Contractor Invoice Generator for Panama
Create professional contractor invoices for clients in Panama. This free invoice generator combines contractor-specific billing practices with Panama's tax requirements (7% ITBMS) and preferred payment methods like Bank Transfer and Banco General.
Free, no registration required. Your data stays in your browser.
Panama Tax Information
ITBMS is 7% (10% for alcohol/tobacco). No income tax on foreign income. RUC required.
Contractor Services to Invoice
- Labor charges
- Material costs
- Equipment rental
- Permit fees
- Subcontractor work
- Change orders
- Warranty work
Invoice Requirements in Panama
Payment Terms
Progress billing at milestones. Retain 5-10% until final inspection.
Payment Methods in Panama
Contractor Invoice Tips
- Break down materials and labor
- Reference permits
- Document change orders
- Include lien waiver language
- Track progress payments
Frequently Asked Questions
What tax rate applies to contractor 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 contractors in Panama?
Common payment methods in Panama include: Bank Transfer, Banco General, Banistmo, Credit Card, Cash USD. Progress billing at milestones. Retain 5-10% until final inspection.
What should contractor invoices include in Panama?
Your invoice should include: RUC number, DGI registration, Client RUC, Invoice number. For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.
How should contractors bill for projects?
Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.
How do contractors handle material markup?
15-25% markup is standard. State policy in contracts.
What is Panama's ITBMS rate?
Panama applies 7% ITBMS on most goods and services. Higher rates for alcohol, tobacco, hotels. Exports exempt.