What expenses are tax deductible in Panama?
Taxpayers are entitled to the following deductions from taxable income: – Each single person, US $ 800 annually. – Each married couple filing jointly, US $ 1,600 annually. – As legally defined, US $ 250 for each of the taxpayer’s dependents – All medical expenses incurred in Panama, if duly substantiated, such as medical insurance premiums and the sums paid for hospital and medical expenses not covered by insurance. – Interest paid on mortgage loans for acquiring, constructing, or improving the principal dwelling of the taxpayer in the Republic of Panama, up to a maximum of US $ 15,000 per year. – Interest on loans for the education of the taxpayer or his dependents within the Republic of Panama, or on loans granted by the Institute for Education and Improvement of Human Resources (IFARHU), a governmental entity. – Educational taxes paid or withheld. – Donations to qualified institutions. – Dues paid to nonprofit organizations, associations, or societies.
