The Ministry of Finance has initiated a cadastral revaluation of properties that have never updated their value.
The Ministry of Economy and Finance (MEF) began the process of updating cadastral in various parts of the province of Panama, including the area of beach that stretches along the development centers, located from Punta Chame to Buenaventura, covering Pacific beach fronts and the Interamerican Highway, reports Panamaamerica.com.pa.
In addition to a return to the system of estimated income, modifications have also been made to preferred shares, private foundations, and import taxes.
A bill which will shortly be submitted by the Ministry of Economy and Finance (MEF) contains changes "related to Monthly Advance Income Tax (AMIR), preferred shares, the flat tax for private foundations and taxes on import of electronic equipment and related supplies", said the that head of the Directorate General of Revenue (DGI), Luis Cucalón, according to Capital.com.pa.
Given the failure of the monthly payment system, income tax payments will be made in three installments a year and will be calculated using estimates.
According to an article in Prensa.com "With this move the government recognizes the failure of an unwieldy mechanism and that has not generated the expected revenues. Tax consultant Osvaldo Lau said that ‘the aim was to improve cash flow, but the exercise failed, because the absolute value of tax revenues did not meet expectations. '"
Tax equipment that has been acquired and properly installed no later than April 30th, 2012 will be entitled to the recognition of tax credit by the Department of Revenue.
A statement from the Ministry of Economy and Finance reads:
TAX CREDIT UP TO 30TH APRIL
Tax equipment that has been acquired and properly installed no later than April 30th, 2012 will be entitled to the recognition of tax credit by the Department of Revenue.
Before April 2012 the country will negotiate double taxation agreements with the UAE and Hungary.
The announcement was made by the Minister of Economy and Finance, Frank de Lima, during the opening of the new ordinary session of the Legislature.
"The head of the Ministry of Economy and Finance stressed the importance of the ratification by the French legislature of the double taxation agreement with Panama signed last December and its departure from the "gray list " collated by the Organization for Economic Cooperation and Development (OECD). He said that the move by France means that later this month, when France makes its list of countries with uncooperative tax policies, Panama should be left out of this category", reported Prensa.com.
As a result, the mall will pay $2.2 million more in taxes.
The lot of the shopping complex is located in one of the most valuable areas of Panama City. It was originally valued at $13 million, but the Asset Management Department at the Ministry of Finance has reviewed the registry value of the lot and increased it to $231.2 million.
As a result, the mall will pay $2.3 million on the 1% property tax, as opposed to the previous $113,000.
Panamanian authorities have announced that the implementation of tax equipment in the province of Panama will be made gradually being completed by December 1.
A press release from the Ministry of Economy and Finance of Panama reads:
The implementation of fiscal equipment in the province of Panama will be made gradually, being completed by December 1, said Luis Cucalón, Director General of Revenue at the MEF, following the adoption in first debate on the draft law which amends some related tax measures in Law 76 of December 22, 1976 and Law 62 of October 15, 2010 by the Legislative Commission of Economy and Finance.
Companies whose distribution operations or sales are made through sales agents with assigned routes are excluded.
This exemption is valid until portable printers become available. The Internal Revenue Service will set the timeframe for their implementation. "However, the proviso is that the use of such equipment will not be required if the total daily turnover of each merchant is less than $300.
The Panamanian controlling body will assess a modification to the rules of mandatory use of fiscal printers from October 1, 2011.
The changes that the Ministry of Economy are analyzing would exempt the purchase of the specialized equipment to companies with annual revenues under $36,000.
"Likewise, in April they established that the companies in that range of billing don’t have to pay the monthly advance income tax (AMIR in Spanish).
Government revenue during January 2011 totaled $ 332.8 million, $ 37.6 million more than the same period of 2010.
Tax revenues reached $ 264.5 million, an increase of $ 52.5 million (24.8%) over January 2010.
Regarding indirect taxes, revenue was $ 169.5 million, a net increase of $ 52.8 million (45%) over the same month last year.
The highest growth compared to January 2010 was recorded in the Personal Property Tax and Services (ITBMS) and the selective consumption tax, said Finance Vice Minister Dulcidio De La Guardia.
On November 30th Panama will sign a tax agreement with the United States.
The signing is part of a strategy by the country to exclude Panama from the grey-list created by the Organization for Economic Cooperation and Development (OECD), informed the minister of Economy and Finance, Frank De Lima.
This is the tenth agreement signed by Panama in its strategy to defend international services and also meet the 12 treaties needed to be excluded from the grey list, said De Lima, and indicated as a benefit that, "Panama is getting the deductibility of conventions for American taxpayers, which will help further promote tourism in our country."
The country's tax revenue service (DGI) calculates that between $300 and $500 million worth of tax goes unpaid each year.
The deployment of new technologies is one of the ways the DGI is looking to improve tax collection.
"Luis Cucalón, DGI director, comments that the exact amount of sales tax (known as ITBMS in Panama) evasion going on is difficult to estimate but that is precisely the reason for requiring the use of cash registers with fiscal printing capability," reports Laestrella.com.pa.
The government will put out to tender a contract for appraising real estate in Punta Paitilla.
In order to update its real estate registry, the Ministry of Economy will hire companies to perform a massive number of appraisals in the metropolitan area. Some 12.000 lots will be evaluated.
“The discussion process was started with the participation of 10 interested companies”, reported Prensa.com, adding that the area of Paitilla was divided in 11 sections, and one company will appraise each.