Because of the short time frame and costs required to make the change, businesses are asking for the enforcement of the obligation to withhold 50% Transfer Tax on Goods and Services to be postponed.

From a statement issued by the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP):

(Panama, October 26, 2015) The Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) expressed concern and has asked the Directorate General of Revenue (DGI) to extend the entry into force of the Tax on the Transfer of Goods and Services (ITBMS), scheduled from November 1, in order to clarify the mechanisms of retention agents.

“By extending the enforcement of Executive Decree No. 463 of October 14, 2015, the debate can be broadened and the private sector can adjust to this major change,” said Jorge Garcia Icaza, president in charge of the CCIAP after the meeting held today with the director of the DGI, Publio Cortés.