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What is the relevant legislation relating to tax administration and controversies? Other than legislation, are there other binding rules for taxpayers and the tax authority?

The Panamanian Tax Code, approved by Law No. 8 of 27 January 1956, is the main source of tax legislation in Panama. Since its enactment, it has undergone a significant number of amendments, and supplementary legislation has been approved to regulate specific taxes and procedures. Tax legislation is enforced by the General Revenue Directorate of Panama (DGI).

Further to the Tax Code as amended and regulated, Panama also has a double taxation treaty (DTT) network and a tax information exchange agreement (TIEA) network. This incudes:

DTTs signed and ratified

In force

  • Barbados;
  • Czech Republic;
  • France;
  • Ireland;
  • Italy;
  • South Korea;
  • Luxembourg;
  • Mexico;
  • Netherlands;
  • Portugal;
  • Qatar;
  • Singapore;
  • Spain;
  • United Arab Emirates;
  • United Kingdom;
  • Israel; and
  • Vietnam.


It has negotiated DTTs with Austria, Bahrain and Belgium.

TIEAs signed and ratified:

In force

  • Canada;
  • Denmark;
  • Faroe Islands;
  • Finland;
  • United States;
  • Greenland;
  • Iceland;
  • Japan;
  • Norway; and
  • Sweden

It has negotiated a TIEA with Germany.

Taxpayers may submit to the DGI enquiries and specific applications, such as motions to obtain a benefit under a DTT, or other matters not involving controversy. However, responses and decisions made by the DGI will only apply to the specific request and are not binding for third parties.

Furthermore, Panama is also a party to a convention on mutual administrative assistance on tax matters. This allows the automatic exchange of information with countries with whom it agreed to the bilateral exchange of information and the new jurisdictions that agree to such exchange in the future.

Relevant authority

What is the relevant tax authority and how is it organised?

The DGI is a Directorate of the Ministry of Economics and Finances, and operates under a General Revenue Director.

The General Revenue Director is appointed by the executive branch of the government as the legal representative of the DGI. The General Revenue Director is empowered to:

  • issue general tax rules to regulate the relationship between the Treasury and the taxpayer;
  • absolve inquiries on non-binding tax matters; and
  • delegate certain powers or duties to other DGI officials.

The DGI is further organised into different national offices and sections under the supervision of the General Revenue Director, and into regional offices appointed for each province, as follows:

National offices

  • National Revenue Subdirectorate;
  • Directorate Consultants Office;
  • General Secretary;
  • Economic and Tax Studies Office;
  • Management Control and Planning Office;
  • Internal Control Office; and
  • Communications and Public Relations Office.

National sections

  • Organisational Management Section;
  • Legal Management Section;
  • Collection Management Section;
  • Management Control Section;
  • Regional Offices Section;
  • International Taxation Section;
  • Large Taxpayers Section; and
  • Information and Technology Section.

Regional offices

  • Panama Regional Tax Office;
  • West Panama Regional Tax Office;
  • Colon Regional Tax Office;
  • Chiriqui Regional Tax Office;
  • Cocle Regional Tax Office;
  • Bocas del Toro Regional Tax Office;
  • Los Santos Regional Tax Office;
  • Darien Regional Tax Office;
  • Herrera Regional Tax Office; and
  • Veraguas Regional Tax Office.

Sectional office

  • Aguadulce Sectional Tax Office.


Compliance with tax laws

How does the tax authority verify compliance with the tax laws and ensure timely payment of taxes? What is the typical procedure for the tax authority to review a tax return and how long does the review last?

The DGI verifies compliance with tax laws through general audits that cover all the taxes, fees, contributions and reports that the taxpayer is liable to submit or pay, or special audits that only include specific taxes, fees, contributions or reports that the taxpayer is liable to submit or pay.

The DGI ensures the timely payment of taxes by taxpayers applying fines, monthly interest and surcharges to each tax due. The surcharge will be of 10 per cent over the amount of tax due. The annual interest for 2016 is 9.5748 per cent.

The DGI has powers to directly order an audit process. An individual auditor or audit group is appointed to conduct the process, and a notice that details the general scope of the audit is issued for the appointed auditors to initiate contact with the taxpayer being audited.

The request and review of taxpayer information depends on the type and scope of the audit, since there is no statutory procedure for audits. Income tax return audits are usually the most extensive and, in such cases, the DGI can review:

  • the allocation of income and expenses;
  • the determination of deductible and non-deductible expenses;
  • invoices, accounting registries, agreements and any other documents related to income and expenses;
  • a comparison of the expenses and incomes registered in the income tax return of the clients and suppliers of the taxpayer; and
  • the application of tax incentives.

There is no specific time period for an audit. The duration of the audit may vary depending on whether it is a general or special audit, the number of auditors appointed by the DGI and the complexity of the taxpayer’s operations.

Types of taxpayer

Are different types of taxpayers subjected to different reporting requirements? Can they be subjected to different types of review?

Individuals and business entities are required to submit different tax reports, as described below.

The DGI may audit business entities or individuals and the law does not stipulate different processes based on the type of taxpayer. However, audits of individuals are uncommon.

Individual taxpayers

Individual taxpayers must submit income tax returns and VAT reports. Individuals must pay income tax in accordance with the following rates:


Taxable income

Tax rate

Up to US$11,000

0 per cent

Between US$11,000 and US$50,000

15 per cent

More than US$50,000

US$5,850 for the first US$50,000 and 25 per cent for income over US$50,000

Individuals who are registered on an employer’s payroll and do not generate income other than their salaries are not required to file income tax returns. Employers withhold and submit applicable individuals’ income tax to the DGI.

Individuals must pay VAT when transferring chattels or providing a service. The ordinary VAT rate is 7 per cent.

Individuals are not liable for VAT if, during the preceding year, they had an average monthly gross income not exceeding US$3,000 and an annual gross income not exceeding US$36,000.

Business entities

Business entities are required to submit income tax returns, indirect taxes reports, VAT reports and suppliers’ reports.

Business entities must pay VAT when transferring chattels or providing a service. The ordinary VAT rate is 7 per cent.

Business entities are not liable for VAT if, during the preceding year, they had an average monthly gross income not exceeding US$3,000 and an annual gross income not exceeding US$36,000.

Requesting information

What types of information may the tax authority request from taxpayers? Can the tax authority interview the taxpayer or the taxpayer’s employees? If so, are there any restrictions?

The DGI may ask taxpayers to provide the information necessary for it to:

  • determine tax obligations, sources of income, exemptions, costs, expenses and reserves related to taxes, including business books, accounting registries, records, financial information, invoices, inventories, copies of transactions documents and reports; and
  • comply with the exchange of information under a DTT or TIEA when the other contracting state requests foreseeably relevant information.

An information request or inquiry from the DGI may include interviews with a taxpayer’s employees or staff. The DGI may also require any public or private entity or third party to provide information that is necessary to review or determine tax obligations.

Information obtained by the DGI is classified, confidential and for the exclusive use of the DGI. Any information exchanged under a DTT or TIEA cannot be used by the DGI for purposes other than those provided for in the request and authorisation for its disclosure.

Available agency action

What actions may the agencies take if the taxpayer does not provide the required information?

The DGI may issue fines ranging from US$100 to US$5,000 to taxpayers who refuse to disclose books, records or documents necessary to verify the accuracy of the data supplied to the DGI, or to facilitate any investigation ordered by the competent fiscal officer relating to compliance with their tax obligations.

The DGI may issue fines (ranging from US$1,000 to US$5,000 for a first offence and from US$5,000 to US$10,000 for repeat offences) to public officials and individual taxpayers or business entities who do not submit, within a reasonable time, reports or documents of any kind relating to income tax.

When any of the above infractions occur, the DGI may apply recurrent and multiple fines until the taxpayers comply with its order or request.

Protecting commercial information

How may taxpayers protect commercial information, including business secrets or professional advice, from disclosure? Is the tax authority subject to any restrictions concerning what it can do with the information disclosed?

The protection of professional secrecy and private documents and information are constitutional rights in Panama. Therefore, private documents and information may only be disclosed if there is an order from a government authority that includes a specific information request that complies with applicable laws, as is the case with alimony and child-custody proceedings, cases where the state is a party, or in the case of agreements for the exchange of information.

The DGI may only request information necessary for determining tax obligations, sources of income, exemptions, costs, expenses and reserves related to taxes.

Any other information not related to tax obligations shall not be required by the DGI. The DGI and any DGI officials must maintain strict privacy of all tax returns and any ancillary or supporting documents and information, and of any documents or information obtained in the course of an audit.

Only the taxpayer, or a duly appointed agent of the taxpayer, may have access to documents and information received or obtained by the DGI.

Taxpayers have the right for information provided to the DGI to be kept confidential throughout the administrative and judicial procedures.

The DGI’s public officials are obliged to ensure and maintain the strict confidentiality of the information handled during the course of an audit or an administrative or judicial process. A breach of this obligation is considered a major offence sanctioned by dismissal from office, and the officials responsible may also be subject to criminal or civil liabilities.

Limitation period for reviews

What limitation period applies to the review of tax returns?

The limitation period for the review of tax returns depends on the statute of limitations for the applicable tax obligation, as follows:

Income tax - statute of limitations

General income tax

Statute of limitations period

Income tax

Statute of limitations period

Income tax return recalculation

7 years

Complementary tax

3 years

Withholding tax

Statute of limitations period

Dividend tax

15 years

Services rendered from abroad

15 years

Capital gains tax (shares)

15 years

Salary retentions

15 years


The statute of limitations for payment of general income tax is seven years. However, income tax return audits may only cover the three tax periods immediately prior to the reviewed tax returns and, therefore, no further recalculation of income tax returns can be ordered after three years.

Withholding tax includes any capital the taxpayer is due to retain or withhold on behalf of others, such as dividend tax over shareholders’ distributions, payment of services rendered from abroad, capital gains for share transfers and salary retentions.

For withholding tax, audits may be performed within the 15-year statute of limitations period.

Alternative dispute resolution

Describe any alternative dispute resolution (ADR) or settlement options available?

In Panama, there is no alternative dispute resolution process for tax controversies. However, defaulting taxpayers may settle a payment arrangement with the DGI for overdue tax payments. The DGI allows settlement agreements to include payment arrangements in monthly instalments.

Collecting overdue payments

How may the tax authority collect overdue tax payments following a tax review?

The DGI can directly apply existing tax credits to overdue tax payments. It may conduct administrative enforced collection processes for overdue tax payments and establish liens over any property or goods of the taxpayer to guarantee collection of overdue taxes. The value of the liens over property or goods may not exceed the overdue tax payments, surcharges, fines and interest.

As a result of these processes, the DGI may auction off any seized property to collect outstanding payments.

Administrative enforced collection processes will trigger an additional surcharge of 20 per cent over the taxes due.

However, taxpayers may reach settlements with the DGI to negotiate for additional surcharges to be partially or completely waived by the DGI.


In what circumstances may the tax authority impose penalties?

The DGI may impose penalties on taxpayers for:

  • late payment of due taxes;
  • contravening tax laws and regulations;
  • failing to submit withheld taxes; and
  • tax fraud.

Under the Tax Code, the DGI may apply the following penalties:

  • fines for specific contraventions detailed in the Tax Code;
  • surcharges in the case of withholding obligations;
  • interest payments on overdue tax payments; and
  • fines or imprisonment for tax fraud.

How are penalties calculated?

The DGI may impose fines that range from US$100 to US$5,000 depending on the specific infringement. The most common infringements and fines are detailed below:

Schedule of applicable tax fines



Failure to file income tax return

US$100 to US$1,000

Failure to maintain statutory accounting records

US$100 to US$500

Refusal to submit or provide required information in the course of an audit

US$100 to US$5,000

Failure to file supplier’s report

US$1,000 to US$5,000

What defences are available if penalties are imposed?

Taxpayers may, via an administrative review, challenge any resolution from the DGI ordering a penalty. Individual taxpayers and business entities must file any administrative review through a legal representative.

An affected taxpayer may request that the DGI correct fines that are levied by errors in the online tax payment system. In such cases, the DGI reviews the taxpayer’s correction request and may directly amend or eliminate any penalties that are not applicable.

Collecting interest

In what circumstances may the tax authority collect interest and how is it calculated?

Interest accrues on outstanding tax from the date when it should have been paid to the date when the taxpayer pays in full all the overdue tax.

The applicable interest rate is calculated monthly and corresponds to two percentage points above the benchmark rate, which is fixed annually by the Panamanian Bank Superintendent.

The interest rate was set at 0.7888 per cent in 2014, at 0.7973 per cent in 2015 and at 0.8048 per cent in 2016.

Criminal consequences

Are there criminal consequences that can arise as a result of a tax review? Are these different for different types of taxpayers?

The Criminal Code does not cover tax offences, such as circumvention, evasion and fraud. However, a taxpayer that is under review by the DGI can be subject to penalties if the authorities determine that there has been a tax violation or infringement.

Taxpayers involved in any tax violation or infringement are subject to fines, surcharges and interest payments. Although tax fraud is not considered a criminal offence under the Criminal Code, it is considered unlawful conduct under the Tax Code and can be punished with civil penalties in the form of monetary fines and criminal punishment in the form of imprisonment, which may range from one month to five years depending on the type of breach or violation. These consequences apply to all type of taxpayers, since the current legislation does not have different types of liabilities for each type of taxpayers.

Enforcement record

What is the recent enforcement record of the authorities?

According to the publication State of the Tax Administration in Latin America: 2006-2010, published in 2013 and prepared in association with the Inter-American Development Bank, the Technical Assistance Center for Central America, Panama and the Dominican Republic of the International Monetary Fund, and the Inter-American Center of Tax Administration, enforcement figures in Panama are as follows:


Taxpayer audit selection

Selection based on


Exchange of information

27.8 per cent

Taxpayer’s economic reality

10.1 per cent

Economic reports per section

0 per cent

Random criteria

10.4 per cent

Discretionary selection from auditors

4.6 per cent


47.1 per cent

Tax reviews

Invoicing control programmes

Massive compliance programmes

Field audits

Number of taxpayers verified

Verified/active taxpayers

Number of taxpayers verified

Verified/active taxpayers

Number of taxpayers verified

Verified/active taxpayers


0.1 per cent




0.2 per cent


Third parties and other authorities

Cooperation with other authorities

Can a tax authority involve or investigate third parties as part of the authority’s review of a taxpayer’s returns?

Third parties are not involved in tax return reviews or audit processes conducted by the DGI. However, the DGI may request information, and third parties or other government offices must collaborate with it and provide any information that it considers relevant to a specific review or audit process.

As mentioned in question 5, all information obtained by the DGI in the course of an audit process is classified and treated as confidential. Furthermore, taxpayers have the right to:

  • treatment with respect and consideration by DGI officers;
  • fair treatment as a taxpayer in good standing while no conclusive evidence proves otherwise;
  • require that the DGI’s actions do not severely affect the normal business of the taxpayer, as long as this does not affect the DGI’s right to audit and ensure tax collection;
  • receive assistance from advisers throughout any tax reviews and audits;
  • receive notice of any audit process that may affect the respective taxpayer and the identity of the officers in charge of the audit and their superiors;
  • access any audit reports that may affect such taxpayer;
  • classify information provided to the DGI as confidential, meaning it will remain private during the entire administrative and judicial procedure, except as otherwise expressly provided for by law;
  • not be audited twice for the same tax in the same period. Taxes where the taxpayer acts as a withholding agent are exempted from this right; and
  • have their electronic devices and equipment protected so that they are not seized during the audit process. The DGI may only obtain copies of relevant tax documents.

Does the tax authority cooperate with other authorities within the country? Does the tax authority cooperate with the tax authorities in other countries?

The tax authorities may collaborate on tax matters based on a negotiated, signed and ratified DTT or TIEA between Panama and another jurisdiction. See question 1 for a complete list of Panama’s DTTs and TIEAs.

To exchange tax information with foreign authorities, the tax authorities must follow the requirements and processes set forth under the applicable DTT or TIEA and Panamanian domestic exchange of information rules that regulate the exchange of information clauses included in DTTs and TIEAs.

When submitting an inquiry under a DTT or TIEA, the foreign tax authority must complete a request for tax information form that should include relevant taxpayer information and the tax inquiry. Although Panama does not have a general form for the request of information under DTTs or TIEAs, tailor-made forms have been agreed with Barbados, Mexico, Portugal and Spain under DTTs. For any other contracting states under DTTs or TIEAs with Panama, information may be requested through notes that must comply with the requirements of the respective DTT or TIEA.

Pursuant to domestic exchange of information rules, any request for tax information from a foreign tax authority of another contracting state must be foreseeably relevant. This means that the request must relate to a legitimate civil, administrative or criminal tax investigation conducted by the competent authorities of the requesting contracting state.

Once a form or note has been submitted by the competent foreign tax authority to the DGI, the International Taxation Section of the DGI will review it to confirm that it complies with any requisite formalities and is a bona fide tax inquiry and not a ‘fishing expedition’. If the International Taxation Section deems it appropriate, it will contact prospective local sources of the information sought by the foreign tax authority to ensure compliance with the request.

The domestic exchange of information rules do not specifically address or limit the scope of information that may be sought under a DTT or TIEA.

Special procedures

Voluntary disclosure and amnesties

Do any special procedures apply in cases of financial or other hardship, for example when a taxpayer is bankrupt?

No special tax procedures apply in cases of financial or other hardship, including bankruptcy and insolvency.

Due taxes have priority over other credits of the insolvent debtor.

Defaulting taxpayers may settle a payment arrangement with the DGI for overdue tax payments. The DGI allows payment arrangements to include monthly instalments.

Are there any voluntary disclosure or amnesty programmes?


Rights of taxpayers

Rules protecting taxpayers

What rules are in place to protect taxpayers?

See question 17.

Requesting information

How can taxpayers obtain information from the tax authority? What information can taxpayers request?

Taxpayers may obtain and review their own tax information through the DGI’s online system (e-tax software) or through a formal information request procedure.

The DGI’s online system contains all information regarding due taxes, paid taxes, payment dates, income tax return filings and other report filings.

Taxpayers may register in the DGI’s online system with their allocated single taxpayer registration number and access their information using the tax identification number (NIT). The NIT is an access key password to manage online transactions and services offered by the DGI. It is personal and non-transferable, and is accepted by the DGI as the taxpayer’s electronic signature under local tax legislation.

Taxpayers may also request or review their information from the DGI’s sections and offices. Each section and office has different request-for-information procedures. However, as a general practice, any request must be submitted in the form of a formal letter identifying the requested information and signed by the taxpayer or their legal representative.

Tax authority governance

Is the tax authority subject to non-judicial oversight?

The DGI is subject to the policy and guidance of the executive branch of the government and the supervision of the General Comptroller of the Republic of Panama.

Court actions (describe trial court actions in this section)

Competent courts

Which courts have jurisdiction to hear tax disputes?

Any act or resolution issued by the DGI may be contested through an internal administrative procedure. The administrative procedure has two stages: administrative review and administrative appeal before the Tax Administrative Tribunal (TAT). The TAT is an independent government entity of the executive branch of the government. The TAT is formed by three magistrates; two of the magistrates are attorneys and the other is an accountant.

An administrative procedure may also escalate into a judicial challenge before the Administrative Chamber of the Panamanian Supreme Court.

The decision issued by the Administrative Chamber is final, definitive and mandatory for the taxpayer and the DGI.

An administrative review may be filed before the officer of the DGI that issued the act or resolution, or the National Tax Administrator of the DGI if the case is for more than US$100,000.

An administrative appeal must be filed before the TAT’s General Secretariat.

A judicial challenge must be filed before the Administrative Chamber.

Lodging a claim

How can tax disputes be brought before the courts?

Taxpayers have the right to challenge any act or resolution issued by the DGI.

A taxpayer can file claims to challenge tax returns, additional assessments, fines and sanctions, acts or resolutions directly related to the determination of taxes and tax obligations, acts or resolutions that undermine the rights of the taxpayer, and acts, resolutions or procedures that violate tax regulations.

There are no threshold amounts for tax claims. The taxpayer may request that excess tax payments are returned, or that acts, resolutions or procedures that infringe the taxpayer’s rights and tax regulations are overturned.

As described in question 24, a tax dispute will begin with an administrative procedure and may escalate to a judicial challenge before the TAT. The taxpayer cannot file a judicial challenge before the TAT unless an administrative procedure has been completed.

According to the Tax Code, no stamp tax is required to submit an administrative review or administrative appeal, which must be issued on plain paper, be drafted respectfully and include the identification of the government entity to which it is addressed, clear statements of the claim, facts and applicable tax regulations, the date and place of the recourse, a signature and the address of the applicant.

According to the Judicial Code, a judicial challenge must include identification of the applicant, the legal representative and the process, a statement of the claim, the facts and principal omissions of the act or resolution, a list of the violated tax regulations and the concept of the violation.

Combination of claims

Can tax claims affecting multiple tax returns or taxpayers be brought together?

No, all claims regarding tax returns will be managed individually between each taxpayer and the DGI. The DGI can bring together reviews of different tax returns of one taxpayer.

Pre-claim payments

Must the taxpayer pay the amounts in dispute into court before bringing a claim?

The taxpayer is not required to pay the amounts in dispute before bringing an administrative procedure and a judicial challenge.

Cost recovery

To what extent can the costs of a dispute be recovered?

Neither the DGI nor the taxpayer may recover costs over a dispute. However, if a case is resolved in favour of the DGI, the taxpayer will have to pay all the due amounts plus the interest generated during the process until full payment of said amount.

Third-party funding

Are there any restrictions on or rules relating to third-party funding or insurance for the costs of a tax dispute, including bringing a tax claim to court?

There are no rules regarding third-party funding or insurance for the cost of a tax dispute. However, said funding or insurance is not practised in Panama.

Court decision maker

Who is the decision maker in the court? Is a jury trial available to hear tax disputes?

At the administrative review stage, the decision maker is either the officer of the DGI that issued the act or resolution or the General Revenue Director of the DGI, if the case is for more than US$100,000.

At the administrative appeal stage, the decision maker is a TAT trial judge.

At the judicial challenge stage, the Administrative Chamber is composed of three magistrates. A judicial challenge of a tax matter is resolved by a simple majority vote.

No jury trial is available to hear tax disputes.

Time frames

What are the usual time frames for tax trials?

Although the time frame varies greatly in tax cases, the minimum time for obtaining a final decision in a tax trial is between two and five years.

The administrative procedure may take a minimum of one-to-three years. However, a judicial challenge of a tax case before the Administrative Chamber may take between four and five years or more.

Disclosure requirements

What are the requirements concerning disclosure or a duty to present information for trial?

The DGI has the authority to request and examine all documents and information or perform any investigations that are relevant and useful to determine the proper tax obligation of any taxpayer.

In any audit proceedings commenced by the DGI, administrative recourses within the DGI, or appeals thereof, the DGI and the taxpayer may submit as evidence documents, expert witness or third-party statements and affidavits, inspection reports, or any evidence that is relevant and reasonable, provided that is not specifically prohibited by law. Fax or copies of documents are acceptable, provided these are or can be authenticated.

Permitted evidence

What evidence is permitted in a tax trial?

In an administrative tax review, administrative appeal and judicial challenge, expert witness or third-party statements or affidavits are allowed as evidence. Parties may submit affidavits through sworn statements before a circuit judge or a notary public and, when admissible, they must be submitted along with the administrative review or administrative appeal request.

The DGI officer that ordered or issued the challenged action or resolution may require an extension of the testimony in an administrative review. In an administrative appeal, the TAT trial judge has the same powers.

Permitted representation

Who can represent taxpayers in a tax trial? Who represents the tax authority?

At all stages of a tax trial, a taxpayer shall be represented by a lawyer or a law firm, and the DGI will represent itself.

The DGI represents itself throughout the tax process including the judicial challenge stage. However, as part of the judicial challenge, the Administration’s Public Attorney Office, as part of the Public Prosecutor’s Department, must issue its opinion regarding the legality of the tax resolution that denied the administrative appeal.

Publicity of proceedings

Are tax trial proceedings public?

Tax trial proceedings are confidential. Only the taxpayer and the taxpayer’s representative, the DGI and the government officers responsible for the tax trial process have access to the documents of the tax trial. In an administrative claim, the Administration’s Public Attorney Office will also have access to the documents of the tax trial.

However, the final decision of the administrative appeal issued by the TAT will be published online by the TAT for further cases. References to the taxpayer’s identity will be eliminated from the published final decision.

The final decision by the Administrative Chamber will also be published on its website as a precedent for further cases. References to the taxpayer’s identity will not be eliminated from the published final decision.

Burden of proof

Who has the burden of proof in a tax trial?

The taxpayer.

Case management process

Describe the case management process for a tax trial.

Only lawyers or law firms may file administrative tax reviews, appeals and judicial challenges before local administrative and judicial authorities.

A request for an administrative review of an act or decision by the DGI may be submitted within 15 working days following the notification of a tax resolution issued by an officer or section of the DGI to the DGI officer that issued the act or resolution, or the General Revenue Director of the DGI if the case is for more than US$100,000.

If an administrative review is denied, the taxpayer may file for an administrative appeal before the TAT. An administrative appeal shall be submitted within 15 working days following the service notice date of the resolution that decided the administrative review.

Once an administrative appeal has been acknowledged by the TAT, the DGI will have five working days to submit a notice of opposition to the administrative appeal.

The TAT will proceed with the discovery process as described in question 32. After the discovery process, the TAT or the parties may require a hearing to allow for a better understanding of the case.

Following the discovery process (and the hearing, if applicable), the taxpayer and the General Revenue Director will both have five working days to submit written pleadings.

A decision issued by the TAT ends the administrative procedure, and may be subject to a judicial challenge before the Administrative Chamber. A judicial challenge shall be submitted to the Administrative Chamber within two months following the notification of the resolution that decided the administrative appeal.


Can a court decision be appealed? If so, on what basis?

In an administrative procedure, the taxpayer can appeal the administrative review through an administrative appeal before the TAT.

The TAT’s decision shall be issued within a period of two months following the submission of the administrative appeal. However, the term can be extended by two months if the evidence is submitted and under review by the TAT.

The TAT’s decision ends the administrative procedure and may only be challenged judicially before the Administrative Chamber. A judicial challenge before the Administrative Chamber must be filed within two months following the notification of the resolution that decided the administrative appeal.

The decision issued by the Administrative Chamber is final, definitive and mandatory for the taxpayer and the DGI. There is no term for the issuance of the decision.