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Panama Tax Information

7% ITBMS

ITBMS is 7% (10% for alcohol/tobacco). No income tax on foreign income. RUC required.

Architect Services to Invoice

  • Schematic design
  • Design development
  • Construction documents
  • Permit drawings
  • Site planning
  • Interior architecture
  • Project management

Invoice Requirements in Panama

RUC number
DGI registration
Client RUC
Invoice number
ITBMS (7%)
Total in PAB/USD

Payment Terms

Phase-based billing. Percentage at each milestone. Retainer for ongoing projects.

Contado15 días30 díasCrédito

Payment Methods in Panama

Bank TransferBanco GeneralBanistmoCredit CardCash USD

Architect Invoice Tips

  • Reference project phases
  • Include deliverables per phase
  • Note reimbursable expenses
  • Document design changes
  • Track percentage complete

Frequently Asked Questions

What tax rate applies to architect invoices in Panama?

Panama has 7% ITBMS. ITBMS is 7% (10% for alcohol/tobacco). No income tax on foreign income. RUC required.

What payment methods are common for architects in Panama?

Common payment methods in Panama include: Bank Transfer, Banco General, Banistmo, Credit Card, Cash USD. Phase-based billing. Percentage at each milestone. Retainer for ongoing projects.

What should architect invoices include in Panama?

Your invoice should include: RUC number, DGI registration, Client RUC, Invoice number. For architect services specifically, also include: Schematic design, Design development, Construction documents.

How should architects bill for projects?

Percentage of construction cost, fixed fee by phase, or hourly. Phase-based is standard.

What about design changes?

Include scope of changes and bill as additional services beyond original scope.

What is Panama's ITBMS rate?

Panama applies 7% ITBMS on most goods and services. Higher rates for alcohol, tobacco, hotels. Exports exempt.