Panama Tax Tables 2023 - Tax Rates and Thresholds in Panama

This page contains the tax table information used for the calculation of tax and payroll deductions in Panama in 2023. These tax tables are used for the tax and payroll calculators published on iCalculator™ PA, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Panama or would like to add to or suggest amendments to the information herein then please contact us.

Panama Personal Income Tax Tables in 2023

The Income tax rates and personal allowances in Panama are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Panama Tax Calculator 2023.

In Panama, social security deductions made by employees are considered deductible expenses for the purpose of calculating taxable income. This means that the contributions employees make towards social security can reduce their gross taxable income, potentially lowering the amount of income tax owed. This deduction aligns with Panama's tax policies, designed to encourage participation in the social security system while providing a tax benefit to employees, thereby supporting their financial well-being.

Panama Social Security and Payroll Deduction Rates in 2023

In Panama, the social security system plays a crucial role in providing a safety net for employees, offering a range of benefits funded by contributions from both employers and employees. This comprehensive system aims to cover risks associated with healthcare, retirement, and occupational hazards, among others. Understanding the different types of social security and payroll deductions is essential for both employers and employees operating within Panama.

Panama's social security and payroll deduction system is designed to provide comprehensive coverage and support to the workforce, addressing various needs from healthcare and retirement to occupational hazards. By contributing to this system, employers and employees invest in a framework that enhances the social welfare and economic stability of the country.

Panama VAT Rates in 2023

VAT rates for Panama are reviewed annually, you can use the VAT Calculator to calculate VAT due in Panama or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.

Historic Tax Tables supported for Panama

The following tax tables are supported by iCalculator™ PA as part of the suite of free tax tools we provide for Panama.