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Panama Tax Information

7% ITBMS

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

Handyman Services to Invoice

  • General repairs
  • Furniture assembly
  • Drywall repair
  • Painting
  • Fixture installation
  • Deck repair
  • Door/window repair

Invoice Requirements in Panama

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

Payment Terms

Payment on completion. Larger jobs may require deposit.

Contado15 días30 díasCrédito

Payment Methods in Panama

Bank TransferBanco GeneralBanistmoCredit CardCash USD

Handyman Invoice Tips

  • List tasks completed
  • Include materials used
  • Note hourly rate
  • Reference minimum charge
  • Document warranty on work

Frequently Asked Questions

What tax rate applies to handyman 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 handymans in Panama?

Common payment methods in Panama include: Bank Transfer, Banco General, Banistmo, Credit Card, Cash USD. Payment on completion. Larger jobs may require deposit.

What should handyman invoices include in Panama?

Your invoice should include: RUC number, DGI registration, Client RUC, Invoice number. For handyman services specifically, also include: General repairs, Furniture assembly, Drywall repair.

How should handymen price their work?

Hourly rate ($50-$100+) or flat rate for common tasks. Include minimum charge.

Should handymen itemize materials?

Yes, list materials purchased with markup. Or have clients supply materials.

What is Panama's ITBMS rate?

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