Law 254 of November 2021 on changes in the requirements of Accounting Records in Panama.
Modifications to the obligation of Accounting Records for Companies and Foundations in Panama.
This law deals with adaptations in terms of fiscal transparency and prevention of money laundering.
Summary:
Previously, the Corporations and Foundations of Panama, with operations or assets outside the country, had to have Accounting Records and supporting documents.
So what does this new Law suggest?
This new Law makes the process stricter.
Now legal entities once a year are required to send a copy to the Resident Agent (which is the lawyer or firm that plays the role of Agent of the Company or Foundation and is also the link between the Panamanian authorities and the client).
Is it mandatory to have Accounting Records in Panama?
Legal entities are required to have Accounting Records (even if they do not carry out operations that are consumed within Panama, as well as if they are only holders of assets within or outside of Panama).
Accounting records must be kept for 5 years, inside or outside of Panama in the offices of the Resident Agent.
The Support Documentation must be kept, because it can be requested by the competent authority at any time.
Important:
1. Legal entities that only have assets must: supply the value of their assets, supply the income they receive from those assets and supply the liabilities.
2. Legal entities that carry out acts of commerce must provide their major journal and one minor journal.
What fines does the Government of Panama establish in this regard?
- If the company fails to comply with its Accounting Records obligations, it causes a fine ranging between 5,000 and 1,000,000 dollars.
- The Resident Agent for the same reason as above is given fines ranging from 5,000 to 100,000 dollars.
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