Panama payroll processing for employed persons (planilla).
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Built by Michael Cutajar and the OpenAccountants team. Written from the official sources it cites.
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ISR withholding computation method
The employer withholds ISR monthly from wages, salaries, and other remuneration for personal services. Panama taxes only Panamanian-source income (territorial system). Multiply the monthly salary by 13 (12 months + décimo/XIII month) to estimate annual income, apply the bracket table to the annual figure, then deduct proportionally each month (one-twelfth of the annual liability).PwC *Panama — Individual — Tax administration*; method consistency across secondary payroll guides
Cumulative-tax check
15% × (50,000 − 11,000) = 15% × 39,000 = 5,850 at B/.50,000. Tax above that point = 5,850 + 25% × (annual income − 50,000). ✔DGI *Tarifa* / PwC (computed)
No local/municipal income taxes on salaries
No local / municipal income taxes on salaries.PwC
Tax-free allowance
B/.11,000DGI *Tarifa* / PwC
Employer ISR withholding steps
1. Take the employee's monthly gross remuneration and project annual income = monthly × 13 (12 + décimo). 2. Apply the annual ISR bracket schedule to the projected annual figure. 3. Divide the resulting annual ISR by 12 to obtain the monthly amount to withhold. 4. Withheld ISR is remitted to DGI monthly, by the 15th of the following month.PwC / secondary payroll guides
Individual filing rules
Tax year = calendar year. An employee with a single salary source already withheld by the employer is generally exempt from filing. Others file by 15 March of the following year; estimated tax (for filers) is due in 3 installments — 30 June, 30 September, 31 December.PwC *Tax administration*
Form 03 and planilla 03
The employer provides each employee an annual Form 03 (Comprobante de Ingresos) and files an annual employer information return (planilla 03) of salaries/withholdings, due 31 March of the following year.PwC *Tax administration*
Sum check
9.75 + 1.25 = 11.00%. ✔PwC *Other taxes*
No wage ceiling
No wage ceiling / cap on CSS or educational insurance — no maximum limit on the taxable amount.PwC
Sum check employer subtotal
13.25 + 1.50 = 14.75%. ✔ The riesgos-profesionales rate is additional to the 14.75% and varies by occupational risk class.PwC / Fabrega Molino
Retirement ages unchanged
Retirement ages (unchanged under Law 462): men 62, women 57.Fabrega Molino
Phase-in application rule
Only the employer CSS line changes across the phase-in. Use the current 13.25% (subtotal 14.75%) for pay periods up to 28 Feb 2027; switch to 14.25% (subtotal 15.75%) from 1 Mar 2027.Law 462 / Fabrega Molino
ISR base default
ISR base is GROSS Panamanian-source salary, projected ×13. Project annual income = monthly × 13, apply brackets, divide by 12. Do not pre-deduct CSS from the ISR base unless the reviewer confirms a net-of-CSS treatment.PwC
Employee deduction default
Employee deduction = 11.00% (CSS 9.75% + educational 1.25%), no ceiling, on every pay period.PwC / Fabrega Molino
Employer subtotal default
Employer subtotal = 14.75% (CSS 13.25% + educational 1.50%) for periods up to 28 Feb 2027; switch to 15.75% from 1 Mar 2027, 16.75% from 1 Mar 2029.Law 462
Riesgos profesionales default
Riesgos profesionales is a SEPARATE employer cost (0.33%–6.25% by class) on top of the 14.75% subtotal — never fold it in. Default to the lowest band only as an illustrative placeholder and flag. `[RESEARCH GAP]`
Minimum wage default
Minimum wage is per activity/size/region. Never assume a single national floor — use the MITRADEL Decree 13 annex cell matching the role. `[RESEARCH GAP]`
Décimo SS rate default
Décimo SS at 7.25%, not 9.75%, and ISR on the décimo only where the worker is taxable. `[RESEARCH GAP]`secondary
USD parity default
USD = balboa 1:1 — present figures in B/.; USD amounts are numerically identical.
Missing/below minimum-wage remuneration
Gross monthly remuneration is not provided or is below the applicable minimum-wage cell (flag a minimum-wage breach).
Unclear Panamanian-source status
It is unclear whether the salary is Panamanian-source (territorial system — refuse to tax foreign-source income without confirmation).
Employer not registered with CSS
The employer is not registered with CSS — payroll cannot be lawfully run via SIPE.
Gross-up without confirming ISR base
A net-pay target is given and you are asked to "gross up" without confirming the ISR base (gross vs net of CSS) — flag the RESEARCH GAP.
Wrong décimo SS rate requested
A décimo is requested with the regular 9.75% SS rate instead of the reduced 7.25% — flag for confirmation.
Phase-in boundary ambiguity
The pay period falls on/after a phase-in boundary (1 Mar 2027 / 1 Mar 2029) without clarification of which employer CSS rate applies.
Rule 1 ISR projection
Project ISR base = monthly gross (Panamanian-source) × 13; apply annual brackets 0% / 15% / 25% with edges B/.11,000 / B/.50,000; divide annual ISR by 12 for the monthly amount.DGI *Tarifa* / PwC
Rule 2 cumulative ISR formula
Cumulative ISR at B/.50,000 = B/.5,850; above B/.50,000, ISR = 5,850 + 25% × (annual − 50,000).
Rule 3 final withholding
ISR withheld monthly is the employee's final tax if there is a single salary source — no annual return required.
Rule 4 employee CSS
Withhold employee CSS + educational = 11.00% of gross (9.75% + 1.25%); no ceiling.PwC / Fabrega Molino
Rule 5 employer CSS
Compute employer CSS + educational = 14.75% of gross (13.25% + 1.50%) for periods up to 28 Feb 2027; 15.75% from 1 Mar 2027; 16.75% from 1 Mar 2029.Law 462
Rule 6 riesgos profesionales separate
Add the separate riesgos-profesionales employer cost (0.33%–6.25% by class) — never fold it into the CSS subtotal. `[RESEARCH GAP]`
Rule 7 décimo
Décimo = ≈ one month's salary, paid in 3 installments (15 Apr / 15 Aug / 15 Dec); SS at the reduced 7.25%; ISR where taxable; cannot be garnished. `[RESEARCH GAP on 7.25%]`
Rule 8 ISR remittance deadline
Remit ISR to DGI monthly by the 15th of the following month. `[RESEARCH GAP on date]`
Rule 9 SIPE filing and registration
File the CSS planilla via SIPE before the 21st of the month; pay within the following month; register each new hire with CSS within ~5 working days of hire. `[RESEARCH GAP — SIPE timing from secondary sources]`
Rule 10 Form 03 and planilla 03
Issue each employee Form 03 (Comprobante de Ingresos) and file the annual employer return (planilla 03) by 31 March of the following year.PwC
Annual-ISR bracket nested formula (column H)
=IF(G<=11000,0, IF(G<=50000,(G-11000)*0.15, 5850+(G-50000)*0.25))
Prohibitions list
- NEVER run payroll for an employer that is not registered with CSS — SIPE filing requires registration. - NEVER tax foreign-source salary — Panama is territorial; only Panamanian-source income is taxed. - NEVER fold the riesgos-profesionales cost into the 14.75% CSS subtotal — it is a separate employer policy (0.33%–6.25% by class). - NEVER apply a wage ceiling to CSS or educational insurance — there is no maximum contributory base. - NEVER withhold the regular 9.75% SS on the décimo — it uses the reduced 7.25% rate (flag the `[RESEARCH GAP]`). - NEVER omit the ×13 annualisation when projecting the ISR base. - NEVER assume a single national minimum wage — use the MITRADEL Decree 13 cell for activity/size/region. - NEVER use the outdated "12.25%" retroactive employer figure — the current rate is 13.25%. - NEVER use 2027/2029 employer CSS rates for periods before their phase-in dates, or current rates after. - NEVER present payroll computations as definitive — always label as estimated and direct to a Panamanian Contador Público Autorizado.
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Quick Reference table
| Field | Value |
|---|---|
| Country | Republic of Panama (national, code PA) |
| Currency | PAB -- Panamanian Balboa (B/.); pegged 1:1 with USD and USD circulates as legal tender |
| Standard pay frequency | Monthly or quincenal (bi-monthly, 15th + month-end); weekly permitted |
| Tax system | Territorial -- only Panamanian-source income is taxed (PwC, Taxes on personal income) |
| Tax year | Calendar / fiscal year (1 January -- 31 December) |
| Income-tax withholding system | ISR (Impuesto Sobre la Renta) -- monthly employer withholding on salaries, projected over 13 months (12 + décimo) |
| Income-tax authority | Dirección General de Ingresos (DGI), Ministerio de Economía y Finanzas (MEF) |
| Social-security authority | Caja de Seguro Social (CSS) |
| Labour / minimum-wage authority | Ministerio de Trabajo y Desarrollo Laboral (MITRADEL) |
| Key legislation | Código Fiscal (ISR brackets, confirmed on DGI Tarifa page); Ley No. 462 de 18 marzo 2025 (CSS reform, employer-rate phase-in); Cabinet Decree No. 221 of 18 Nov 1971 (décimo); Executive Decree No. 13 of 31 Dec 2025 (2026 minimum wage) |
| Filing portals | SIPE (Sistema de Ingresos y Prestaciones Económicas -- CSS planilla, consolidates CSS + ISR); DGI e-Tax |
| Validated by | Pending -- requires sign-off by a Panamanian Contador Público Autorizado (CPA) |
| Skill version | 0.1 |
Tier-2 note. Figures below are research-verified. The load-bearing fully-verified figures are: the three ISR brackets (0 / 15 / 25% at B/.11,000 / B/.50,000), confirmed on the DGI Tarifa page and PwC; and the post-Law-462 CSS rates (employee 9.75%, employer 13.25% rising to 14.25% / 15.25%, educational 1.25% / 1.50%, no wage ceiling), confirmed by PwC and Fabrega Molino. Several specifics could NOT be obtained from a primary CSS/DGI page and are flagged inline as
[RESEARCH GAP — reviewer to confirm]: the riesgos-profesionales rate-by-class table, the internal health/pension split of the 9.75%, the 7.25% décimo SS rate, exact late-payment penalty formulas, and the full 59-rate minimum-wage annex.
ISR Brackets table (DGI Tarifa page (https://dgi.mef.gob.pa/DInforme/Tarifa) and PwC Taxes on personal income (tax year 2026, last reviewed 18 Jan 2026))
| Annual net taxable income (B/.) | Marginal rate | Tax on the band (B/.) | Cumulative tax at top of band (B/.) |
|---|---|---|---|
| 0 to 11,000 | 0% (exento) | 0 | 0 |
| over 11,000 to 50,000 | 15% | 5,850 | 5,850 |
| over 50,000 | 25% | (open) | (open) |
Note: the décimo is included in the annualisation factor (×13) for projecting the ISR base, but the décimo payment itself has special SS treatment (Section 8) and its own ISR treatment where the worker's income level is taxable.
Key personal deductions table (PwC Panama — Individual — Deductions)
| Deduction | Limit (B/.) |
|---|---|
| Married-couple personal exemption | 800 |
| Mortgage interest (Panama home) | up to 15,000/yr |
| Retirement contributions | up to 15,000 |
| Education expenses (since Jan 2019) | up to 3,600 per student |
| Charitable donations | up to 50,000/yr |
| Medical expenses (incurred in Panama, documented) | deductible |
These reduce the taxable base on an employee's own return; they are not normally applied in routine employer monthly withholding.
Employee CSS deductions table (PwC Other taxes; Fabrega Molino Panama Social Security Reform 2025)
| Contribution | Employee rate | Ceiling |
|---|---|---|
| Social security (Seguro Social, CSS) | 9.75% | none |
| Educational insurance (Seguro Educativo) | 1.25% | none |
| TOTAL employee deduction | 11.00% | none |
The internal split of the 9.75% between health (Enfermedad y Maternidad) and pension (IVM) was not obtainable from a primary CSS page. [RESEARCH GAP — reviewer to confirm the health/pension split of the 9.75% employee rate]
Employer CSS contributions table (PwC Other taxes; Fabrega Molino on Law 462)
| Contribution | Employer rate | Ceiling |
|---|---|---|
| Social security (Seguro Social, CSS) | 13.25% (from 1 Apr 2025) | none |
| Educational insurance (Seguro Educativo) | 1.50% | none |
| Subtotal (CSS + educational) | 14.75% | none |
| Professional risk (Riesgos Profesionales) | 0.33% – 6.25% (by industry risk class) | n/a |
[RESEARCH GAP — reviewer to confirm: the riesgos-profesionales 0.33%–6.25% band is from a single secondary guide (allaboutpanamacity); the exact rate-by-industry-class table could not be confirmed on an official CSS page. Obtain the company-specific rate from CSS before relying on it.]
Employer CSS rate phase-in table (Fabrega Molino; MEF reform summary)
| Period | Employer CSS rate | Employer subtotal (CSS + 1.50% educational) |
|---|---|---|
| 1 Apr 2025 – 28 Feb 2027 | 13.25% | 14.75% |
| from 1 Mar 2027 | 14.25% | 15.75% |
| from 1 Mar 2029 | 15.25% | 16.75% |
Total Social-Charge Cost Summary table
| Party | Current (from 1 Apr 2025) | from 1 Mar 2027 | from 1 Mar 2029 |
|---|---|---|---|
| Employee CSS (9.75%) + educational (1.25%) | 11.00% | 11.00% | 11.00% |
| Employer CSS | 13.25% | 14.25% | 15.25% |
| Employer educational | 1.50% | 1.50% | 1.50% |
| Employer subtotal (CSS + educational) | 14.75% | 15.75% | 16.75% |
| Employer riesgos profesionales (separate, by class) | 0.33%–6.25% | 0.33%–6.25% | 0.33%–6.25% |
Thresholds and Contribution Bases table
| Item | Value | Source |
|---|---|---|
| Income-tax-free annual amount | B/.11,000/year | DGI Tarifa / PwC |
| ISR bracket edges (annual) | 11,000 / 50,000 | DGI Tarifa / PwC |
| ISR marginal rates | 0 / 15 / 25% | DGI Tarifa / PwC |
| Cumulative ISR at B/.50,000 | B/.5,850 | DGI Tarifa / PwC (computed) |
| ISR annualisation factor | × 13 (12 months + décimo) | PwC / secondary payroll guides |
| Employee CSS + educational | 11.00% (9.75% + 1.25%), no ceiling | PwC / Fabrega Molino |
| Employer CSS + educational | 14.75% (13.25% + 1.50%), no ceiling | PwC / Fabrega Molino |
| Employer riesgos profesionales | 0.33%–6.25% by class [RESEARCH GAP] | allaboutpanamacity (secondary) |
| Décimo SS rate (reduced) | 7.25% [RESEARCH GAP] | allaboutpanamacity / PKF (secondary) |
| Retirement age | men 62 / women 57 | Fabrega Molino |
The minimum wage is set by Executive Decree No. 13 of 31 Dec 2025, published 6 Jan 2026 (Gaceta Oficial No. 30438), effective 16 January 2026 (replacing Decree No. 01 of 10 Jan 2024). Rates are set per hour, differentiated by economic activity, occupation, company size, and region — 59 rates across 74 activities. Source: EY Panamá — salario mínimo 2026; MITRADEL press release.
Two regions:
Representative hourly rates (examples, NOT exhaustive — use the MITRADEL annex for the exact activity/size/region cell):
Representative minimum wage rates table (EY Panamá — salario mínimo 2026; MITRADEL press release)
| Activity (example) | Region 1 (B/./hr) | Region 2 (B/./hr) |
|---|---|---|
| Manufacturing — small companies | 2.32 | 1.95 |
| Manufacturing — large companies | 3.13 | 2.58 |
| Construction | 3.51 | 3.30 |
| Electricity / gas / water | 3.50 (nationwide) | 3.50 (nationwide) |
| Retail — large companies | 3.02 | 2.48 |
| Domestic workers | 350.00 / month (Region 1) | — |
[RESEARCH GAP — the full 59-rate per-activity table is an annex PDF to Decree 13 and was not retrieved. Pull the exact cell from the MITRADEL annex when granular rates are needed; the figures above are representative examples only.]
Décimo Tercer Mes rules table (Cabinet Decree No. 221 of 18 Nov 1971, regulated by Decree No. 19 of 7 Sept 1973; allaboutpanamacity; PKF Panamá / Laboremia (secondary))
| Rule | Detail |
|---|---|
| Amount | 1 day's salary per 11 days worked in the preceding 4-month period (≈ one month's salary per year total) |
| Payment schedule | 3 installments: 15 April, 15 August, 15 December |
| Social-security treatment | SS deducted at a reduced 7.25% (vs the regular 9.75%) [RESEARCH GAP — the 7.25% décimo SS rate is widely cited in secondary sources but could not be pulled from a primary CSS page — reviewer to confirm] |
| ISR treatment | ISR withholding applies to the décimo where the worker's annual income level is taxable |
| Garnishment | Cannot be garnished |
[RESEARCH GAP][RESEARCH GAP][RESEARCH GAP] (secondary)Required Inputs table
| Input | Why needed |
|---|---|
| Employee gross monthly remuneration (B/.) | Base for both ISR (×13 projection) and CSS |
| Pay-period date | Determines employer CSS rate (13.25% vs 14.25% from 1 Mar 2027) |
| Single vs multiple income sources | Determines whether monthly withholding is final (filing exemption) |
| Whether the remuneration is Panamanian-source | Territorial system — foreign-source salary is not taxed |
| Occupational activity, company size, region | Minimum-wage compliance check |
| Company occupational risk class | Riesgos-profesionales rate (0.33%–6.25%) |
| Employer CSS registration status + new-hire registration | Compliance / SIPE filing obligation |
Deterministic classification of common Panamanian bank-statement lines (Spanish terms first, then English/EOR variants).
Salary Credits table
| Pattern | Classification |
|---|---|
| SALARIO, PLANILLA, PAGO QUINCENA, DEPOSITO SALARIO, ABONO SALARIO | Net salary payment |
| DECIMO, DECIMO TERCER MES, XIII MES | Décimo installment (Apr / Aug / Dec; 7.25% SS) |
| LIQUIDACION, PRIMA DE ANTIGUEDAD, INDEMNIZACION | Severance / termination payment |
| VACACIONES | Paid leave |
Employer Debits table
| Pattern | Classification |
|---|---|
| CSS PLANILLA, CAJA DE SEGURO SOCIAL, SIPE | CSS contributions (employee + employer) remittance |
| SEGURO EDUCATIVO | Educational-insurance component within SIPE |
| RIESGOS PROFESIONALES, RIESGO PROFESIONAL | Professional-risk insurance premium (employer) |
| DGI, MEF, RETENCION ISR, IMPUESTO SOBRE LA RENTA | ISR withholding remittance to DGI |
| PLANILLA SALARIOS, PAGO EMPLEADOS, TRANSFERENCIA NOMINA | Net wages disbursement to employees |
| DECIMO TERCER MES, XIII MES | Décimo payment to employees (Apr / Aug / Dec) |
All examples use current rates: ISR brackets 0 / 15 / 25% (edges 11,000 / 50,000); ISR base = monthly × 13 projected annual, ÷ 12 monthly; employee CSS+educational 11.00%; employer subtotal 14.75% (CSS 13.25% + educational 1.50%). Riesgos profesionales shown illustratively at the low end and flagged. Figures recomputed end-to-end (B/. = USD).
DEPOSITO SALARIO XYZ SA B/.712.00.[RESEARCH GAP — 7.25% rate from secondary sources]DECIMO TERCER MES B/.2,782.50 (split across three installments in practice).[RESEARCH GAP][RESEARCH GAP on 7.25%][RESEARCH GAP on date][RESEARCH GAP — SIPE timing from secondary sources]These items require a Panamanian accountant's judgement and are flagged rather than auto-computed:
[RESEARCH GAP — reviewer to confirm][RESEARCH GAP][RESEARCH GAP][RESEARCH GAP][RESEARCH GAP][RESEARCH GAP]Excel Working Paper Template columns
| Col | Header | Formula / Source |
|---|---|---|
| A | Employee name | input |
| B | Cédula / ID | input |
| C | Activity / size / region | input (minimum-wage check) |
| D | Gross monthly remuneration B/. | input |
| E | Minimum wage for cell B/. | lookup (MITRADEL Decree 13 annex) |
| F | Min-wage OK? | =IF(D>=E,"OK","BREACH") |
| G | Projected annual B/. | =D*13 |
| H | Annual ISR B/. | bracket formula on G (Section 2) |
| I | Monthly ISR B/. | =H/12 |
| J | Employee CSS + educational B/. | =D*0.11 |
| K | Net pay B/. | =D-I-J |
| L | Employer CSS + educational B/. | =D*0.1475 (to 28 Feb 2027) / =D*0.1575 (from 1 Mar 2027) |
| M | Employer riesgos profesionales B/. | =D*<company risk rate> (0.33%–6.25%) |
| N | Total employer cost B/. | =D+L+M |
Totals row: columns I, J, K, L must each sum independently; reconcile column N to the bank disbursement plus remittances. Add a separate décimo working paper using the reduced 7.25% SS rate for Apr / Aug / Dec installments.
Terminology reading guide table
| Spanish term | Meaning |
|---|---|
| Salario bruto | Gross salary |
| Salario neto | Net salary (take-home) |
| Planilla | Payroll / contribution filing |
| Cuota obrero-patronal | Combined employee + employer CSS contribution |
| Seguro Social / CSS | Social-security fund (Caja de Seguro Social) |
| Seguro Educativo | Educational-insurance contribution |
| Riesgos Profesionales | Professional-risk (workers' comp) insurance |
| Retención | Withholding |
| ISR / Impuesto Sobre la Renta | Income tax |
| Décimo Tercer Mes / XIII Mes | 13th-month mandatory bonus (Apr / Aug / Dec) |
| Prima de antigüedad | Seniority premium (termination) |
| Indemnización | Severance / dismissal compensation |
| Quincena | Fortnight (bi-monthly pay period) |
| SIPE | CSS online declaration/payment system (consolidates CSS + ISR) |
| DGI | Dirección General de Ingresos (tax authority) |
| MITRADEL | Labour ministry (minimum wage / labour law) |
| Comprobante de Ingresos (Form 03) | Annual income certificate to the employee |
| Balboa (B/.) | National currency unit, 1:1 with USD |
If you cannot identify the correct figures for a specific employee or period:
[RESEARCH GAP — reviewer to confirm].Income Tax Withholding filings table
| Item | Purpose | Deadline |
|---|---|---|
| Monthly ISR remittance | Pay ISR withheld from salaries to DGI | By the 15th of the following month [RESEARCH GAP — secondary source] |
| Form 03 (Comprobante de Ingresos) | Annual income certificate to each employee | Annually |
| Planilla 03 (employer information return) | Annual return of salaries / withholdings | 31 March of the following year (PwC) |
Social Security filings table (PwC Tax administration (planilla 03, Form 03); SIPE timing and registration windows from secondary payroll providers (neeyamo, papayaglobal))
| Filing | Purpose | Deadline |
|---|---|---|
| Monthly CSS planilla (SIPE) | Declare and pay CSS + educational (employee + employer) + ISR | Present before the 21st of the month; pay within the following month [RESEARCH GAP — secondary] |
| New-hire registration | Register each new employee with CSS (and DGI) | Within ~5 working days of hire [RESEARCH GAP — secondary] |
Penalties table
| Penalty | Detail |
|---|---|
| Late CSS payment | Surcharges + interest assessed by CSS [RESEARCH GAP — exact formula not on a primary page] |
| Unregistered workers / under-declaration | Retroactive employer + employee contributions, surcharges, MITRADEL fines, and in severe cases suspension of operations [RESEARCH GAP — exact figures not confirmed] |
| Late ISR remittance | Surcharges / interest by DGI [RESEARCH GAP — exact formula not confirmed] |
Note: a "12.25%" retroactive employer figure appears in one secondary source but conflicts with the current 13.25% rate — treat as outdated and do NOT use it.
Reference Figures table
| Item | Value | Source |
|---|---|---|
| Income-tax-free annual amount | B/.11,000 | DGI Tarifa / PwC |
| ISR bracket edges (annual) | 11,000 / 50,000 | DGI Tarifa / PwC |
| ISR marginal rates | 0 / 15 / 25% | DGI Tarifa / PwC |
| Cumulative ISR at B/.50,000 | B/.5,850 | DGI Tarifa / PwC (computed) |
| ISR annualisation factor | × 13 | PwC / secondary |
| Employee CSS + educational | 11.00% (9.75% + 1.25%), no ceiling | PwC / Fabrega Molino |
| Employer CSS + educational | 14.75% (13.25% + 1.50%) → 15.75% (2027) → 16.75% (2029) | PwC / Fabrega Molino / Law 462 |
| Riesgos profesionales | 0.33%–6.25% by class | allaboutpanamacity [RESEARCH GAP] |
| Décimo SS rate | 7.25% (reduced) | secondary [RESEARCH GAP] |
| Retirement age | men 62 / women 57 | Fabrega Molino |
| Minimum wage | per activity/size/region (Decree 13, eff. 16 Jan 2026) | EY / MITRADEL [RESEARCH GAP on full annex] |
[RESEARCH GAP on 7.25%]Interaction with Other Skills table
| Scenario | Skill to use |
|---|---|
| Employee payroll (ISR + CSS) | This skill (panama-payroll.md) |
| ITBMS (VAT) returns | panama-itbms.md |
| Corporate income tax | panama-corporate-tax.md (if available) |
| Bookkeeping | panama-bookkeeping.md (if available) |
[RESEARCH GAP]). - NEVER omit the ×13 annualisation when projecting the ISR base. - NEVER assume a single national minimum wage — use the MITRADEL Decree 13 cell for activity/size/region. - NEVER use the outdated "12.25%" retroactive employer figure — the current rate is 13.25%. - NEVER use 2027/2029 employer CSS rates for periods before their phase-in dates, or current rates after. - NEVER present payroll computations as definitive — always label as estimated and direct to a Panamanian Contador Público Autorizado.This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a Contador Público Autorizado in Panama) before implementation.
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