Update of F18V6 (Affidavit of Income) and its impact on operations with related parties according to the DGI
Panama City, May 5, 2023
The General Directorate of Revenue (DGI) has updated the 2022 Affidavit of Income Form, F18V6. This new version of the form includes new boxes that detail the operations with related parties both abroad, in free zones and in the local market.
In the case of operations with related parties abroad, new boxes are included to report income, costs and expenses. This is because companies may have subsidiaries or affiliates abroad and carry out operations with them that must be reported to the tax authorities. It is important to highlight that these operations must be carried out at market prices to avoid tax evasion.
Companies that operate in free zones must also report the operations they carry out with related parties. In this case, boxes are included to report income, costs and expenses related to operations in free zones. It should be noted that companies that operate in free zones have certain tax benefits, but must comply with certain tax obligations.
Finally, the form includes boxes to report operations with related parties in the local market. This is important because companies may have business relationships with other companies of the same economic group in the local market, and these operations must be reported to avoid tax evasion.
In conclusion, the new boxes of the 2022 Tax Return Form, F18V6, allow companies to report in more detail operations with related parties abroad, in free zones and in the local market.
It is important that companies comply with their tax obligations and report all operations carried out with related parties at market prices to avoid problems with the tax authorities.
Sincerely,
TP Consulting Panama
