DGI procedures and tax exemption applications in Panama

Review your tax position before filing

A debt, a pending exemption or a document needed for a sale requires the taxpayer and the status of the procedure to be identified. Preparation brings together RUC details, property or company information, account statements and correspondence. This distinguishes a correction of information from a payment obligation or an application for a tax benefit.

Tax exemptions and principal residence

Eligibility depends on the benefit requested and the history of the property and the taxpayer. Requirements, documentation and periods are reviewed before filing. An application does not automatically cancel previous balances or establish approval in advance. The guides explain exemptions, Family Tax Patrimony (Patrimonio Familiar Tributario) and Primary Residence (Vivienda Principal).

Property tax exemption for agricultural and livestock properties

Is your property used for agriculture or livestock farming, and do you need to review its property tax? At Quirós & Quirós, we examine whether it is appropriate to apply for the agricultural and livestock exemption, prepare its renewal or address review comments in an existing procedure.

The DGI’s directory requires evidence of the activity through a MIDA certification and technical report, identification of the property through registry certification and an ANATI certification of the area and cadastral value, which must not exceed B/.500,000. The owner’s identification and representation are also reviewed. The DGI may carry out an inspection.

Initial application, renewal and follow-up

The DGI states that the benefit is granted for five years and that an extension for another five may be requested. We review the earlier decision, its dates and the continuity of the activity to define the procedure. Filing an application does not amount to obtaining approval.

When is a lawyer involved?

An individual may submit the application directly or authorize a third party in accordance with the published requirements. For legal entities, the DGI provides for a power of attorney and an application through a legal representative, together with the company’s documentation. We specify the representation and formalities applicable to each case.

What we can handle for you

• Review of the property’s background, the activity and the account statement.
• Organization of the file and coordination of certifications and documents.
• Preparation and filing of the application included in the engagement.
• Follow-up on review comments and review of the decision and its application to the tax account.

The DGI procedure is listed as free of charge. Professional fees and the costs of certifications or other procedures are set out separately in the proposal. Its scope depends on the available documentation, the properties involved and the steps required.

To begin, share the property registration number, who owns it, what activity takes place and whether there is an earlier decision. Do not send e-Tax passwords through the consultation form.

DGI · requirements for individuals and legal entities, procedures 97 and 175 · DGI · duration and extension of the agricultural and livestock exemption

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Tax clearance certificates and property sales

A transfer requires coordination of the account statement, property documents and forms applicable to the seller. ITBI and ISR on the transaction each have their own treatment. Our guide to taxes on property sales uses examples and formulas to explain advance payments and how the applicable tax is determined.

Companies, professionals and other obligations

The annual company tax, tax returns and obligations arising from professional activity should not be treated as the same tax. The new guides distinguish companies from individuals, with examples of ISR, CAIR and ITBMS. The proposal defines the scope of legal work and accounting tasks, in coordination with the relevant professional.

Preparation, filing and follow-up

Kenia Rodríguez coordinates inquiries, documents and follow-up on procedures before the DGI to help clients prepare. The legal team becomes involved according to the issue requiring review. The engagement identifies the specific application, outstanding documents, costs and included actions; tax decisions rest with the authority.

Old debts and collection notices

An old debt requires a review of periods, actions taken and their possible effects on the limitation period. Counting the years since the balance first appeared is not enough. If you received a collection notice or a decision, provide the complete document and the date of receipt so the response and its deadlines can be assessed.