Panama introduces amnesty regime for social security contributions

Panama introduces amnesty regime for social security contributions

The Panamanian authorities published in the Official Gazette Law No. 215 of May 6, 2021, which provides for an amnesty regime for unpaid social security contributions. This innovation is a response to the COVID-19 pandemic and provides that taxpayers with unfulfilled social security obligations will not be required to pay late fees and penalties by March 31, 2021. This option is available if at least 50% of the due amount is paid within 24 months from the date of entry into force of the Law (May 6, 2021). This usually applies to all amounts due to the Panama Social Security Fund (Caja de Seguro Social). However, benefits will be lost if the employer violates the payment procedure in accordance with the regime.

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