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February 1, 2023

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:


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


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