The Income tax rates and personal allowances in Panama are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Panama Tax Calculator 2021.
| Tax Rate | Taxable Income Threshold | ||
|---|---|---|---|
| 0% | Income from $ 0.000.00 | to | $ 11,000.00 |
| 15% | Income from $ 11,000.01 | to | $ 50,000.00 |
| 25% | Income from $ 50,000.01 | and above | |
| Tax Rate | Taxable Income Threshold | ||
|---|---|---|---|
| 0% | Income from $ 0.000.00 | to | $ 11,000.00 |
| 15% | Income from $ 11,000.01 | to | $ 50,000.00 |
| 25% | Income from $ 50,000.01 | and above | |
Taxes, including personal income tax, expenses and limitations are reviewed by the Government in Panama periodically and typically updated each year. Not that not all tax rates and thresholds in Panama change annually, alterations to tax policy to support strategic economic growth in Panama mean that the certain areas may be focused on to provide specific tax relief in Panama or support growth in certain areas (overseas invstment in Panama for example may mean reduced non-resident income tax rates in Panama for a period).
When tax policy in Panama changes, the resultant tax tables also change. Tax tables in Panama are simply a list of the relevent tax rates, fixed amounts and / or threholds used in the computation of tax in Panama, the Panama tax tables also include specific notes and guidance on the validity of scenarios (for example, qualifying criterea for specific tax relief / allowances) and notes of the calculation of phaseout of specific tax elements within each taxation group (dividends and corporation tax thresholds in Panama for example).
Panama Tax Tables may also be referred to as Panama Tax Slabs, Panama personal allowances and tax thresholds or Panama business tax rates. They all refer to the tax tables, whether in whole or as specific sections/categories of the tax tables therein. In the section, we publish all 2021 tax rates and thresholds used within the 2021 Panama Salary Calculator. This means that if you are aware of a 2021 tax exemption or 2021 tax allowance in Panama that you are entitled too BUT it isn't listed here, that we don't allow for it in this version of the Panama Salary Calculator. This is simply because we updated our tax calculators based on user feedback, we tailor the Panama Salary Calculator to suit our users needs. Our aim is to keep tax calculations in Panama simple, we achieve this my making the Panama tax calculators relevent to our community's needs, this includes you. So, if you would like a new 2021 tax rates, allowance or threshold adding (or perhaps updating), or if you notice an error in our 2021 tax calculations, simply contact us and we will adjust the tool.
Choose a specific income tax year to see the Panama income tax rates and personal allowances used in the associated income tax calculator for the same tax year.