Accounting records requirements (Panama) | The Law 52 of 2016, which establishes the obligation to keep accounting records requirements for certain legal entities, through Law 254 of November 11, 2021, introduced important amendments for legal entities that do not carry out operations that are perfected or consumed or have their effects within the Republic of Panama, as well as for legal entities that are exclusively engaged in holding assets, incorporating the obligation to keep accounting records and supporting documentation.
In order to clarify the main terms included in accordance with the provisions of this law, we will review the concepts of legal entities, accounting records requirements, and supporting documentation as follows:
Legal entities: Any corporation, limited liability entity, or of any other type, as well as a private interest foundation, constituted in accordance with the laws of the Republic of Panama.
Accounting Records Requirements: those that clearly and precisely indicate the operations of the legal entity, its assets, liabilities, and equity, as well as those that serve to determine the financial situation with reasonable accuracy at all times and allow the preparation of financial statements.
Supporting documentation: those that include contracts, invoices, receipts, and/or any other documentation necessary to support the transactions carried out by a legal entity.
Panama | Accounting records requirements
Having reviewed these concepts, the law establishes that the accounting records must be prepared as follows:
Through this law, the following details have also been modified:
The resident agent must submit an annual declaration to the Panama Tax Authority (DGI), including a list of the legal entities for which they provide resident agent services, those who have or have not complied with the requested information, and confirmation of whether the accounting records and supporting documentation are kept in any other place other than the resident agent office, inside or outside the Panamanian territory.
We remind you that the obligation to maintain accounting records and supporting documentation for legal entities that do not carry out operations that are perfected or consumed in the Republic of Panama was established through Law 52 of 2016; Therefore, the information must be provided in the established time if request by the resident agent.
PENALTIES (Accounting records requirements):
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