The Republic of Panama enacted Law Nº45 of 5 August 2009, which offers a moratorium or tax holiday until 31 December 2009 for all taxes due by 30 June 2009 to the National Treasury.  The moratorium includes the Annual Franchise Tax for Panamanian corporations and private interest foundations.

As of January 1, 2006, penalties for late payment of the Annual Franchise Tax are as follows:

-        Surcharge of US$50.00 for late payment

-        Penalty of US$300.00 for more than two years of non payment, plus the normal surcharges.

-        Deletion of the corporation or private interest foundation due to the non-payment of the annual franchise tax for ten (10) consecutive periods.

The enactment of Law Nº 45 of 2009 grants all corporations and private interest foundations the opportunity to cancel all amounts due to the National Treasury avoiding late payment surcharges and penalties.

If you need any additional information, please contact us at: limaco@limayasociados.com