Panama: 5% Tax for Banking Services

Any services for which banks charge commissions will have to pay the ITBMS tax, also known as goods and services transference tax.

Monday, December 14, 2009

It will come into effect on January 1st, 2010, according to the last tax reform. reports: "Article 29 of the Law 49, September 2009, charges ITBMS to 'commissions charged for transferring securities, commissions generated in banking or financial services provided by legally authorized institutions, as well as commissions charged by entities engaging in brokerage activities'".

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NO to Financial Transaction Tax

September 2020

In Costa Rica, the Alvarado administration would be considering the creation of a tax on each transaction that a person or company makes through a financial entity, a tax that will discourage savings and motivate people to use cash.

In order to discuss a medium and long term credit with the International Monetary Fund, the Costa Rican authorities would be planning to design and create a new tax, which consists of each person paying a tax of ¢3 for every ¢1.000 in the transactions they make through a bank, finance company, mutual fund, stock exchange or any other financial entity.

Panama: ITBMS Retention Postponed

October 2015

A postponement has been made until January 1, 2016 of the entry into force of the measure which requires companies with annual purchases of goods and services worth over $10 million to retain 50% of the tax on transfer of movable property and services.

After the business sector asked for more time to implement the necessary changes to start withholding the tax, the Ministry of Finance decided to postpone entry into force of the measure until January 1.

El Salvador: Financial Transactions Tax Comes Into Effect

September 2014

Although the banks had sought to extend the term, starting September 1 entities must charge 0,25% on operations over $1000.

From September 1 banks, credit unions and savings and loans companies must withhold 0.25% for every transaction in made in cash, by check or electronically worth over $1,000.

Alarm in El Salvador Over Tax on Financial Transactions

May 2014

Warnings have been given that the tax in the approval process in the Legislature would create more evasion affecting all sectors of society.

The new tax would be of 0.25% on financial transactions exceeding $750, applied to the deposit holders who ordered payments or transfers and financial entities performing loan disbursements of any kind.