What is the RUC? What types exist? How is it obtained?.

The RUC (Registro Único de Contribuyentes) is designed to encompass a wide range of taxpayers, ensuring complete fiscal identification. Tax identifiers like the RUC are a fundamental tool in the Panamanian tax system, administered by the General Directorate of Revenue (DGI). Its primary purpose is to identify and register all individuals and entities that have tax obligations within the country.

The Single Taxpayer Registry (RUC) is the tax identification number used in Panama.

• For Legal Entities, it is created upon registration in the Public Registry.
• For Natural Persons (Individuals), it corresponds to their personal identity card number (Cédula).

The registration or modification process is carried out entirely online through the DGI web portal, where the taxpayer enters the required data and attaches scanned documents.

The system allows you to save the application to complete it later or submit it directly. Once submitted, the applicant receives a confirmation email; after internal review and approval by the DGI to guarantee the veracity of the data, a second email is received with a link to create the password to access the e-Tax 2.0 system, tied to the taxpayer's RUC.

What types of RUC exist?

Currently, there are five types of taxpayers with a Single Taxpayer Registry, divided into three classes:

1. Persons: These are individuals. This category includes taxpayers designated as Natural Person (Nationals) and Natural Person NT (Foreigners).
2. Entities: These are legal, moral, or juridical persons constituted under national or foreign legislation. They can be Legal Person (Local) or Legal Person NT (Foreign or Special).
3. Fincas (Properties): This is assigned to real estate assets consisting of portions of land. These properties can be rural or urban and may or may not include construction areas.

Natural Persons

This category includes nationals who generate income or carry out economic activities. This encompasses independent professionals, merchants, salaried employees, as well as retirees and pensioners. In this case, their RUC number is the same as their ID card number (Cédula), and the procedure is to register in the tax system via the application.

Natural Person NT (Tax Number)

The "NT" in the nomenclature indicates that, although the taxpayer is a natural person, they do not meet the characteristics required of a Panamanian natural person (specifically, holding a national ID). This applies to taxpayers who do not have Panamanian identification but still have the need or obligation to file returns with the DGI.

This is the case for individuals who qualify as Tax Residents based on the duration of their stay in the Republic of Panama (remember that this status is acquired after spending more than 183 days continuously or alternately in the country).

This type of RUC applies to independent foreigners, employees, those participating in the purchase of shares, sale of real estate within the national territory, as well as those providing and invoicing professional services, regardless of whether said income was generated abroad. These may not be subject to taxes, but they must be reported.

In all cases, a copy of the ID or passport is requested.

• Foreign Taxpayer invoicing Professional Services: To apply, you must present proof of your income subject to taxes in Panama. You can use a notarized contract, invoices, or similar documents. If you have none of these, you can present a certification from a Certified Public Accountant (CPA) confirming that you have generated such income.
• Foreign Taxpayer for Sale of Real Estate: The Purchase/Sale Agreement must be attached, duly notarized and signed by the buyer and the seller, as well as the seller’s passport and the buyer’s ID/passport and general information.
• Foreign Taxpayer for Purchase of Shares: The Share Purchase Agreement must be attached, duly notarized and signed by the buyer and the seller, as well as the seller’s passport and the buyer’s ID/passport and general information.

Legal Entities (Personas Jurídicas)

This category mainly corresponds to legal entities constituted in Panama under the protection of the country’s laws and registered in the Public Registry of Panama. Generally, at the time of their legal constitution, they receive a folio number that identifies them and becomes part of their RUC.

This registry is national in nature and is unrelated to the local commercial registry (Municipios), which requires other types of management.

It covers a vast diversity of organizations and entities legally constituted or recognized to operate. This includes companies established in Panama or abroad, real estate or movable property trusts, state entities, international organizations, cooperatives, unions, political parties, consortia or companies without legal personality, and Co-Owners’ Associations of Horizontal Properties (PH).

Legal Entity NT (Tax Number)

Just as with the Natural Person NT (assigned a tax number due to lack of an ID card), foreign entities constituted abroad are assigned an NT tax number. This provides them with an identifier in the local tax system allowing them to comply with their tax obligations.

In the case of entities without Legal Personality due to being born in accordance with special laws, a tax number (NT) for identification and taxpayer responsibility will be assigned before the tax administration.

This includes:

• Non-profit associations
• Horizontal Property (Condos/PH)
• Board of Co-owners
• Trusts
• State Entities
• International Organizations
• Cooperatives, Unions
• Political Parties
• Consortia
• Companies without Legal Personality

Let’s look at the requirements the DGI requests in each case:

• Entities constituted abroad: A certificate or articles of incorporation of the entity, duly apostilled, must be provided. The documentation must be in Spanish or translated by a Certified Public Translator. The application must be signed by the legal representative of the company along with a copy of their ID.
• Foreign entities purchasing shares: The certificate of incorporation of the company must be presented, duly apostilled and translated into Spanish if necessary, to prove its existence and legal representation. Additionally, the share purchase agreement is required (notarized and signed by the legal representative), as well as a Power of Attorney or formal request signed by them, in compliance with Article 170 of the Tax Procedure Code.
• Horizontal Property Co-Owners’ Boards (PH): The certificate of constitution of the horizontal property registered in the Public Registry of Panama must be attached, as well as a copy of the ID or passport of the representative of the Board of Co-owners.
• Real Estate Trusts: The notarized trust contract must be attached, along with a copy of the valid ID or passport of the legal representative or settlor, and a Power of Attorney or request signed by the legal representative, pursuant to Article 170 of the Tax Procedure Code (CPT).
• Movable Property Trusts: The public deed or trust contract of the movable property must be presented, together with copies of the valid ID or passport of the legal representative, the buyer, and the seller, as well as a Power of Attorney or request signed by the legal representative according to Article 170 of the CPT.
• State Entities: A copy of the Law or Decree of constitution of the entity must be presented, along with a copy of the valid ID of its director and a request signed by the director or the person assigned as in charge.
• International Organizations: A memorial (petition) addressed to the DGI requesting the tax number (NT) must be presented, indicating the name of the beneficiary and signed by the contracting state entity, along with a copy of the valid ID of the director of said entity, a copy of the passport details of the representative of the international organization, and the document linking both parties.
• Cooperatives: The certificate from the Panamanian Autonomous Cooperative Institute (IPACOOP) demonstrating the due registration of the entity must be presented, along with a copy of the valid ID of its legal representative. If declaring more than B/. 11,100.00, a certification from a Certified Public Accountant (CPA) must be included.
• Unions (Sindicatos): A copy of the Resolution or certification from the Ministry of Labor and Workforce Development that created the Union must be presented, along with a copy of the valid ID of the Legal Representative. If declaring more than B/. 11,100.00, a certification from a CPA must be included.
• Political Parties: A copy of the resolution or certification creating it, issued by the Ministry of Government, the Electoral Tribunal, or the institution granting its legal personality, must be presented, along with a copy of the valid ID of the legal representative. If declaring more than B/. 11,100.00, a certification from a CPA must be included.
• Consortia or companies without legal personality: The certificate or incorporation pact of the companies forming the consortium must be presented, along with the act or agreement demonstrating its creation. Additionally, a copy of the valid ID or passport of the legal representative of the lead company and the representatives of the other member companies (if applicable) is required, as well as a Power of Attorney or request signed by the legal representative, according to Article 170 of the Tax Procedure Code.

RUC FINCAS (Property RUC)

This procedure serves to present the breakdown of a property’s history, including general information, owner data, their email, and property values.

To specifically update the email address:

• Copy of the owner’s ID must be presented.
• If the owner is over 70 years old, a notarized authorization letter is required.
• If deceased, the heir must attach their ID, an authenticated copy of the court order closing the succession proceeding and awarding the estate (Auto de Sentencia), and the Deed.
• If the owner is a corporation, a copy of the legal representative’s ID is needed.

It is important to know that property values must be updated at the National Land Authority (ANATI), as the DGI only calculates the taxes. To request information in the system, you must have the Finca RUC (Property number + location code) and its verification digit.

How is the RUC obtained?

1. Prepare your Memorial: The application process for the Tax Number begins by filing a memorial, which is a formal document addressed to the DGI stating the request.

2. Observation: It is important to highlight that for applicants over 70 years of age, an additional requirement applies: they must attach an approval note signed by themselves. This measure seeks to ensure that the person performs the procedure voluntarily and with a full understanding of its implications.

3. Sworn Declaration (Affidavit): Upon completing the application, the interested party must accept a declaration under oath, confirming that all information provided, especially the fiscal domicile, is true and correct. This affirmation carries legal weight, and any falsehood may lead to sanctions stipulated in the tax procedure code. It is fundamental to understand that this procedure is completely free, as the DGI does not charge any fee for its management.

4. Identification: For the correct identification of the applicant, it is indispensable that the copy of the passport be totally legible, allowing the photo, name, and other data to be clearly seen. Furthermore, any document originating from abroad, such as contracts or certificates, must meet two key conditions to be valid in Panama: it must be apostilled to certify its international authenticity and, if not in Spanish, must be translated by a Certified Public Translator.

5. Online Processing: Finally, it is crucial to know that this procedure is exclusively digital. The application can only be made online through the e-Tax 2.0 portal, available on the DGI website. Face-to-face steps are not accepted; the entire process, from sending documents to finalizing the procedure, is managed through this platform.

If you need to update your RUC information, see our guide on updating RUC data in Panama (Spanish), or the Spanish-language version of this guide.