How to Obtain a Tax ID (RUC) in Panama and why you should to it.

Obtaining a Tax ID, or Registro Único de Contribuyentes (RUC), in Panama is a crucial step for any expat living in Panama. The RUC serves as a unique identifier for taxpayers, whether they are individuals or corporations, and is essential for complying with Panamanian tax regulations. PLEASE DO NOT CONFUSE the payment of taxes in Panama for foreigners, which in most cases is 0, with the mandatory filing that every citizen must do.

Steps to Obtain a RUC in Panama,

• Gather Necessary Documents: Ensure you have all required documentation, including identification, proof of address and residence card, if needed.

• Look for a CPA: Only accountants in Panama are authorized to apply for a tax number. If you still do not have a reliable accountant in Panama, you can contact Agroup Consulting Panama, which is the firm I recommend to use.

• Receive Your RUC: Once your application is processed, you will be issued a RUC, which you must use for all tax-related matters.

Benefits of Having a RUC.

Having a RUC you will be able to apply for bank loans in Panama even if you do not pay taxes.  You can also use it to avoid paying taxes in your country of origin, depending on whether or not Panama has a double taxation treaty with your country.

I hope this information can be useful for expatriates living in Panama.