Panama taxes: operators and players

Taxation of operators and players (Panama)

1) Online operators (iGaming)

Base and rate. For distance games, JCJ (regulator at MEF) fixes a mandatory payment of 10% of gross gaming income (GGR). It is explicitly spelled out in Resolución Nº 11 of 06. 03. 2020 («Juegos de Suerte y Azar a través de Internet»): «Todo Administrador/Operador deberá pagar… el diez por ciento (10%) de sus ingresos brutos». The payment is monthly, with reports on deposits, rates and account balances.

Territorial tax system. Panama has a territorial principle: corporate taxes are paid on income generated in the country. Profile review materials for the license of Panama emphasize: gambling companies pay a fixed payment with GGR (10%), while for transactions with non-residents corporate income outside the territory is usually not subject to local taxation (specified by business structure).

💡 From the license consulting practice for iGaming in Panama: 10% GGR is charged monthly in the first 10 days of the following month; in parallel, there is a requirement for financial guarantees and regular reporting to JCJ.

2) Ground operators (casinos, halls, machines, sweepstakes)

"Share in income" (participación en los ingresos). Historically, the JCJ has applied differing rates of participation in gross revenue by vertical - for example, for "full casinos" by table and for type A machine rooms. Profile statistics and publications indicated 12% of GGR for tables in full-length casinos and 18% for type A machine rooms (JCJ/La Prensa data for 2015-2016). Current tariffs should be double-checked in the current MEF/JCJ price list, as the regulator updates the rules.

Supervision and fiscalization. Contributions are calculated and paid monthly; JCJ controls accrual through turnover/disbursement reports and inspections.

3) Taxes/fees for players

3. 1. Selective collection of 5.5% (2015) for cash payments in gambling establishments

In 2015, Impuesto Selectivo al Consumo (ISC) was introduced 5.5% on payment documents/chips/vouchers used for cash payments in casinos, machine rooms, bingo and sports betting. As explained (La Prensa, PwC) - the fee is charged for cash withdrawal/cashing in establishments.

Repeal/mitigation attempts. In September 2019, MEF/JCJ announced the abolition of 5.5% for at least gaming tables in order to stimulate tourism; media reports clarified that the collection was maintained for slots/bets. Check the specific object and type of operation: the mode could be applied differentially.

💡 It is recommended to clarify the current application of 5.5% in a particular casino/hall: in different years, partial cancellation was reported for tables (in particular, in large hotel casinos) while maintaining charging in other segments.

3. 2. Lottery winnings (LNB state lottery)

Separately, there is a 5% tax on prizes paid by Lotería Nacional de Beneficencia (as well as on bingos/hippodrome) - Ley 104 de 1974 is established. This is a "classic" withholding tax on winnings in the state lottery.

4) Practical compliance and reporting issues

Operator reporting (online): monthly reports to JCJ on GGR, deposits, rates and balances; payment of 10% GGR on time.

AML/KYC: Internet transactions are required to follow Law No. 23 of 27. 04. 2015 (AML/CFT) and JCJ regulations; the regulator's access to logging data is provided for by resolution 2020.

Ground segment: participation rates/fees and payment procedure are detailed in JCJ administrative documents; inspections and sanctions are within the competence of the regulator.

5) Brief FAQ

Online operator in Panama what pays?

10% fixed payment with GGR + reporting/AML requirements for Resolución Nº 11/2020.

How much does the land casino pay?

JCJ's "revenue participation" applies; historically published benchmarks of 12% for tables (full casinos) and 18% for halls of type A machines. See the current JCJ/MEF tariff for exact rates.

Do players pay tax on cash withdrawals?

Since 2015, 5.5% of the ISC has been in effect for cash payments in gambling facilities; in 2019, cancellation steps were announced for tables, while the fee was maintained for a number of other segments. Specify by specific site and type of operation.

Taxes on state lottery winnings?

Yes, 5% withholding on Ley 104 (1974).

The Panama model combines fixed payment with GGR for operators (online - directly 10% under the 2020 resolution) and JCJ-administered revenue shares in the offline segment. For players, there is a 5% deduction for state lottery prizes, as well as a selective collection of 5.5% (2015) for cash payments in gambling establishments, the regime of which was partially relaxed for tables in 2019. Before launching a project or publishing conditions for players, always check the current bets/order on the official MEF/JCJ page and in the latest edition of resolutions - the regulator periodically updates the norms.

Where to check the current documents: Secretaría Ejecutiva de la JCJ (MEF) page with a list of resolutions and rules (including distance games), Resolución Nº PDF 11/2020, as well as MEF publications about 5.5% collection and its changes.