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Panama Tax Information

7% ITBMS

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

Tutor Services to Invoice

  • Individual tutoring
  • Group tutoring
  • Test prep
  • Homework help
  • College counseling
  • Online tutoring
  • Subject specialization

Invoice Requirements in Panama

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

Payment Terms

Packages paid upfront. Individual sessions paid at time of service.

Contado15 días30 díasCrédito

Payment Methods in Panama

Bank TransferBanco GeneralBanistmoCredit CardCash USD

Tutor Invoice Tips

  • Specify subject/level
  • Include session duration
  • Note student name
  • Reference lesson dates
  • Track package usage

Frequently Asked Questions

What tax rate applies to tutor 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 tutors in Panama?

Common payment methods in Panama include: Bank Transfer, Banco General, Banistmo, Credit Card, Cash USD. Packages paid upfront. Individual sessions paid at time of service.

What should tutor invoices include in Panama?

Your invoice should include: RUC number, DGI registration, Client RUC, Invoice number. For tutor services specifically, also include: Individual tutoring, Group tutoring, Test prep.

How should tutors price their services?

Hourly rates based on subject, level, and experience. Offer package discounts.

Should tutors require packages?

Packages encourage commitment. Offer flexibility with package sizes.

What is Panama's ITBMS rate?

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