Qualified Authorization Provider (PAC) in Panama: Ultimate Guide to Electronic Invoicing

The Qualified Authorization Provider (PAC) in Panama plays a vital role in the electronic invoicing ecosystem. As outlined in Resolution No. 201-0295, a PAC is an entity authorized by the General Directorate of Revenue (DGI) to validate, certify, and transmit electronic invoices issued by individuals and businesses.

PACs act as intermediaries between invoice issuers and the DGI, ensuring that all transactions adhere to the technical and legal standards set by the government. This not only guarantees transparency but also enhances security in financial data transfer.

Why are PACs important?

• They certify the validity of electronic invoices.
• Offer advanced technical services to facilitate digital transformation.
• Ensure strict compliance with Panama’s fiscal and technical regulations.
• Provide solutions that optimize accounting and tax processes for businesses of all sizes.

Operating as a PAC in Panama requires meeting a series of conditions established by the DGI. These include legal, technical, financial, and administrative criteria designed to ensure a secure and reliable service. Below, we break down the main requirements:

1. Legal Requirements

• Be registered as a legal entity in Panama.
• Be up-to-date with all fiscal and legal obligations.
• Hold the necessary licenses and permits to conduct business.

2. Financial Requirements

• Demonstrate financial solvency through tax returns and strong banking references.
• Provide a compliance bond as required by insurers in Panama under current regulations.

3. Technical Requirements

• Possess robust technological infrastructure to securely and efficiently manage large volumes of data.
• Implement strong cybersecurity protocols to protect confidential information.
• Ensure fast response times and continuous service availability (24/7).

Registering as a Qualified Authorization Provider involves several key steps, all overseen by the General Directorate of Revenue (DGI). Below is a detailed overview of the process:

1. Initial Preparation

Ensure compliance with all preliminary requirements, from registering as a legal entity to setting up the necessary technological infrastructure.

2. Submission of Documents

The required documents include:

• Legal Documentation: Business registration certificates, notarized records, and commercial licenses.
• Financial Documentation: Audited financial statements, tax returns, and bank recommendation letters.
• Technical Documentation: Certifications proving technological capacity and cybersecurity measures.

3. Evaluation by the DGI

The DGI will assess compliance through detailed audits and verifications.

4. Approval and Authorization Issuance

If all criteria are met, the DGI will issue authorization, officially allowing you to operate as a PAC in Panama.

One of the most important financial requirements for PACs is the submission of a compliance bond. This requirement, overseen by a Panamanian insurance company, serves as a guarantee that the PAC will act in compliance with regulations and maintain quality service.

Key aspects of the performance bond

• Liquid collateral: The entity seeking authorization must guarantee sufficient funds to support the bond.
• Amount of the deposit: The amount is determined by the insurer and must be adjusted to the PAC's projected operations.
• Legal Responsibility: In the event of non-compliance, the bond protects customers and the DGI from possible losses or irregularities.

This component not only guarantees the seriousness of the service provided, but it also promotes trust both at the regulatory and business levels.

At Limitless Legal, we have a team of specialists in tax, commercial and technology law that will accompany you every step of the process to become a Qualified Authorization Provider (PAC). From preparing documentation to implementing technical requirements, we're here to ensure full compliance and success in your operation.

Our services include:

• Comprehensive legal advice to obtain your authorization.
• Preparation and review of all required documentation.
• Technical consulting to ensure the safety and efficiency of your technological infrastructure.
• Representation before the Directorate General of Revenue (DGI).

With our experience, you will have the peace of mind that your project meets all the standards necessary to operate as a PAC in Panama.