This past March 31st, the Ministry of Economy and Finance of the Republic of Panama issued Executive Decree No. 110 of 2021, by means of which it extends the deadline for the filing of income tax returns corresponding to the 2020 fiscal year.

Taxpayers will have until May 17, 2021 to file their returns before the Directorate General of Revenue, which is currently in the process of adopting the Income Tax return forms applicable to those taxpayers who qualify for the special Income Tax regime for micro, small and medium enterprises, included into the Fiscal Code by means of Law No. 189 of December 17, 2020.

Those taxpayers who qualify for said regime and have already filed their Income Tax returns for the 2020 period may file a rectifying return until May 17, 2021 without triggering the costs associated to such rectifying filings.