{"id":15579,"date":"2016-01-26T13:05:40","date_gmt":"2016-01-26T18:05:40","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=15579"},"modified":"2016-01-26T13:05:40","modified_gmt":"2016-01-26T18:05:40","slug":"panama-itbms-retention-comes-into-effect-on-february-1st","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/panama-itbms-retention-comes-into-effect-on-february-1st\/","title":{"rendered":"Panama: ITBMS Retention Comes Into Effect on February 1st"},"content":{"rendered":"<p><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2016\/01\/SalesTax-Blue.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-15581\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2016\/01\/SalesTax-Blue.jpg\" alt=\"SalesTax-Blue\" width=\"477\" height=\"477\" srcset=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2016\/01\/SalesTax-Blue.jpg 600w, https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2016\/01\/SalesTax-Blue-150x150.jpg 150w, https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2016\/01\/SalesTax-Blue-300x300.jpg 300w\" sizes=\"auto, (max-width: 477px) 100vw, 477px\" \/><\/a><\/p>\n<p>The arrangement involves withholding a portion of the tax on the transfer of movable goods and services, and is mandatory for companies that accept payments using credit and debit cards.<\/p>\n<p class=\"description\">Despite the private sector&#8217;s proposal in December to postpone it until June 2016 , the entry into force of the obligation to retain 50% by way of Transfer Tax on Goods and Services (<a class=\"hlink\" title=\"ITBMS\" href=\"http:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22ITBMS%22&amp;q2=mattersInCountry_es_le:%22Panama%22\">ITBMS<\/a>), the Directorate General of Revenue (DGI), informed <a class=\"hlink\" title=\"taxes\" href=\"http:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22taxes%22&amp;q2=mattersInCountry_es_le:%22Panama%22\">tax<\/a>payers that new withholding mechanisms for the tax on Transfer of Goods and Services (ITBMS), will come into effect from 1 February 2016, including <a class=\"hlink\" title=\"retention\" href=\"http:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22retention%22&amp;q2=mattersInCountry_es_le:%22Panama%22\">retention<\/a> by companies that handle credit and debit cards.<\/p>\n<p>From a statement issued by the <a class=\"hlink\" title=\"Ministry of Economy and Finance (Panam\u00e1)\" href=\"http:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22Ministry+of+Economy+and+Finance+%28Panam%C3%A1%29%22&amp;q2=mattersInCountry_es_le:%22Panama%22\">Ministry of Economy and Finance<\/a> (MEF):<\/p>\n<p>Before this date, all individuals, companies and businesses that are not subject to withholding ITBMS, because they carry out economic activities that are fully exempt from this tax and who are affiliated to a entity that handles debit and credit cards must get their &#8220;Certificate for Exemption of ITBMS Activities&#8221; and submit it to the entity in order to not be subject to the withholding procedure.<\/p>\n<p>These taxpayers &#8220;should visit the website of the DGI (dgi.mef.gob.pa) and get the &#8216;Certificate for Exemption of ITBMS Activities&#8217; and submit it to the Administrator of debit and credit of which they are affiliates, before February 1, 2016, so that they do not have to carry out ITBMS retention on sales of goods or services made by their customers who pay with debit and credit cards,&#8221; said the Director General Revenue, Publio Cort\u00e9s.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The arrangement involves withholding a portion of the tax on the transfer of movable goods and services, and<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-15579","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Panama: ITBMS Retention Comes Into Effect on February 1st - Blog and Newsletter<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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