Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

May 2, 2023

Panama's Tax Authority sets the penalty for failing to timely file withholding tax return Form 03

  • The Tax Authority has issued a resolution establishing fines to be assessed against employers that fail to timely submit withholding tax returns by filing the Form 03.
  • The penalty will apply to noncompliance that has occurred since 28 April 2022.

The Panamanian Tax Authority issued Resolution No. 201-3486 on 17 April 2023, instructing the Tax Information Systems Department to make the necessary adjustments to the informatic systems to establish a fine for failing to submit a withholding tax return, known as Form 03 (in Spanish, "Planilla 03").

The penalty for not timely filing Form 03 is as follows:

Employer's annual income (in Panamanian Balboa)


From B/. 0.01 and up to B/. 150,000.00

B/. 100.00

From B/. 150,000.01 and up to B/. 500,000.00

B/. 500.00

From B/. 500,000.01 onwards

B/. 1,000.00

The penalty for not timely filing Form 03 will be applied to noncompliance committed since Decree 20 of 28 April 2022 entered into force (i.e., 28 April 2022) and established a monthly filing requirement for the form.


For additional information with respect to this Alert, please contact the:

Ernst & Young Limited Corp., Panama City

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor


The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2024, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more