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

July 11, 2023

Panama adopts new classification system for income tax returns

  • Panama's new classification for income tax returns filed by individuals and legal entities is organized based on the general regime and by economic activity sectors.
  • The Tax Authority has adopted new tax forms to be filed by individuals and certain companies.

The Tax Authority has adopted (Resolution No. 201-4370 of 19 May 2023) new forms for the filing of income tax returns by individuals, whether salaried or non-salaried, as well as for legal entities, insurance companies, agricultural and livestock companies, banks and financial entities, hotels, the legal industry in general, real estate entities, mining entities, and the Panama multinational headquarters (MHQ) sector (Panama Pacifico and Free Trade Zone).


Nearly 16 years earlier, the Tax Authority had approved (Resolution No. 201-2969 of 15 August 2007) forms for the income tax returns of legal entities under regular or special regimes as well for individual salaried employees, independent professionals and merchants. However, these documents were not properly classified based on activities and regimes, limiting their control by the Tax Authority.

New returns

Besides adopting new forms for the income tax return, the 2023 Resolution establishes and clarifies that income tax returns filed for taxpayers with annual gross income exceeding Panamanian Balboa (B) 11,000 must be countersigned by a certified public accountant.

The new Resolution is effective from its enactment in the Official Gazette (i.e., 27 June 2023) for income tax returns for the 2022 fiscal year that have not yet been filed.


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

Ernst & Young Panama, S.A.

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