Law 337 of 2022

The Government of Panama enacted Law 337 of 2022 (the "law";), for the purpose of increasing the collection of taxes and duties.

The most salient points of the Law are:

• All corporations that, until December 31, 2023 are in arrears in the payment of franchise tax and that intend to dissolve the same before the Public Registry, are exempted from the payment of the franchise tax, except for the last period, as well as the waiver of the surcharges caused. The only payment that the corporation has to make is the last franchise tax and the marginal fine for reactivation. 
• The amnesty period regarding the payment of the franchise tax is extended until December 31, 2022.
• 100% of the total interest and surcharges of the franchise tax will be forgiven until December 31, 2022.
• Up to 60% of the value of the marginal fines applicable to corporations will be exonerated until December 31, 2022.