Panamanian businesses with turnover of less than $36 thousand a year will have access to a tax credit for up to 100% of the value of the equipment.
The credit is for the purchase of a single piece of equipment whose price can not exceed $850.
With the new regulations to be included in the amendments to Bill 375, the General Directorate of Income is trying to alleviate the economic impact for micro businesses.
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.
Businesses reported taxable sales in July of $3.503 million, 18.6% higher than in the same period last year.
In the services industry, the increase is 10.4%, up from $1,134 million in July 2010 to $1.261 million in the same month of 2011, according to the Superintendency of Tax Administration (SAT).
An article in Elperiodico.com.gt's article notes: "Ruben Dario Narciso, consultant to the Association for Research and Social Studies (Asies), said the election could boost sales for some goods and services which will help boost the economy."
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.
Numerous outstanding issues remain regarding standards, short supply of some equipment, anticipated delays in software development and interconnection problems in B2B transactions.
A statement by the Panamanian Chamber of Commerce, Industries and Agriculture (CCIAP) announced it has requested “a phased implementation of the equipment, due to the complexity of its implementation.”
In order to stimulate consumption, the Government is giving back 8% of the tax on sales made by credit card or debit card.
The refund, which will take place automatically, applies to all purchases made with credit or debit cards for goods or services subject to sales tax.
Proceso Digital reported statements by Executive Directorate of Revenue (DEI in Spanish), Oswaldo José Guillén, who said, "when a person buys an item subject to the top 12% tax, a discount of 8% will be automatically applied. "
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).
Panamanian traders have requested an increase in the number of authorized companies to give them more options.
Two new companies have been authorized by the Internal Revenue Service (DGI), (Compulab, SAand Pos-Panama, SA) in addition to Fiscales de Panama, SA and The Factory HKA Panama, SA.
"According to the DGI, On 30 September all shops in the country must have a fiscal printer installed on its premises, which will verify that the ITBMS statement and the sales statement match." Explained an article in Prensa.com
In Costa Rica the tax authority (DGT) interpreted that internet access should pay sales taxes (13%).
This has caused negative reactions from many sectors, for example the Technology Chamber, headed by Fabio Masís, stated that “prices are expected to increase, with negative consequences on low income users”, and that this decision violates the Constitution.
The state loses about $ 2.202 million in taxes, equivalent to 5.8% of the GDP.
Weekly publication El Financiero analyzed the main reasons why taxpayers are failing to pay taxes, stressing the evasion of the sales and income taxes.
According to the study, fraud in these 2 types of taxes implies $ 1.988 million per year, about 5.2% of GDP, money which does not go to the National Treasury.
The head of Internal Revenue signaled September 30 as the deadline to implement the mandatory fiscal invoice printer.
In his statements, the director added: "On September 30, any store or business which has no fiscal printer will be closed."
The requirement to have these printers comes from the recent tax reform.
"With this device we can check whether the transfer tax declarations of personal property and services (ITBMS) and sales are consistent with what was reported", said the official to Prensa.com.
Tax reform requires businesses to have a fiscal printer and the government to return part of the purchase price of this equipment.
An estimated 58.000 businesses should implement the new system for recording sales. The amount the government could subsidize could reach $ 40 million.
Laestrella.com.pa details aspects of the equipment, "the machines must be capable of storing up to 1.825 records or keep the information for a period of up to 5 years. In addition, tax reports and audit information contained in each fiscal printer must be protected and saved without access or the ability to be modified. The equipment will also contain an identification number and a DGI logo."
The closure of duty-free stores in land based customs, hotels and shopping centers is thought to be the reason for the rise.
In February 2010, the Honduran Tax Revenue Service board of directors suspended the contracts of tax-free shopping stores after receiving complaints that these businesses were often linked with the illegal trade in cigarettes and alcoholic beverages.