Individual - Income determinationLast reviewed - 03 June 2023
Individuals must consider as gross income the total income received from their activities undertaken in the Panamanian territory.
Compensation includes salary, premiums, share-profits, living expenses allowance, house allowance, car allowance, tax reimbursements, benefits-in-kind, retirement benefits, and any other compensation in kind.
Representation allowance is subject to a definitive WHT at the following rates:
|Representation allowance (USD)||WHT on column 1 (USD)||WHT on excess (%)|
|Over (column 1)||Not over|
See Capital gains tax in the Other taxes section for a description of how capital gains are taxed in Panama.