PANAMA

On August 3, the National Assembly approved the return to first debate of Bill 229 which creates a simplified tax regime for Digital Intermediation or Commercialization Companies. The text had been approved on April 29 and was ready to be debated on the Assembly´s floor; however, it will now return to the Economy Committee for further debate and consultation with different sectors.

Also, the President of the Assembly, Crispiano Adames, met with influencer Mayer Mizrachi to discuss the regulation of digital platforms and particularly about Bill 229. On the occasion, the legislative authority indicated that “he is open to rethink the document with a view to strengthening it”. In this regard, he coordinated another meeting with Mayer so that he can provide his contributions to the regulation.

It should be recalled that the bill requires digital companies to pay Income Tax and applies the Tax on the Transfer of Material Goods and Services (ITBMS in Spanish) to the services or products marketed by these means. The latter must be withheld through the credit cards or means of payment used to contract them. The taxes apply to all acts of commerce through computer applications or online platforms, where the recipients of such goods and/or services are located in the territory of the Republic of Panama.