Bill 500.

Summary.

The bill establishes measures to strengthen the collection and oversight of the Tax on the Transfer of Movable Goods and Services (ITBMS). It would apply to persons liable for the tax under the Tax Code, payment service providers operating in the Republic of Panama, individual income taxpayers, and tax and consumer protection authorities. Its application preserves the invoicing obligations under Article 11 of Law 76 of December 22, 1976, fiscal provisions, and rules on consumer protection and the display of final prices. It defines electronic payment service providers and methods, individual taxpayers, the ITBMS tax gap, and the tax risk management system.

Payment service providers would have to submit monthly consolidated information to the Directorate General of Revenue on amounts processed for each taxpayer, identified by their Single Taxpayer Registry number (RUC) or another identifier prescribed by regulation. The report would identify the provider and recipient, state the monthly amount, and, when required, break it down by payment method. The Executive Branch would set the reporting formats and conditions. The information would be used exclusively for tax oversight, audits, and risk management, subject to tax confidentiality and personal data protection, with disclosure to third parties only where authorized by law.

The Directorate General of Revenue would reconcile amounts reported for taxable transactions with electronic payments processed. Where it finds significant discrepancies, unusual patterns, or indications of underreporting, it could initiate reviews and audits under the Tax Code. It would maintain a risk system based on criteria including economic activity, transaction volume, detected discrepancies, and compliance history. It could use statistical analysis and algorithms while respecting due process and the right to a defense. Selection through that system would not limit its other oversight powers.

The bill adds Article 1057-V-A to the Tax Code to grant individual income taxpayers an annual tax credit of up to 10% of the ITBMS paid on activities designated by the Executive Branch. It requires invoices or equivalent documents in the taxpayer’s name, showing tax identification and ITBMS separately, and recorded in the Directorate General of Revenue’s systems. The credit would not exceed 300 balboas (B/.300.00) per tax period; it could be applied only against income tax due and would not entitle the taxpayer to a cash refund. The Executive Branch could propose an adjustment to the National Assembly and would regulate the credit’s use and oversight.

The Directorate General of Revenue would provide channels for reporting failure to issue a tax invoice, charging ITBMS without an invoice, non-tax final receipts, and other invoicing practices associated with evasion. Reports could include supporting evidence. Regulations would provide for confidentiality and protection against retaliation. Where consumer rights are affected, the Directorate General of Revenue would refer the relevant information to the Consumer Protection and Competition Defense Authority (Autoridad de Protección al Consumidor y Defensa de la Competencia, ACODECO), whose action would be independent and complementary. The Ministry of Economy and Finance would conduct tax awareness campaigns; the Directorate General of Revenue would maintain the “Ask for Your Invoice” campaign, and businesses could be required to display visible notices.

The Ministry of Economy and Finance would submit an annual public report on the ITBMS tax gap to the National Assembly through its Economy and Finance Committee. The report would cover methodology, estimates, oversight measures, results, effects of the credit, and targets for the next 3 to 5 tax periods, subject to tax confidentiality and data protection. The Executive Branch would issue regulations for the law within 12 months. Payment reporting and the risk system would begin in the tax period following 12 months from promulgation; the credit would begin in the period following the entry into force of its regulations. The proposed law would take effect 6 months after promulgation, with provisions requiring regulations applying later. Its content concerns payment providers, businesses, consumers, and taxpayers.