Panama’s tax authority has levied $3.4 million in fines against businesses for failing to issue proper receipts. Camilo Valdes, director of the General Directorate of Revenue (DGI), disclosed the penalties this week during a legislative hearing focused on economic sustainability.
The fines resulted from inspections conducted between July 2024 and November 2025. Agency officials examined 5,523 businesses during that period and found a troubling 69 percent non-compliance rate related to billing and collecting the 7 percent ITBMS (Transfer Tax on Movable Property and Services). Valdes confirmed the enforcement push aims to boost state revenue and curb widespread tax evasion.
“We have converted each consumer of goods and services into a DGI inspector,” Valdes told lawmakers. [Translated from Spanish] He credited a new fiscal lottery program for part of the recent improvement in tax collection. The initiative offers cash prizes to consumers who request official receipts.
Monthly ITBMS collection has risen significantly since the lottery’s August launch. Valdes reported averages between $65 and $69 million before the program. Figures climbed to between $70 and $80 million afterward, even reaching $91 million in October. The DGI now projects December collections could surpass $100 million given heightened commercial activity.
Persistent Non-Compliance Remains a Challenge
Despite these gains, the director acknowledged a stubbornly high evasion rate. Initial operations in July 2024 found non-compliance at 83 percent. That number dropped to 60 percent but has since rebounded to the current 69 percent. Valdes called this percentage unacceptably high for the nation’s fiscal health.
He stressed that businesses failing to issue legally compliant receipts directly violate the law and deprive the state of crucial revenue. The agency faces intense pressure to increase collections, particularly under Panama’s ambitious 2025 national budget which exceeds $30 billion. Ensuring proper billing is a central component of that strategy.
Valdes shared these details at the First Multisectoral Meeting on Investment Grade and Sustainable Economic Development. The event was organized by the National Assembly’s Economy and Finance Commission. Its goal is to formulate measures that could improve Panama’s standing with international markets and credit rating agencies.
“When a business does not issue invoices, or issues them without the legal requirements, it directly fails to comply with the law and affects state revenue,” Valdes stated. [Translated from Spanish]
Enforcement efforts extend beyond the lottery and fines. The General Directorate of Revenue (DGI) is collaborating with the Center for Tax Administrations to implement an electronic invoice anomaly detector. This tool will identify taxpayers who are issuing documents correctly and those who are not. Officials believe it will enable better traceability and more efficient audits.
Separate from the billing fines, Valdes reported that judicial authorities have collected approximately $30 million in delinquent taxes so far in 2025. This parallel effort targets longstanding debts owed to the state.
Digital Expansion and Monthly Draws Planned
The fiscal lottery program will continue expanding its reach. Valdes announced that starting in February 2026, draws will occur monthly instead of quarterly. Each province will host its own separate lottery event. This provincial approach aims to boost participation nationwide.
Authorities are also advancing plans for a fully digital lottery system. The shift to technology seeks to streamline the process and encourage even broader consumer engagement. The underlying message to businesses remains clear. The DGI is intensifying its oversight and will sanction non-compliance.
This focus on tax administration and formalization is part of a broader conversation about Panama’s economic stability and growth. Discussions at the multisectoral meeting, including topics on sustainable desarrollo econ, underscore the government’s push to strengthen fiscal foundations. The drive for improved compliance is directly linked to maintaining macroeconomic stability and appealing to international investors.
For everyday Panamanians, the directive is simple. Always ask for your receipt. That action not only enters you into a monthly cash prize drawing but also supports the nation’s public finances. The DGI’s campaign turns routine transactions into a powerful audit tool, leveraging public participation to enforce the law.