Monthly. Confirm the exact remittance deadline with the DGI, as it is separate from the ITBMS and ISR calendars.
Income Tax Withholding on Salaries
Income tax withheld from employee salaries (retención en la fuente) is remitted to the DGI, separately from CSS contributions.
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Who this applies to
- Employers paying salaries above the withholding level
- Companies running payroll in Panama
- Businesses with new employees
What to file
Remittance of income tax withheld from employee pay.
How to file
To the DGI. Confirm the current method on dgi.mef.gob.pa.
Payment due
Monthly, alongside the payroll run. Confirm the date with the DGI.
Penalties for missing this deadline
Finn's Panama rules do not hold the penalty for late remittance. Confirm the current position with the DGI.
Filing checklist
- Calculate the withholding for each employee
- Deduct it from the salary payment
- Remit to the DGI by the due date
- Keep the withholding records
- Reconcile to the payroll register
Documents you'll need
- Payroll register
- Employee tax details
- Withholding calculations
- Prior remittance receipts
Common mistakes to avoid
- Remitting CSS and forgetting the DGI withholding
- Assuming one calendar covers both
- Not keeping records by employee
- Withholding and not remitting
Never miss a Panama deadline
AccountsOS tracks every Dirección General de Ingresos (DGI), Ministry of Economy and Finance (MEF) and Registro Público de Panamá deadline and reminds you weeks ahead.
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