Panama Provides Reduced Tax Rates for SMEs

Panama has published Law No. 189 of 17 December 2020, which provides for the introduction of reduced progressive income tax rates for companies and individuals qualifying as SMEs as proposed in July 2020. The final law, which is in line with the initial proposal, includes that the reduced progressive rates are available subject to the following conditions:

• The SME is registered as such before the authority;
• The SME's gross annual income does not exceed PAB 500,000; and
• The SME is composed o…