The effective date of withholding tax rules has been postponed. This measure applies for certain withholding agents that are designated by the tax authorities and that had transactions for the prior year that satisfied an annual threshold amount (U.S. $10 million).
Executive Decree No. 592 (24 December 2015) was published in the official gazette No. 27,935-A. This guidance provides that the list of withholding agents will be published annually by the tax authorities, no later than 1 September. The list of withholding agents that was published in November 2015 applies for 2016.
For 2017, those withholding agents already designated and that are again included in the list will have to continue to fulfill their withholding obligations, while those withholding agents that are excluded from the list will need to comply with their obligations until December of the tax year for which they were designated as withholding agents.
Read a January 2016 report (English) and (Spanish) prepared by the KPMG member firm in Panama: Effective date of withholding agents postponed
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