Ceasing your tax residency in Panama involves a series of legal steps to ensure that you are no longer considered a tax resident by the authorities. This guide will walk you through each step of the process, ensuring that you comply with the necessary legal requirements.
Step 1: Departure from Panama
You must physically leave Panama. Ensure that you keep records of your departure, such as flight tickets and exit stamps in your passport, as these will be necessary to prove the date you left the country.
Step 2: Notification to the Tax Authorities
Submit a formal letter to the Dirección General de Ingresos (DGI) notifying them of your departure and intention to cease tax residency. The letter should include your full name, tax identification number, and the date of your departure.
Step 3: Settlement of Outstanding Tax Obligations
Ensure that all your tax obligations are settled before your departure. This includes paying any outstanding taxes and filing any pending tax returns.
Step 4: Deregistration from the Electoral Register
If you are registered to vote in Panama, you must deregister from the electoral register. This is done at the Tribunal Electoral, where you will need to present your identification and proof of departure.
Step 5: Closure of Panamanian Bank Accounts
Close any bank accounts you hold in Panama. This will help in proving that you no longer have substantial ties to the country.
Step 6: Maintain Records
Keep all records related to your departure from Panama, including the notification letter to the DGI, final tax returns, and proof of closure of bank accounts. These documents may be required in the future to substantiate your cessation of tax residency.
Legal References
- Fiscal Code of Panama (Código Fiscal de Panamá)
- Decree Law No. 3 of 1985
- Law No. 8 of 2010
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