Panama Tax Registrations Explained
Updated 3 months ago
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This article walks you through Panama's ITBMS registration requirements, covering who needs to register, when, and how Kintsugi supports the process.
Who needs to register?
Registration is required for any person or entity supplying taxable goods or services in Panama, including:
Resident businesses
Non-resident businesses with a physical presence in Panama (such as a branch, office, or dependent agent)
Non-resident businesses with no physical presence in Panama that supply SaaS services remotely are not required to register for ITBMS/VAT.
Registration threshold
Registration becomes mandatory once your annual gross revenue exceeds B/. 36,000 (Panamanian Balboas), or your average monthly gross income exceeds B/. 3,000 in the prior year.
There is no voluntary registration option. You may only register once the threshold is met.
When does tax collection begin?
Tax collection begins from the date stated on your VAT registration certificate issued by the DGI.
Is there a forward-looking test?
No. Panama's threshold assessment is based on the previous year's revenue, not projected future revenue.
Do credit notes reduce the threshold calculation?
Yes. Credit notes and sales returns are deducted when calculating your annual revenue for threshold purposes.
Do inter-company transactions count toward the threshold?
Yes, if those transactions constitute taxable supplies between separate legal entities.
What about importers?
If your business imports goods into Panama, registration is required immediately and unconditionally, regardless of whether you have met the annual revenue threshold. Exporters are not required to register, but registration allows you to claim input VAT credits on your expenses.
Tax ID formats in Panama
Taxpayer Type | Tax ID Name | Format |
|---|---|---|
Panamanian legal entity | RUC (Registro Único de Contribuyentes) | Registration number + series + year of incorporation + DV (verification digit). Example format: 26631254-3-2020 DV: 78 |
Foreign person or entity | NT (Número Tributario) | Unique number assigned by the DGI to non-residents. Example format: 3-NT-3-33 DV: 45 |
Note: Actual RUC and NT numbers are assigned by the DGI and vary in length depending on the taxpayer type.
Filing frequency
All ITBMS-registered businesses (except professionals providing services) must file monthly, with returns and payments due by the 15th of the following month.
Professionals providing services (such as lawyers, accountants, consultants, and doctors) may qualify to file quarterly instead.
Nil returns are required even if there is no tax to report. If a filing deadline falls on a weekend or public holiday, it extends to the next working day.
How Kintsugi supports Panama registrations
Kintsugi allows you to:
Submit a new Panama registration request directly through the platform
Import an existing Panama registration
Monitor your nexus status to know when registration is required
Your account team will need to enable Panama for your organization before these features become available. Reach out to us if you are ready to get started.
Need Help?
For further concerns, we're always here to help. If you can't find the answer you're looking for, just reach out to us using the chat in the bottom right corner of your screen.
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