On March 9, 2018, the Directorate General of Revenues (DGI for its Spanish acronym) of the Ministry of Economy and Finance issued new parameters for the registration and obtention of the tax identification number (Unique Taxpayer Registry-RUC), applicable to all corporations, including those that due to their activities do not generate taxable income or are not required to submit a sworn income tax return.
Thus, now the corporations will be differentiated depending on whether they earn or not Panamanian source income and must indicate at the time of registration, one of the following categories:
- Category "A": applicable to any corporation that has income from a Panamanian source, even if it is a minimum percentage. In this category it is obligatory to present a sworn income tax return as of the registration of the corporation, as well as a final return, upon its dissolution.
- Category "B": applicable to those corporations that are incorporated solely to own immovable property that will not generate income, as well as to those that do not operate any business in Panama; do not generate any income or whose income is 100% from foreign source. The corporations that fall in this category are not required to submit a sworn income tax return.
The above mentioned Resolution also establishes the mechanism to avoid fines for those companies that need to update their tax obligations because they will start to generate Panamanian source income and / or for those companies that have not indicated an applicable category (A or B).