A new Panama law proposal to exempt from income tax payments of educational expenses

A new Panama law proposal to exempt from income tax payments of educational expenses

Twelve deputies from different political parties in the Panama National Assembly proposed a law project so college studies expenses can be deducted from the income tax declaration.

This is the law project supported by 115   deputies from five parties in addition to the independent legislator Ana Matilde Gomez.

These expenses will be deductible if incurred with respect to third level education or higher education of the adult  dependents of the taxpayer, still under their custody, relating to the payment of tuition and credit hours. This deduction may also be applied to taxpayers who pay for their own studies.

Income tax deduction mechanism would also apply to minor children.

The school fees incurred with respect of minor dependents of the taxpayer, including tuition and school fees, school supplies and school transportation, related to the first level or basic general education or secondary education will be deductible.  

The project law is now under review by  the commission of Economy and Finance of the Panama National Assembly.