The president of Panama, Ricardo Martinelli has signed a bill to reform the Tax Code of Panama. Under this will be a number of measures to reduce the tax burden on companies that provided stability fiscal and simplified system of taxes and fees. In order to improve the competitiveness of Panama to the world market, the bill provides for the reduction of corporate tax rate from 30% to 25%, although the time frame in that happens is a decline, yet to be determined. However, the bill sets higher licensing fees for the banks who are residents of Panama. The size of this collection will vary from 75.000 U.S. dollars for banks, total assets exceeding $ 1 million, and will make $ 1 million for banks with assets whose value exceeds U.S. $ 2 billion.
The bill also changes the rate of sales tax from 5% to 7% and establishes a sales tax on landlines and mobile phones with prepaid. Under the bill bistros and restaurants, do not sell alcoholic beverages will be exempt from the obligation to pay sales tax. Goods for children will also be exempt from tax. In addition, for companies operating in the agricultural sector, the limit of tax exemption will be increased from 150.000 U.S. dollars to 250,000 dollars, and they will not need to lodge an income tax. In general, the bill modernizes the tax code and abolishes more than 30 taxes. Tax Code will also contain provisions to establish an administrative court which will hear complaints on tax matters. Provisions of the bill will take effect July 1, 2010.