Newsletter:

Changes to the Municipal Agreement No. 40

15 January 2017

Municipal Agreement No. 283 of December 27, 2016 whereby changes to Article 2, numeral N°2.3 and article 3 of Agreement N°40 of April 19, 2011, modified through Agreement N°73 of July 26, 2011, Agreement N° 40 of April 24, 2012, Agreement 52 of May 29, 2013 and Agreement 64-A of July 6, 2012 have been made.

On December 28, 2016, by means of publication of Municipal Agreement N° 238 of December 27, 2016, in Official Gazette N°28186-C, rate increases to the appointed rates in the applicable Tax Charts 1 and 2 came into effect, applicable to commercial, industrial and profitable activities taxed by the Municipality of Panama; for licenses and permits, occupation or temporary use of Street and Sidewalks and for blueprint authentications. It also establishes the payment of a Rate of five dollars (USD $5.00) per page for any transaction made to the Management of Sites and Constructions.

Below, is a flow chart comparing Taxes before the effectiveness of this agreement and the new rate:

Chart No.1

 

Municipal Agreement No.40

Municipal Agreement No.283

 

 

 

 

Yearly Gross Incomes USD$

Monthly Tax USD$

Yearly Gross Incomes USD$

Monthly Tax USD$

 

First category

 

more than …

 

 

40,000,000.00

 

 

USD$2,000.00

First category

 

more than …

 

 

40,000,000.01

 

 

USD$2,250.00

 

From 32,000,000.01  to

 

40,000,000.00

 

USD$1,750.00

From 32,000,000.01  to

 

40,000,000.00

 

USD$2,000.00

 

From 24,000,000.01  to

 

32,000,000.00

 

USD$1,500.00

 From 24,000,000.01  to

 

32,000,000.00

 

USD$1,750.00

 

From 16,000,000.01 to

 

24,000,000.00

 

USD$1,250.00

From 16,000,000.01 to

 

24,000,000.00

 

USD$1,400.00

 

From12,000,000.01 to

 

16,000,000.00

 

USD$1,000.00

From12,000,000.01 to

 

16,000,000.00

 

USD$1,150.00

 

From 8,000,000.01   to

 

12,000,000.00

 

USD$900.00

From 8,000,000.01   to

 

12,000,000.00

 

USD$1,000.00

 

From 7,000,000.01   to

 

8,000,000.00

 

USD$800.00

From 7,000,000.01   to

 

8,000,000.00

 

USD$875.00

 

From 6,000,000.01  to

 

7,000,000.00

 

USD$700.00

From 6,000,000.01  to

 

7,000,000.00

 

USD$775.00

 

From 5,000,000. 01 to

 

6,000,000.00

 

USD$.600.00

From5,000,000. 01 to

 

6,000,000.00

 

USD$675.00

 

From 4,000,000.01   to

 

5,000,000.00

 

USD$500.00

From 4,000,000.01   to

 

5,000,000.00

 

USD$575.00

 

 

Chart No.1

 

Municipal Agreement No.40

Municipal Agreement No.283

 

Yearly Gross Incomes USD$

Monthly Tax USD$

Yearly Gross Incomes USD$

Monthly Tax USD$

 

Second category

 

 

Second category

 

 

 

 

From 3,500,000.01  to

 

 

4,000,000.00

 

 

USD$500.00

 

From 3,000,000.01  to

 

 

4,000,000.00

 

USD$475.00

 

From 3,000,000.01

To

 

3,500,000.00

 

USD$450.00

From 2,000,000.01

To

 

 

3,000,000.00

 

USD$375.00

 

From 2,500,000.01

To

 

3,000,000.00

 

USD$400.00

From 1,500,000.01

To

 

2,000,000.00

 

USD$275.00

 

From 2,000,000.01

To

 

2,500,000.00

 

USD$350.00

From 1.000,000.01

To

 

1,500,000.00

 

USD$225.00

 

From1,625,000.01

To

 

2,000,000.00

 

USD$300.00

 

 

 

 

From 1,250,000.01

To

 

1,625,000.00

 

USD$280.00

 

 

 

 

From 1.000,000.01

To

 

1,250,000.00

 

USD$250.00

 

 

 

                           
 

 

 

Chart No.1

Municipal Agreement No.40

Municipal Agreement No.283

Yearly Gross Incomes USD$

Monthly Tax USD$

Yearly Gross Incomes USD$

Monthly Tax USD$

Third category

 

 

Third category

 

 

 

From 925,000.01  to

 

 

1,000,000.00

 

 

USD$170.00

 

From 850,000.01  to

 

 

1,000,000.00

 

 

USD$150.00

From 850,000.01

To

 

925,000.00

 

USD$160.00

From 600,000.01

To

 

850,000.00

 

USD$125.00

From 725,000.01

To

 

850,000.00

 

USD$150.00

From 500,000.01

To

 

600,000.00

 

USD$100.00

From 600,000.01

To

 

725,000.00

 

USD$140.00

From 300,000.01

To

 

500,000.00

 

USD$75.00

From  525,000.01

To

 

600,000.00

 

USD$120.00

From 200,000.01

To

 

300,000.00

 

USD$50.00

From 450,000.01

To

 

525,000.00

 

USD$110.00

 

To…

 

200,000.00

 

USD$25.00

From 375,000.01

To

 

450,000.00

 

USD$90.00

 

 

 

From 300,000.01

To

 

375,000.00

 

USD$75.00

 

 

 

From 250,000.01

To

 

300,000.00

 

USD$60.00

 

 

 

From 200,000.01

To

 

250,000.00

 

USD$50.00

 

 

 

 

To…

 

200,000.00

 

USD$25.00

 

 

 

 

 

Chart No.2

Municipal Agreement No.40

Municipal Agreement No.283

Yearly Gross Incomes USD$

Monthly Tax USD$

Yearly Gross Incomes USD$

Monthly Tax USD$

First category

 

more than …

 

 

30,000,000.00

 

 

USD$2,000.00

First category

 

more than …

 

 

50,000,000.01

 

 

USD$2,500.00

From 24,000,000.01  to

 

30,000,000.00

 

USD$1,700.00

From 30,000,000.01  to

 

50,000,000.00

 

USD$2,200.00

From 18,000,000.01  to

 

24,000,000.00

 

USD$1,500.00

From 24,000,000.01  to

 

30,000,000.00

 

USD$1,850.00

From 12,000,000.01 to

 

18,000,000.00

 

USD$1,250.00

From 18,000,000.01 to

 

24,000,000.00

 

USD$1,650.00

From 9,000,000.01 to

 

12,000,000.00

 

USD$1,000.00

From 12,000,000.01 to

 

18,000,000.00

 

USD$1,400.00

From 6,000,000.01   to

 

9,000,000.00

 

USD$800.00

From 9,000,000.01   to

 

12,000,000.00

 

USD$1,150.00

From 5,000,000.01   to

 

6,000,000.00

 

USD$700.00

From 6,000,000.01   to

 

9,000,000.00

 

USD$950.00

From 4,000,000.01  to

 

5,000,000.00

 

USD$600.00

From 5,000,000.01  to

 

6,000,000.00

 

USD$850.00

From 2,000,000. 01 to

 

4,000,000.00

 

USD$500.00

From 4,000,000. 01 to

 

5,000,000.00

 

USD$750.00

 

 

 

From 3,000,000.01   to

 

4,000,000.00

 

USD$700.00

 

 

 

From 2,000,000.01   to

 

3,000,000.00

 

USD$650.00

 

 

Chart No.2

Municipal Agreement No.40

Municipal Agreement No.283

Yearly Gross Incomes USD$

Monthly Tax USD$

Yearly Gross Incomes USD$

Monthly Tax USD$

Second category

 

 

Second category

 

 

 

From 1,750,000.01  to

 

 

2,000,000.00

 

 

USD$500.00

 

From 1,500,000.01  to

 

 

2,000,000.00

 

USD$450.00

From 1,500,000.01

to

 

1,750,000.00

 

USD$450.00

From 1,000,000.01

to

 

1,500,000.00

 

USD$350.00

From 1,250,000.01

to

 

1,500,000.00

 

USD$400.00

From 750,000.01

to

 

1,000,000.00

 

USD$250.00

From 1,000,000.01

to

 

1,250,000.00

 

USD$350.00

From 500,000.01

to

 

750,000.00

 

USD$200.00

From  850,000.01

to

 

1,000,000.00

 

USD$275.00

 

 

 

From 750,000.01

to

 

850,000.00

 

USD$250.00

 

 

 

From 500,000.01

to

 

750,000.00

 

USD$200.00

 

 

 

 

 

 

Chart No.2

Municipal Agreement No.40

Municipal Agreement No.283

Yearly Gross Incomes USD$

Monthly Tax USD$

Yearly Gross Incomes USD$

Monthly Tax USD$

Third category

 

 

Second category

 

 

 

From 450,000.01  to

 

 

500,000.00

 

 

USD$190.00

 

From 400,000.01  to

 

500,000.00

 

USD$175.00

From 400,000.01

to

 

450,000.00

 

USD$175.00

From 300,000.01

to

 

400,000.00

 

USD$150.00

From 350,000.01

to

 

400,000.00

 

USD$165.00

From 250,000.01

to

 

300,000.00

 

USD$125.00

From 300,000.01

to

 

350,000.00

 

USD$150.00

From 200,000.01

to

 

250,000.00

 

USD$100.00

From  250,000.01

to

 

300,000.00

 

USD$135.00

From 150,000.01

to

 

200,000.00

 

USD$75.00

From 200,000.01

to

 

250,000.00

 

USD$125.00

From 100,000.01

to

 

150,000.00

 

USD$50.00

From 175,000.01

to

 

200,000.00

 

USD$110.00

From 80,000.01

to

 

100,000.00

 

USD$40.00

From 150,000.01

to

 

175,000.00

 

USD$100.00

From 60,000.01

to

 

80,000.00

 

USD$30.00

From 135,000.01

to

 

150,000.00

 

USD$90.00

From 40,000.01

to

 

60,000.00

 

USD$20.00

From 120,000.01

to

 

135,000.00

 

USD$75.00

 

To…

 

40,000.00

 

USD$10.00

From 110,000.01

to

 

120,000.00

 

USD$60.00

 

 

 

From 100,000.01

to

 

110,000.00

 

USD$50.00

 

 

 

From 90,000.01

to

 

100,000.00

 

USD$45.00

 

 

 

From 80,000.01

to

 

90,000.00

 

USD$40.00

 

 

 

From 70,000.01

to

 

80,000.00

 

USD$35.00

 

 

 

From 60,000.01

to

 

70,000.00

 

USD$30.00

 

 

 

From 50,000.01

to

 

60,000.00

 

USD$25.00

 

 

 

From 40,000.01

to

 

50,000.00

 

USD$20.00

 

 

 

 

To…

 

40,000.00

 

USD$10.00

 

 

 

 

 

In terms of licenses, these are the changes made to the Municipal Agreement No.283 of December 27, 2016, these are the changes:

                  Chart 79

Municipal Agreement No.40

Municipal Agreement No.283

Licenses and Permits

Licenses and Permits

Constructions and Additions to Buildings

USD$5.00

Constructions and Additions to Buildings

USD$50.00

Demolitions

USD$5.00

Demolitions

USD$25.00

 

 

Permit of use of temporary structures (cranes, forklifts, etc.)

 

USD$50.00

 

 

Sidewalk Use

USD$25.00

 

 

In terms of temporary use of sidewalks and streets it sets out:

Chart 82

Municipal Agreement No.40

Municipal Agreement No.283

Temporary Use of Sidewalks And Streets

Temporary Use of Sidewalks And Streets

The temporary use of streets and sidewalks for storage of materials and other activities, will result in the following charges:  

The temporary use of streets and sidewalks for storage of materials and other activities, will result in the following charges: 

For the use of streets and sidewalks for storage of construction materials or any other use authorized by the Municipality will be paid in advance per square meter: 

 

 

 

(Monthly tax)

 

USD$1.00

For the use of streets and sidewalks for storage of construction materials or any other use authorized by the Municipality will be paid in advance per square meter: 

 

 

 

(Monthly tax)

 

USD$10.00

       

Lastly, Chart 92 will be as follows:

Chart 92

Municipal Agreement No.40

Municipal Agreement No.283

 

Blueprint authentication, per page (when filing the blueprint).

 

 

 

USD$5.00

 

Blueprint authentication, per page (when filing the blueprint).

 

 

 

USD$10.00

       

*Any procedure made before the Management of Sites and Construction, will be subject to pay a fee of five dollars (USD$5.00) per page.