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LatinNews Daily - 07 April 2021

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In brief: Panama’s Cortizo extends tax amnesty

* Panama’s President Laurentino Cortizo has sanctioned a law which extends a general tax amnesty period, first approved in March 2020, as part of efforts to help those affected by the impact of the coronavirus (Covid-19) pandemic. The initiative gives taxpayers until 31 August 2021 to pay taxes or sort out payment arrangements with regard to tax obligations which have not been met as of 31 January 2021, and provides an 85% reduction of penalties, surcharges, and interest. The new law also provides a 75% reduction of penalties for taxpayers paying up to 25% of their tax debts by 31 December 2021. It follows other recent efforts to kickstart the economy, which shrank 17.9% in 2020 - the deepest economic contraction in Central America last year. These include President Cortizo’s sanctioning on 5 April of a new law which creates a national authority to attract investment and promote Panama’s exports (ProPanamá).