Panama: Withholding of sales tax (ITBMS) | KPMG | GLOBAL

Panama: Withholding of sales tax (ITBMS)

Panama: Withholding of sales tax (ITBMS)

New withholding mechanisms with respect to the sales tax in Panama are effective beginning 1 January 2016.


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The guidelines for the sales tax—Impuesto a las Transferencias de Bienes Corporales Muebles y la Prestacion de Servicios (ITBMS)—also include rules for withholding when services are provided by nonresident companies.

A list of withholding agents is to be published each tax year (no later than 15 December), and the guidelines provide rules for withholding agents to follow.


Read a December 2015 report (English) and (Spanish) [PDF 317 KB] prepared by the KPMG member firm in Panama: New ITBMS withholding mechanism

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