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Panama Tax Information

7% ITBMS

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

Consulting Services to Invoice

  • Strategy consulting
  • Management consulting
  • Advisory services
  • Workshop facilitation
  • Retainer arrangements
  • Project consulting

Invoice Requirements in Panama

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

Payment Terms

Net 30 is standard. Milestone payments for large engagements.

Contado15 días30 díasCrédito

Payment Methods in Panama

Bank TransferBanco GeneralBanistmoCredit CardCash USD

Consulting Invoice Tips

  • Include professional credentials
  • Break down phases clearly
  • Document deliverables
  • Consider value-based pricing
  • Reference engagement letter

Frequently Asked Questions

What tax rate applies to consulting 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 consultings in Panama?

Common payment methods in Panama include: Bank Transfer, Banco General, Banistmo, Credit Card, Cash USD. Net 30 is standard. Milestone payments for large engagements.

What should consulting invoices include in Panama?

Your invoice should include: RUC number, DGI registration, Client RUC, Invoice number. For consulting services specifically, also include: Strategy consulting, Management consulting, Advisory services.

How should consultants structure invoices?

Include engagement reference, billing period, hours or deliverables, expenses, and payment terms.

Should consultants charge for travel?

Yes, charge 50% of hourly rate for travel or include in project fee. State policy upfront.

What is Panama's ITBMS rate?

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