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Guide to Accounting Records in Panama

What are Accounting Records?

Accounting Records are documents that clearly and accurately reflect the assets, liabilities, and equity of a legal entity during a given fiscal period. Their annual submission is mandatory for Panamanian companies as part of the country’s transparency and regulatory compliance framework.

All legal entities incorporated in Panama are required to submit their Accounting Records, except for those that fall under specific exemptions described below.

  1. Submission of Accounting Records:
    Legal entities with operations or assets must submit updated accounting records that accurately reflect:
    – Assets
    – Liabilities
    – Equity

This submission demonstrates the financial status of the entity for the relevant fiscal year.

  1. Sworn Declaration:
    The following entities may submit a Sworn Declaration in lieu of accounting records:
    – Entities that only hold assets and whose ultimate beneficial owners are Panamanian nationals.
    – Entities that do not maintain assets and have never carried out commercial activities or earned income, whether inside or outside of Panama.

The Sworn Declaration must be signed by a member of the Board of Directors, a member of the Foundation Council, or a duly authorized representative holding a notarized power of attorney.

Accounting Records or the Sworn Declaration must be submitted no later than April 30 of the year following the declared fiscal period.

Documents may be submitted through any of the following channels:
– Physically at our offices.
– By email to: compliance@fmm.com.pa

Any changes to the submission method will be communicated in due course.

Failure to comply with this obligation may result in severe consequences for the legal entity, such as:
– Fines ranging from USD 5,000.00 to USD 1,000,000.00.
– Suspension from the Public Registry, resulting in the loss of corporate and commercial rights.

The following legal entities are exempt from this obligation:
– Entities operating in Panama that file annual income tax returns with the General Directorate of Revenue (DGI).
– Entities listed on recognized national or international stock exchanges.
– Entities owned by international organizations, multilateral entities, or States.
– Entities that own or charter vessels registered exclusively under Panama’s international merchant marine service.

This guide is based on the following legal instruments:

– Law No. 254 of November 11, 2021
  Official Gazette (PDF): https://www.gacetaoficial.gob.pa/pdfTemp/29427_A/90471.pdf

– Executive Decree No. 177 of December 30, 2024
  (Link to be published soon in the Official Gazette)

– General Directorate of Revenue (DGI)
  https://dgi.mef.gob.pa

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