May 9, 2025
Limitless Team
If you have a company in Panama — whether it's a new company or a business that has been operating for years — keeping your tax obligations up to date isn't just good accounting practice, it's a legal necessity. However, many companies, especially smaller or newer ones, are unaware of what it means not to file their tax returns on time with the DGI Panama (Directorate General of Revenue), or they are not clear about the consequences that this could trigger.
Is it really that serious to omit a statement? What happens if you forget a form or if you submit it late? At first glance it may seem like a minor mistake, but in practice it can result in financial sanctions, blocking of operations and even the suspension of your Notice of Operation. This can become a real obstacle to the growth of your company — and, above all, to its legal and financial stability.
In this guide, we are going to explain to you in a clear and simple way what happens if you don't file your tax returns within the time stipulated by Panamanian law. We will also detail the most common consequences, such as tax fines, possible audits and even the impossibility of invoicing or closing contracts while your company has its “locked” status.
This isn't something to play with, but the good news is that, with a little planning and knowledge, you can avoid it without needing to become a tax expert. In the next sections, we'll show you the risks, but also the realistic solutions — such as supporting your accounting with legal or tax advice and take advantage of mechanisms such as tax moratorium in force in Panama for 2025.
Taking a few minutes today to understand how the tax reporting system works will help you not only avoid sanctions, but also protect your company's reputation and operability in the long term.
What happens if you don't file your tax returns in Panama?
In Panama, all companies — regardless of their size or business activity — are legally required to file regular tax returns with the DGI. These may include the income statement, ITBMS (Tax on the Transfer of Movable Tangible Property and Services), payment reports, and others. But what happens if you're just late or don't show up?
The first effect is usually an automatic notification by the DGI. The Panamanian tax system keeps a detailed record of obligations per taxpayer, and breaches are usually detected immediately. From there, the case can escalate in complexity if not addressed promptly.
Skip or delay your tax declarations can have consequences such as:
- Automatic generation of economic fines, even if your company had no movements during the period.
- Temporary suspension of the RUC or the Notice of Operation, which prevents legal billing.
- Bank restrictions or blockages in proceedings before other government institutions.
- Risk of being subject to a review or tax auditing on the part of the DGI.
A very common question for entrepreneurs is: “What happens if I don't file taxes in Panama even though I didn't have income?” The answer is clear: all companies are required to declare, even if they did not generate income or economic activity in a given period. In these cases, a declaration is filed at zero, but the procedure is still mandatory.
In addition, the dates to declare are clearly stipulated in the fiscal calendar, and many entrepreneurs or managers make the mistake of not writing down when each form is due. The result: they file late, accumulate penalties, or lose the right to certain exemptions or benefits.
Ignoring or leaving these processes for later may seem like a minor thing, but over the course of the year — and especially in major tax closures such as the one in 2025 — these oversights turn into real business headaches. Taking preventive measures is always cheaper than resolving an error in front of the DGI.
Fines, Blocks, and More: Common Legal Consequences
When a company fails to file its tax returns in Panama, it not only faces wake-up calls from the DGI: several sanctioning mechanisms are activated that can directly impact the operation of the business. Understanding these consequences is key to anticipating and avoiding major problems.
Penalties for filing late taxes in Panama
Las tax fines are the most immediate consequence. These apply for each form not submitted and may vary depending on the type of declaration and how many days of delay have elapsed. In many cases, fines start at $500 and increase progressively depending on how long you have not complied.
There are also default interests and surcharges that increase fiscal debt over time. Even if your company didn't generate revenue, omitting or delaying forms can result in automatic penalties.
Blocking operations and suspending the Notice of Operation
One of the most disruptive effects for a company is the possibility of keeping its Blocked operations. This occurs when the DGI or the integrated tax system detects a sustained non-compliance and decides to limit a company's legal capacity to issue invoices, carry out procedures or contract public services.
In addition, you can proceed to suspend the Notice of Operation, which is the essential document for operating legally in Panamanian territory. If the notice is suspended, your company cannot provide services or formally conclude contracts. This stops any activity, even if you have customers ready to buy.
Tax Audits and Investigations
Another significant risk is in the corrective actions that the DGI can take. If they detect that a company has repeatedly breached its tax obligations, they can start a tax auditing. This involves a detailed review of your accounting reports, bank movements and statements from previous years. In many cases, this results in additional fiscal adjustments and obligations that were not foreseen.
Summary of legal consequences for not filing taxes:
- Initial penalties for not reporting: starting at $500 per form.
- Cumulative surcharges and default interest.
- Suspension of the RUC or the Notice of Operation.
- Inability to invoice or make contracts.
- Withholding of proceedings before other entities.
- Start of a tax audit.
This is a landscape that can scale very quickly, especially if no action is taken as soon as the first notification arrives. Therefore, it is key to know not only the dates and forms to be completed, but also the mechanisms to get up to date — such as the tax moratorium or the search for tax advice specialized.
How to avoid penalties for tax delays in 2025?
Avoid penalties for filing late your tax declarations in Panama it's not as complicated as it seems. Many of the fines imposed by the DGI Panama they occur due to ignorance or lack of organization. The key is to understand your tax obligations and adopt basic control practices.
The first step is to know the deadlines. Most companies must file their annual income tax return before March 31, although it may vary depending on the tax regime. In addition, there are monthly statements such as ITBMS or purchase and sales reports.
If you don't submit these statements within the deadline, the system can automatically generate you tax fines from B/. 500.00 onwards, and you could even face a tax auditing Or the suspension of the Notice of Operation.
Best Practices for Preventing Tax Delays
Implementing a monthly tax monitoring routine can make a difference. Here are some practical steps for your company in Panama:
- Updated fiscal agenda: identify key presentation dates based on your type of company and keep a calendar visible and shared with your team.
- Digitize your records: Having organized documents makes it easier to prepare your returns.
- Hire internal or external resources: if you don't have permanent accounting staff, rely on specific suppliers to comply with your tax reports.
- Review your shipments: never assume that a statement was processed correctly. Monitor accusations or notifications in the DGI e-Tax 2.0 system.
It is also advisable to avoid common mistakes when filing taxes in Panama, such as placing incorrect numbers, omitting invoices or submitting inadequate forms. These oversights generate automatic alerts that can lead to temporary inspections or suspensions.
Therefore, anticipating the close of the next fiscal year and starting a compliance strategy now is essential so as not to compromise the operation or reputation of your company.
And if for any reason you had delays in previous fiscal years, there are options to regularize your situation, such as tax moratorium for 2025, which we will talk about later.
Advantages of having tax advice in Panama
Count on tax consultancy in Panama should not be seen as an expense, but rather as an investment in peace of mind and legal compliance. For many companies — especially those that are starting out or those with more complex structures — a tax advisor can make the difference between operating safely and accumulating silent sanctions.
Tax experts have a deep understanding of the Panamanian tax framework and of the changes that DGI Panama implements year after year. This allows them to identify tax savings opportunities, prevent errors when reporting and keep track of your tax obligations monthly or annual.
Key Benefits of Advising You Correctly
If you still have questions about hiring a tax support service, consider these practical advantages:
- Reducing risks: You minimize chances of receiving tax fines Or suffer Blocked operations for breaches.
- Time savings: you don't worry about tax processes and can focus your energy on growing your business.
- Strategic Compliance: your advisor can help you choose the best options depending on your type of activity, if you are a small, medium or special taxpayer.
- Audit support: If you are notified by a tax auditing, an advisor supports you with documentation, answers and follow-up before the DGI.
In addition, if your company has had accumulated delays or you want to regularize your situation without affecting your finances, an advisor can help you apply correctly to the tax moratorium of 2025. This type of support is especially useful for filing pending returns, avoiding surcharges and even negotiating installment payments in accordance with current regulations.
In regulated sectors, such as commerce, construction or professional services, tax precision is key to avoid interruptions in permits or contracts. That's why being backed by appropriate tax advice protects not only your income, but also your Notice of Operation and your reputation vis-a-vis suppliers or investors.
In the next section, we explain how this 2025 tax moratorium works, what requirements you must meet and how to use it responsibly to get up to date without burdening your cash flow.
Tax Moratorium 2025: How to apply it to your company?
La 2025 tax moratorium in Panama represents an excellent opportunity for companies to regulate their tax obligations without the immediate fear of sanctions or blockades. If your company has had delays in its tax declarations, you are still in time to correct the situation and avoid major consequences such as tax fines, suspensions of the Notice of Operation or even a tax auditing On the part of the DGI Panama.
The moratorium is a temporary tax relief authorized by Panamanian authorities that is usually applied in certain periods, especially after difficult economic events. For 2025, a new moratorium period has been established applicable to certain taxpayers — including companies in Panama— who have not filed returns or who have outstanding balances with the Directorate General of Revenue.
What does the 2025 tax moratorium cover?
The specific conditions may vary depending on the decree that establishes them, but in general a moratorium can include:
- Elimination or reduction of interest and surcharges for late returns.
- Total or partial exemption from tax fines applied by default or by default.
- The possibility of pay in installments without additional sanctions.
- Reinstatement of the Notice of Operation once the debt is normalized.
Requirements to access the moratorium
To benefit from the Tax moratorium for companies in 2025, the most important thing is to act within the period set by the DGI. Generally, you'll need to:
1. Be registered as a formal taxpayer.
2. Present the tax declarations earrings.
3. Formally apply for admission to the moratorium within the stipulated deadline.
4. Make the full or partial payment according to the established modality (may include payment agreements).
It is key not to leave it until the last minute, since omitting this process can lead to the maintenance of sanctions or the continuity of the tax blockade.
What benefits do you get as a company?
Taking advantage of the moratorium not only mitigates the financial impact of DGI sanctions for not declaring taxes, but it also allows you to unlock your company and start operating again without legal obstacles. This can be a key step for:
- Regain the possibility of legally issuing invoices.
- Recontract with suppliers or participate in tenders
- Reactivate stopped bank accounts.
- Avoid tax audits for irregular behavior.
Specialized support to use the moratorium effectively
While the process may seem simple at first glance, many companies make common mistakes, such as using the wrong forms or submitting incomplete data. This could lead to the loss of the benefit or even lead to new sanctions.
Count on tax advice specialized is very useful to ensure that you comply with all requisites, correctly submit your forms to the DGI and properly calculate what you should cancel, so as not to cause problems in the future.
If your company has delays or questions about how file 2025 tax returns, taking advantage of the moratorium is an effective and legal way to start the new fiscal period on the right foot.
✍🏼 Take note...
Avoiding tax penalties in Panama doesn't have to be complicated. As we saw in this guide, when a company doesn't submit its Tax Declarations In Time, the Consequences Can Be Significant: From Purposes And Blockages Until the Suspension of Notice of Operation and inability to operate normally. However, with good organization, the support of Tax advice and taking advantage of available tools such as 2025 tax moratorium, it is possible to resolve outstanding situations without major consequences.
Now that you know the most common legal risks and how to prevent them, it's time to take action. Reviewing your current obligations, recording previous statements if necessary, and maintaining proactive control will be key to your Company in Panama be kept in compliance and free from blockages.
Does your company have overdue returns or do you want to make sure you don't fall into tax default in 2025? At Limitless Legal, we help you analyze your current situation, correctly present your obligations and take advantage of mechanisms such as the tax moratorium before it's too late. Schedule a consultation with our team and avoid surprises that affect your operation.