24 March 2020 – Term of payment for taxes extended in the face of the Coronavirus pandemic

Type of Intervention: Executive Order, Financial and Economic
Sectors Involved: Private Sector and Businesses, natural and legal persons
Intervention Categories: Legal and policy; Regulatory change; Finance policy and financial aid; Stimulus packages and financial support
Level of Jurisdiction: National
Lead People/Agency: Internal Revenue Agency/Ministry of Economy

Overview: The Panamanian government extended the deadline for the payment of taxes by 120 days this year without any surcharge, fine or interest that must be met by individuals, companies and real estate.
The benefit includes “national taxes, direct or indirect, tariffs, special contributions, and any other debts of money, liquid and payable” that must be paid to the General Directorate of Income (DGI).
In addition, the term to file the sworn declaration of personal and business income has been extended until May 30, and is also authorized to declare the estimated tax to be paid “not less than 70 percent of the tax caused in the income tax returns of the fiscal period 2019 ”without being subject to any investigation or verification by the DGI.
Small and medium-sized companies will this year be exempt from paying income tax, among other facilities for taxpayers, except those that are under investigation for administrative tax evasion or criminal tax fraud.
Full details here: https://anpanama.com/9825-Gobierno-de-Panama-prorroga-por-120-dias-el-pago-de-impuestos-sin-recargos-y-multas.note.aspx

Type of Justification: Advice of INTERNAL government advisory committee or group, UN/UNDP
Source of Evidence or Justification: National – government, International – other
Evidence/Justification: Norms and provisions in force contained in the National Constitution, Cabinet Resolution No. 11 of March 13, 2020, by which a State of Emergency was decreed throughout the national territory.
The persistence of universal non-pharmacological interventions (NPIs), such as social distance that significantly reduces the supply of labor and restricts the ability to operate of a large part of the economy (tourism, entertainment, commerce), has significant costs for aggregate production. These measures could lead to a decline in gross domestic product greater than that of the Great Depression. All who temporarily lose their income they have to finance their fixed costs (for example, household consumption, wages in companies). This creates an unprecedented need for liquidity. If generalized NPIs continue, many companies are unlikely to sustain themselves and unemployment will soar. The best policy is
adopt more effective NPIs specifically aimed at people infected and protect those who have a greater probability of stressing hospital capacities. A comprehensive approach based on multilateral cooperation to contain the pandemic will achieve better results sooner.