A recently passed tax moratorium law includes several changes related to public finances, the Canal contributions and even exemptions for agricultural, livestock and aquaculture.

The passage of the tax moratorium law brought changes that support the State not only in increase the level of debt to GDP, but also includes tax adjustments and the fact that “… in the event that contributions by the Panama Canal Authority (ACP) are less than the percentage specified in paragraph 2 of Article 3 of the Law of Panama Savings Fund, which is 3.5% of gross domestic product (GDP), which this year could reach 47.459 million, the difference would be paid with debt …. This means that the economic resources not provided by the ACP will be borne by the non-financial public sector (NFPS). ”

Another change is that “…Law 25 of October 28, 2014 amendment article 708 of the Tax Code leaving it reading: exempt from income tax are natural or legal persons engaged in agricultural and agro industrial activities that have annual gross incomes of under $350,000 …. It also incorporated Law 25 of October 28, 2014 which exempts from payment of property tax, farms engaged in agricultural activities whose property value does not exceed $350,000. “

Source: laestrella.com.pa