Newsletter:

ITBMS Withholding Agents 2017 - Obligations of these Entities

01 January 2017

Introduction:

On September 5, 2016 the Department of Revenue issued Resolution No. 201-4050 of September 01, 2016 (G.O. No. 28110), whereby it publishes the list of ITBMS withholding agents, which will be effective for the 2017 tax period.

Large-scale Buyers

According to paragraph d) of Article 19 of Executive Decree N°84 of 2005, every year at latest by September 1, the new list of withholding agents must be published, which will be effective for the following tax period.

We wish to highlight that in the Resolution hereby, we list the companies in the category “Large-scale Buyers” considered as such by the Department of Revenue for carrying out purchases of goods and services on the previous tax year of equal to or more than ten million dollars ($10,000,000), not including imports.  

Obligations

File the ITBMS Withholding Affidavit through form N° 4331 and make the payment of the withholdings applied.

Withholding agents must issue certificates for the withholdings applied for the month when the withholding were made, to the suppliers or establishments who suffered the withholding, so they are able to document their tax credits to their ITBMS Affidavits.

All these obligations must be met within the fifteen (15) days of the following month when the withholdings where made.  

Minimum requirements of the ITBMS withholding certificates

ITBMS withholding certificates may be issued both by electronic or physical means, with the Company logo, however the following information must be included:

  1. Name or business name of the taxpayer (supplier or service provider).
  2. Taxpayer Registry Number (RUC) and Check Digit.
  3. Period (month and year) when the withholding was made.
  4. Amount of the sales transaction or service delivery, basis for the ITBMS calculation.  
  5. The amount of the tax generated and the number of the tax withheld.
  6. Name or business name of the Withholding Agent (purchaser or user).
  7. Taxpayer Registry Number and Check Digit of the withholding agent.
  8. Date of preparation of the Certificate and person in charge of issuance.

 

Special Accountable Account

All withholding agents must create a special accountable account of liabilities called “ITBMS Withholding”, which will he handled as follows: 

  1. Credits: amounts withheld during the period.
  2. Debits: Payments to the tax authorities of the withholdings made during the period.  

¿When does ITBMS withholding not apply?

  1. When the transactions are made between withholding agents of the same category.  
  2. For purchases of up to five hundred dollars ($500.00) cash with petty cash charges.  
  3. Purchases made with the corporate credit card.

 

ITBMS WITHHOLDING AGENTS 2017

Below is the list of 163 withholding agents for the 2017 period, we have highlighted in said list the new withholding agents:

(*) Global Brands (Panamá), S.A. was added by Resolution N° 201-4175 of September 13, 2016 (G.O.28120 of September 19, 2016).