Panama Individual Income Tax

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Panama Individual Income Tax

Here are the Panama Income Tax Rates:

• Individuals who earn less than $11,000 per year pay no income tax.

• Those earning between $11,000 and $50,000 pay a 15% Panama tax rate and

• Those earning $50,000 or more pay a 25% rate.

 

Various Panama Income Tax Deductions Include:

• Married couples are $800 with their joint tax return.

• Mortgage interest paid on the primary home can be deducted up to
$15,000 yearly.

• Student loans interest payments for the taxpayer’s or dependents’ education
in Panama is fully deductible.

• Health insurance premiums are deductible.

• Contributions to private pension plans not exceeding 10% of the
individual’s gross yearly income to a maximum of $15,000 yearly are deductible.

 

Foreign Residents: Foreigners who reside in Panama for more than 183 days per year and earn income in Panama will be taxed at the same rate as nationals.

 

Annual Returns: Individuals must file their annual income tax return before March 15th.  Individuals whose sole source of income is a single salary are exempt for having to file an income tax return as the employer withholds part of each payment for taxes.

 

Contact Us for all of your Panama Tax needs.

 

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