Accounting in Panama: standards, taxes and GoSoft
Accounting guide for Panama: General Directorate of Revenue (DGI), Ministry of Economy and Finance, ITBMS 7 %, accounting framework, books, e-invoicing, tax returns and how to set up GoSoft.
Key facts
| Item | Detail |
|---|---|
| Tax authority | General Directorate of Revenue (DGI), Ministry of Economy and Finance |
| Currency | PAB/USD · balboa and US dollar |
| Tax ID | RUC |
| Consumption tax | ITBMS · 7 % |
| Income tax | Corporate income tax of 25 %. |
| Fiscal year | Calendar year (January 1 to December 31). |
| E-invoicing | Panama Electronic Invoicing System (SFEP), phased in progressively. |
Accounting framework
IFRS, mandatory for companies.
Chart of accounts
There is no mandatory chart of accounts: the company defines it according to its framework. GoSoft ships a base chart you can adapt.
Financial statements
In Panama the four statements are presented with these names (GoSoft uses them in its reports and PDFs):
- Statement of financial position
- Income statement
- Statement of changes in equity
- Statement of cash flows
Mandatory books and records
Journal, General Ledger and Inventory and Balance book (or their electronic equivalents), with the supporting documents for every entry.
Periodic tax returns
ITBMS return (monthly or quarterly) and annual income tax return.
What you need to know
- General ITBMS 7 %; 10 % for alcoholic beverages and lodging, 15 % for tobacco products.
- Panama uses the US dollar as legal tender alongside the balboa.
Taxes and withholdings in GoSoft
These are the reference taxes and withholdings GoSoft loads for Panama. You adjust them in Taxes and withholdings (rate, minimum base and ledger account).
| Code | Name | Type | Applies to | Rate |
|---|---|---|---|---|
ITBMS7 | ITBMS 7% | VAT | sales and purchases | 7 % |
RET-ITBMS | ITBMS withholding (withholding agent) | VAT | payments to suppliers (withholding) | 50 % |
How to set up GoSoft for Panama
In My company, choose the country Panama and the currency PAB/USD.
When you log in again, GoSoft shows Updating the accounting setup for Panama: it codes the chart of accounts, loads the country's taxes and checks the settings. It happens only once.
In Chart of accounts → Options, review the coding and download the chart as a PDF for your accountant to approve.
In Financial reports → Taxes and withholdings, confirm the rates and choose the ledger account for each tax.
Record activity (manually or from the modules) and use Tax returns to prepare each period's drafts.
Rates and deadlines change. Before filing, confirm what is current at General Directorate of Revenue (DGI), Ministry of Economy and Finance and with your accountant.