Panama published Executive Decree No. 3 of 20 January 2023 in Official Gazette No. 29706-B on 23 January 2023, which amends Executive Decree No. 25 of 27 June 2022. Executive Decree No. 25 established a schedule for different types of taxpayers/operations to comply with the requirements to issue invoices using authorized fiscal equipment or through the e-invoicing system, Sistema de Facturación Electrónica de Panamá (SFEP), as per Law No. 256 of 26 November 2021 (previous coverage).

Executive Decree No. 3 provides that the original deadline of 2 January 2023 is maintained for:

• Private entities authorized by the Panama Maritime Authority to guarantee compliance with construction, navigation, etc. regulations;
• Petroleum derivative cargo transportation services;
• Hostels with less than 7 rooms; and
• Leasing real estate under notarized contracts or registered with the Ministry of Housing, by natural or legal persons that manage their own assets.

However, the deadlines for the following have been extended:

• 1 March 2023 for:
  • International public passenger transport services by land, air, or sea; and
  • National public transport services by air;
• A three-phase approach starting 30 April 2023, 30 June 2023, and 31 August 2023 for operations and services carried out by banks and other financial institutions, including financial leasing companies and investment funds, as well as banking credit, trust, or financial institutions governed by special laws, cooperatives, savings fund institutions, pension funds, retirement and social security funds, and savings and loan entities; and
• 31 August 2023 for:
  • Operations carried out on the stock market;
  • Operations carried out by the Insurance sector; and
  • Operations carried out by other financial institutions not specified.

The Ministry of Economy and Finance will separately regulate the phases and procedures for banks and other financial institutions.

The invoice requirement must also be met from 30 June 2023 in respect of operations carried about by companies operating under the following regimes, which has been extended from 1 February 2023:

• Baru Free Zone (Zona Franca del Barú);
• City of Knowledge (Ciudad del Saber);
• Free Zones (Zonas Francas);
• Petroleum Free Zone (Zona Libre de Petróleo);
• Multinational Enterprises Headquarters Regime (Sede Empresas Multinacionales - SEM);
• Panama Pacifico Special Economic Zone (Área Económica Especial Panamá Pacifico - AEEPP);
• Colon Free Zone (Zona Libre de Colón - ZLC); and
• Multinational Company regime for the provision of services related to Manufacturing (Empresas Multinacionales para la prestación de servicios relacionados con la Manufactura - EMMA), which has been added to schedule.

With respect to the SEM and EMMA regimes, it is provided that invoicing through SFEP must be implemented considering that companies under these regimes are exempted from using authorized fiscal equipment. It is also provided that the invoicing requirements apply for any other special zones or regimes that exist or may be created in the future.