Can I Claim CSS Employer Contributions as a Business Expense in Panama?
Yes. The employer share of CSS contributions, Educational Insurance and the Professional Risk premium are payroll costs of the business.
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What Dirección General de Ingresos (DGI), Ministry of Economy and Finance (MEF) says
Employers pay CSS contributions on gross salary, plus 1.50% for Educational Insurance and a Professional Risk premium of roughly 1.05% to 5.67% depending on the CIIU industry classification. The employer rate is legislated to rise in steps under Law 462 of March 2025, reaching 15.25% from March 2029. The employee share of 9.75% is withheld from the employee, not paid by the company.
When you can claim
- Employer CSS contribution on gross salary
- Educational Insurance at 1.50%
- Professional Risk Insurance premium
- Contributions remitted monthly through SIPE
When you cannot claim
- The employee 9.75% share, which is a deduction from the employee's pay and not an extra employer cost
- Late payment surcharges
- Contributions on payments that are not salary (confirm with CSS)
- Contributions for people who are not employees
Good to know
Pro tip: Check the employer rate for the month you are paying. The rate changes in stages, so last year's percentage can be wrong.
Related expenses
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