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Panama Tax Information

7% ITBMS

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

SaaS Services to Invoice

  • Monthly subscription
  • Annual subscription
  • Usage-based charges
  • Overage fees
  • Add-on features
  • Setup fees
  • Enterprise licensing

Invoice Requirements in Panama

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

Payment Terms

Prepaid monthly or annually. Enterprise contracts may be Net 30.

Contado15 días30 díasCrédito

Payment Methods in Panama

Bank TransferBanco GeneralBanistmoCredit CardCash USD

SaaS Invoice Tips

  • Include subscription period
  • Show plan details
  • Detail overages separately
  • Reference account ID
  • Include next billing date

Frequently Asked Questions

What tax rate applies to saas 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 saass in Panama?

Common payment methods in Panama include: Bank Transfer, Banco General, Banistmo, Credit Card, Cash USD. Prepaid monthly or annually. Enterprise contracts may be Net 30.

What should saas invoices include in Panama?

Your invoice should include: RUC number, DGI registration, Client RUC, Invoice number. For saas services specifically, also include: Monthly subscription, Annual subscription, Usage-based charges.

How should SaaS companies invoice?

Include plan name, billing period, base price, overages, and total. Reference account ID.

How to handle usage-based billing?

Track usage throughout period. Invoice base plus overages with usage details.

What is Panama's ITBMS rate?

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