The purpose of this Newsletter is to remind you about the delivery of accounting records and supporting documentation of your Corporation or Foundation.
WHO MUST KEEP AND DELIVER COPIES OF ACCOUNTING RECORDS AND SUPPORTING DOCUMENTATION?
ALL Corporations and Foundations that DO NOT carry out operations in Panama.
ALL Corporations and Foundations that are dedicated exclusively to holding assets, such as real estate, bank accounts from which they make investments such as the purchase of shares, bonds and ETFs, inside or outside the Panamanian territory.
In turn, if the legal entity performs ACTS OF COMMERCE OR COMMERCIAL OPERATIONS outside the Republic of Panama, it must ALSO provide a Journal and a Ledger.
WHAT IS A ACCOUNT REGISTER AND WHAT IS SUPPORT DOCUMENTATION?
The accounting records are those that clearly indicate the operations of the legal entity, the value of its assets, the income received, its liabilities and equity , and the determination of the financial position in the form of a balance sheet. Example:
(NAME OF THE CORPORATION OR FOUNDATION)
Balance Sheet
of December 31, 2021
In US dollars
ASSETS
Current assets
Cash
Total cash
Accounts receivable
Accounts Receivable Clients
Total accounts receivable
Total current assets
Total assets
LIABILITIES AND EQUITY
PASSIVES
Current liabilities
Commercial Accounts Payable
Payable shareholder
Total current liabilities
non-current liabilities
Total non-current liabilities 0.00
Total Liabilities
CAPITAL
Subscribed shares
Subscription payable
Accumulated result
Profit for the year
Total Equity
Total Liabilities and Equity
The supporting documentation are those that include the contracts, invoices, receipts and any other documentation necessary to support the transactions carried out. Said documentation must be available at the request of the competent authority in Panama.
WHEN SHOULD I DELIVER THE ACCOUNTING RECORDS TO LIMA Y ASOCIADOS?
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WHO SHOULD PREPARE THE ACCOUNTING RECORDS?
Any person inside or outside of Panama as long as LIMA Y ASOCIADOS is aware of who this person is and where the originals of the records and supporting documentation are. LIMA Y ASOCIADOS will keep the COPIES.
WHAT HAPPENS IF I DO NOT PROVIDE COPIES OF THE RECORDS?
In the event that the legal person does not adequately provide the information discussed in this circular, the Panamanian government will apply fines ranging from USD5,000.00 to USD1,000,000.00 and will suspend the corporate rights of the legal person. In any case, the Resident Agent who does not receive the relevant documentation and information must resign and will be subject to the application of fines.
We are at your disposal to answer any questions you may have regarding the content of this newsletter and to do so, you can contact us as follows: registros@limayasociados.com. If you don't have someone to keep your accounting records for you, we can be of assistance.
Panama, march 31 2022.