On 19 October 2015, Panama published Executive Decree 493 in the Official Gazette. The decree enters into force on 1 November 2015 and introduces the requirement that taxpayers that have acquired goods or services of at least PAB 10 million in the previous year must act as withholding agents for value added tax (VAT) purposes. As withholding agents, they must withhold 50% of the VAT due as indicated in each invoice.
The decree also notes that credit and debit card companies are required to w…