@aeaccountingat.com
Website: www.aeaccountingat.com
When did Executive Decree No. 110 go into effect?
Since its promulgation on 31 March 2021 published in Official Gazette No. 29253-A.
What is the deadline for payment of taxes?
During the term of validity, a term of 47 calendar days counted as of the date of promulgation of this decree is granted for the payment of taxes that are caused or must be paid during said period and that are under the jurisdiction of the DGI, without this entailing the generation and payment of interest, surcharges and fines. The following is a detail of the terms granted for payment of such taxes:
What is the deadline for filing the income tax return - 2019 period?
What happens if I have already requested the extension that extends the deadline by one month before the DGI?
The extension of the one-month term to file the sworn income tax return established in Paragraph 5 of Article 710 of the Tax Code is hereby waived as a temporary measure, in view of the situation that prevailed during the first months of the year of total quarantine in several provinces of the national territory, as a result of the high rate of infection of COVID-19.
Can the filing of other tax compliance returns and/or reports be postponed?
Currently no, the extension of the deadline for filing and payment of tax without generating fines, interest or surcharges is only for income tax returns of individuals and legal entities.
Exceptions
This benefit applies only to individuals or legal entities that have regular fiscal periods.
Corrections
Taxpayers who have filed their income tax returns for the 2020 tax period and wish to avail themselves of the benefit established in Law 189 of December 17, 2020, may file a rectifying return until May 17, 2021, at no cost and without losing the possibility of rectifying or extending the income tax return under the terms set forth in paragraph 4 of Article 710 of the Tax Code.
Municipality of Panama
Regarding the Municipality of Panama, agreement N°60 of March 30, 2021 was enacted, which grants an extension for the presentation of the Annual Affidavit until May 31, 2021, without penalties.