Panama’s Ministry of Economy and Finances issued Executive Decree 173 of 2021 amending Article 19 of Executive Decree 84 of 2005, which regulates the VAT. Specifically, the Executive Decree reduces the minimum amount of annual local purchases of goods and services a taxpayer must have to be considered as a VAT withholding agent to USD 3,000,000, from USD 5,000,000. Additionally, the tax authorities issued Resolution 201-7951 of 2021, which contains the list of new VAT withholding agents for tax year2022 and thereafter.
Source EY
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