Can I Claim Décimo Tercer Mes (13th-Month Bonus) as a Business Expense in Panama?
Yes. The mandatory 13th-month payment is a statutory payroll cost, paid in three equal instalments each year.
Finn does your books in Panama
AccountsOS runs full accounting for Panama businesses, tax, expenses and deadlines, in plain English. Ask Finn about yours, no signup needed.
What Dirección General de Ingresos (DGI), Ministry of Economy and Finance (MEF) says
Panamanian labour law requires a 13th-month payment equal to one month's salary, paid in three equal instalments on 15 April, 15 August and 15 December. It is a statutory entitlement and not a discretionary bonus.
When you can claim
- The instalment paid on 15 April
- The instalment paid on 15 August
- The instalment paid on 15 December
- Accruing one-third of a month's salary per instalment period in the books
When you cannot claim
- Discretionary bonuses that are not the statutory payment (treat separately)
- Instalments paid to people who are not employees
- Amounts above the statutory entitlement without a documented reason
- Missed instalments that remain unpaid
Good to know
Pro tip: Accrue the cost monthly rather than booking it only when paid. Monthly profit then reflects the real cost of staff.
Related expenses
Stop guessing what you can claim in Panama
AccountsOS automatically categorises expenses with Dirección General de Ingresos (DGI), Ministry of Economy and Finance (MEF)-aware rules and tells you exactly what is claimable.
Try Free