Panama public holidays 2026, VAT rate and tax data
Panama: VAT rate 7% since 1 Jul 2010; 13 public holidays in 2026 (next: Separación de Panamá de Colombia, 3 Nov 2026); corporate tax rate 25%; minimum wage 1.64 PAB/hour; inflation rate (CPI) 2.2%.
11 series, each cited to the official source it was verified against; most recently verified 5 Oct 2026. Currency PAB.
verified recentlyre-verification due soonstaleColour is the age of the last check against the series' own update cycle.
Panama public holidays 2026
13 days in 2026; next: Separación de Panamá de Colombia on 3 Nov 2026. Official source: Código de Trabajo, arts. 45-49 (Decreto de Gabinete 252 de 1971, texto consolidado); Ley… · last verified 30 Jul 2026
Fixed by law 12 Confirmed 1
| Date | Holiday | Status | Source |
|---|---|---|---|
| 1 Jan 2026 Thu | Año Nuevo | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 9 Jan 2026 Fri | Día de los Mártires | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 17 Feb 2026 Tue | Martes de Carnaval | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 3 Apr 2026 Fri | Viernes Santo | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 1 May 2026 Fri | Día del Trabajo | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 3 Nov 2026 Tue | Separación de Panamá de Colombia | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 5 Nov 2026 Thu | Día de Colón (Consolidación de la Separación) | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 10 Nov 2026 Tue | Primer Grito de Independencia (Villa de Los Santos) | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 28 Nov 2026 Sat | Independencia de Panamá de España | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 8 Dec 2026 Tue | Día de la Madre | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 20 Dec 2026 Sun | Día de Duelo Nacional 20 de diciembre de 1989 |
Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 21 Dec 2026 Mon | Lunes habilitado como descanso obligatorio art. 47 CT: 20-dic cae domingo |
Confirmed | Código de Trabajo, arts. 45-49 (Decreto… |
| 25 Dec 2026 Fri | Navidad | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
2027 dates already held (13)
| Date | Holiday | Status | Source |
|---|---|---|---|
| 1 Jan 2027 Fri | Año Nuevo | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 9 Jan 2027 Sat | Día de los Mártires cae sábado; el art. 47 CT sólo alcanza domingos, no se traslada |
Substitute | Código de Trabajo, arts. 45-49 (Decreto… |
| 9 Feb 2027 Tue | Martes de Carnaval | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 26 Mar 2027 Fri | Viernes Santo | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 1 May 2027 Sat | Día del Trabajo | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 3 Nov 2027 Wed | Separación de Panamá de Colombia | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 5 Nov 2027 Fri | Día de Colón (Consolidación de la Separación) | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 10 Nov 2027 Wed | Primer Grito de Independencia (Villa de Los Santos) | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 28 Nov 2027 Sun | Independencia de Panamá de España | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 29 Nov 2027 Mon | Lunes habilitado como descanso obligatorio art. 47 CT: el 28 de noviembre cae domingo |
Confirmed | Código de Trabajo, arts. 45-49 (Decreto… |
| 8 Dec 2027 Wed | Día de la Madre | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 20 Dec 2027 Mon | Día de Duelo Nacional 20 de diciembre de 1989 |
Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
| 25 Dec 2027 Sat | Navidad | Fixed by law | Código de Trabajo, arts. 45-49 (Decreto… |
Status is read from the record: fixed by law follows from a standing rule (a fixed date or the Easter computus); confirmed is dated in the cited official calendar and not flagged provisional; estimated is provisional or moon-sighting dependent; substitute stands in for a statutory day that fell on a weekend or was moved. Hover a status for the reason.
Every current Panama value
Rate schedules and breakdowns
Withholding tax rates
5–20% across 6 withholding taxes — no single rate · in force from 2011-01-01 · Official source: DGI (dgi.mef.gob.pa), per-form legal notes: Formulario 07 (dividends, citing… · last verified 10 Aug 2026
Rates by payment type
| key | label | rate | applies to | effective from | Source |
|---|---|---|---|---|---|
| dividends | Impuesto de Dividendos (Dividend Tax) - Panama-source profits | 10 | dividends or participation quotas distributed out of Panamanian-source profits, resident and non-resident shareholders alike | — | DGI Formulario 07 (base legal: Arts… |
| The withholding is on the distributing company and is a final tax; once withheld, shareholders do not include the dividend in their own returns. Any loan or credit the company grants its shareholders is deemed a distribution and pays the 10% ('Todo prestamo o credito que la… | |||||
| dividends-exempt-foreign-source | Impuesto de Dividendos - exempt or foreign-source profits, and free/special zones | 5 | dividends distributed out of profits exempt from income tax or of foreign source or from export operations, including companies in the Zona Libre de Colon, Area Panama Pacifico and other free or special zones | — | DGI Formulario 07 (Arts. 708 y 733 del… |
| This is the reduced leg of articulo 733: 5% instead of 10% where the underlying profits were exempt, foreign-source or export-derived, including the free-zone regimes. Loans to shareholders are always deemed distributed at 10% even where this 5% rate would otherwise apply. | |||||
| dividends-bearer-shares | Impuesto de Dividendos - bearer shares | 20 | dividends paid on acciones al portador (bearer shares) | — | Codigo Fiscal, articulo 733 (via DGI… |
| Penalty-level rate for the (now largely phased-out) bearer-share regime; the ordinary 10%/5% rates apply only to registered (nominative) shares. | |||||
| interest | Remittance withholding on interest paid abroad (effective rate on gross) | 12.5 | interest, commissions and other financial charges of Panamanian source paid or credited to lenders and other beneficiaries domiciled outside Panama, where the payer takes the expense against Panama-taxable income; effective rate stated for corporate recipients | 2005-02-03 | Codigo Fiscal remittance mechanism (via… |
| NOT A NAMED FLAT RATE: the statute applies the 25% articulo 699 corporate rate to 50% of the sum remitted, an EFFECTIVE 12.5% on the gross remittance, which is what is served here. For non-resident individuals the articulo 700 progressive rates apply to the 50% base instead, so… | |||||
| royalties | Remittance withholding on royalties paid abroad (effective rate on gross) | 12.5 | regalias (royalties) and similar Panama-source income paid or credited to beneficiaries domiciled outside Panama, where the payer benefits in Panama and deducts the expense; effective rate stated for corporate recipients | — | Codigo Fiscal remittance mechanism (via… |
| Same 50%-of-gross mechanism as interest: 25% (articulo 699) on half the remittance = EFFECTIVE 12.5% on gross for corporate recipients; articulo 700 progressive rates on the 50% base for individuals. | |||||
| services | Remittance withholding on services and other remittances abroad (effective rate on gross) | 12.5 | fees for services (including professional, technical and administrative services) and any other Panama-source income remitted to persons domiciled outside Panama, where the service benefits a person in Panama and the payer deducts the expense (articulo 694 paragrafo 1 literal e); effective rate stated for corporate recipients | — | Codigo Fiscal, articulo 694 paragrafo 1… |
| Catch-all head: services rendered from abroad are withholdable only when they benefit a person located in Panama and that person deducts the payment as a Panama expense (territorial-source deeming rule of articulo 694). Mechanism as for interest/royalties: 25% on half the gross… | |||||
Personal income tax (ISR personas naturales)
0–25% across 3 bands · in force from 2010-01-01 · Official source: Código Fiscal, art. 700 (texto según Ley 8 de 15 de marzo de 2010, G.O… · last verified 5 Oct 2026
| min | max | rate |
|---|---|---|
| 0 | 11000 | 0 |
| 11000 | 50000 | 15 |
| 50000 | — | 25 |
Statutory social-insurance contributions
0–23% across 3 contribution branches · in force from 2026-01-01 · Official source: Ley 51 de 27 de diciembre de 2005, Ley Orgánica de la Caja de Seguro Social… · last verified 11 Aug 2026
| key | label | rate total | rate employee | rate employer | unit | base | currency |
|---|---|---|---|---|---|---|---|
| css_regimen_general | Cuota a la Caja de Seguro Social (CSS) — régimen general: invalidez, vejez y muerte, enfermedad y maternidad | 23 | 9.75 | 13.25 | percent | The salary paid to the worker. NO CEILING is applied to the ordinary contribution. THE DÉCIMO TERCER MES IS CHARGED AT DIFFERENT RATES: 7,25 % employee and 10,75 % employer on the amount of each instalment, not the ordinary 9,75 %/13,25 %. | PAB |
| THE EMPLOYER RATE IS 13,25 %, NOT 12,25 %, AND MOST PANAMANIAN PAYROLL CALCULATORS STILL SHOW 12,25 %. Ley 462 de 2025 raised it and it is the single most commonly stale figure in Panamanian payroll — an engine carrying 12,25 % understates employer cost by a full point. THE… | |||||||
| seguro_educativo | Seguro Educativo — Fondo del Seguro Educativo | 2.75 | 1.25 | 1.5 | percent | The salary paid to the worker, on the same basis as the CSS contribution and with no ceiling applied. NOT payable on the décimo tercer mes — the seguro educativo does not apply to that payment on either side. | PAB |
| A SEPARATE LEVY THAT LOOKS LIKE PART OF THE CSS BECAUSE IT IS COLLECTED ON THE SAME PLANILLA. It is an education levy, not social insurance: the worker acquires no individual entitlement. It is the reason the Panamanian employee deduction is 11,00 % and not 9,75 %, and the… | |||||||
| riesgos_profesionales | Seguro de Riesgos Profesionales — occupational accidents and diseases, risk-rated by activity | — | 0 | — | percent | The salaries paid by the employer. The rate is set per EMPLOYER by the CIIU code of its registered economic activity, over a published span of 1,05 % to 5,67 %. Collected by the Caja de Seguro Social on the same planilla as the general contribution. No ceiling. | PAB |
| NO SINGLE NATIONAL RATE — rate_employer deliberately null. PUBLISHED SPAN 1,05 % TO 5,67 % of salaries, assigned by the CIIU code under which the employer is registered with the CSS. A more-than-fivefold spread, so no average is usable: an office or professional employer sits… | |||||||
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Compare each figure with the other North American countries: Policy interest rate · VAT rate · VAT registration threshold · Minimum wage · Public holidays · Inflation rate (CPI) · Corporate tax rate · Withholding tax rates · Statutory interest rate · Income tax rates · Social contributions
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Every value above names the official instrument it came from and the date it takes effect, and we record when we last checked it. Where a value could not be verified against its own statute we do not publish an estimate — the series is simply absent. Where a question falls outside what we hold, the API refuses and explains, free of charge, rather than returning a number that looks right.