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

February 1, 2023
2023-5117

Panama’s Ministry of Economy and Finance extends term for implementation of electronic invoicing system

Through Executive Decree No. 3 issued on 20 January 2023, Panama’s Ministry of Economy and Finance grants an extension for the adoption of electronic invoicing mechanisms for several activities that were initially required to adopt one of the mechanisms available (“fiscal equipment” or the Panama’s Electronic Invoicing System) starting on 2 January 2023 and 1 February 2023.

According to the extension granted, the new terms are:

Activity

Date for the start of using “fiscal equipment” or Panama’s Electronic Invoicing System

Public international transportation of passengers by land, air, or sea, not excepted by Law, and public domestic transportation of passengers by air

1 March 2023

Operations and general services provided by banks and other financial institutions, including financial leasing companies, investment funds, lending bank institutions, trust or financial institutions governed by special laws, cooperatives, savings entities and funds, pension funds, retirement and social security funds, and loans and savings entities

In three phases:

30 April 2023 - Phase I

30 June 2023 - Phase II

31 August 2023 - Phase III

These phases and procedures will be regulated by the Ministry of Economy and Finance.

Operations performed by securities market of products authorized to operate in Panama

31 August 2023

Operations performed by the insurance sector

Operations performed by other unclassified financial entities

In addition, the adoption of invoicing methods for free trade zones and special regimes was also extended:

Free trade zones and special regimes

Date for the start of using “fiscal equipment” or Panama’s Electronic Invoicing System

  • Barú Free Zone

  • City of Knowledge

  • Free Zones

  • Oil Free Zone

  • Companies under the Multinational Headquarter Regime (in Spanish Sede de Empresas Multinacionales, SEM)

  • Panama-Pacifico Special Economic Zone (in Spanish AEEPP)

  • Colón Free Zone (in Spanish ZLC)

  • Multinational companies of manufacturing services (in Spanish Empresas Multinacionales para la prestación de servicios relacionados con la Manufactura, EMMA)

  • Any other existing or future free zone and special regime

30 June 2023

Since SEMs and EMMAs are exempt from the use of fiscal equipment, they must exclusively adopt Panama's Electronic Invoicing System as their invoicing method.

The effective date of the obligation for the implementation of invoicing methods for activities not listed here will be established in other regulations to be issue by the corresponding authorities.

The Executive Decree became effective from its publication in the Official Gazette on 23 January 2023.

_________________________________________

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

Ernst & Young Limited Corp., Panama City 

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

 
 

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 ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more