Panama Reduces Threshold for Designation as VAT Withholding Agent

Panama's Ministry of Finance recently issued Executive Decree No. 173, which amends the requirements for taxpayers to be designated as withholding agents for VAT (ITBMS) purposes. The main change is a reduction in the threshold for being designated as a VAT withholding agent from PAB (USD) 5 million in acquired goods or services in the previous year to PAB (USD) 3 million. As designated withholding agents, taxpayers must withhold 50% of the VAT (ITBMS) included in the invoices issued to them…