Taxation Capital: Gains the Sale of Stock & Securities

In the past, we have commented on the tax rules on the sale of stocks, bonds or participation shares issued by legal persons, and warn the danger of failing to pay the advance tax on capital gains established by Law 18 of June 19 of 2006.

Panama does not escape the rejection of the tax on the transfer or sale of securities issued by legal persons, in spite of the tax on the sale of such securities is reduced 10% of the capital gain.

While you must pay a deposit of 5% of the sale price, the resulting amount can be claimed as a unique and definitive tax, and if 5% is greater than 10% the taxpayer may request reimbursement of the surplus.

Right or wrong many persons assume the risk and dare not declare the transfer of securities considering those as private transactions that are not reviewed by the National Revenue Authority (ANIP).

The ANIP always has the right to review, and the obligation has a statute of limitations of 15 years. ANIP may apply the rules on the obligation to pay tax on these transactions, plus the surcharge and interest for late payment prescribed by law.

Long is the way and hard responsibility, because in case of default, the issuer is jointly and severally responsible for payment.