VATCalculate ITBMS in Panama
Work out ITBMS in Panama in one step: enter a net or gross price in PAB and get the tax amount and the total at 7%.
Panama · ITBMS
ITBMS rates in Panama
The standard ITBMS rate in Panama is 7%. Higher or special rates: 15%, 10%. This is below the average for Americas (14.2%). Worldwide ranking by standard rate: #151 of 159 countries.
Official source: dgi.mef.gob.pa. Rates checked: October 2026.
How to calculate ITBMS in Panama
Adding ITBMS to a net price
ITBMS = net × 7 / 100
gross = net × 1.07
Removing ITBMS from a gross price
net = gross / 1.07
ITBMS = gross − net
A common mistake is to take 7% off the gross price. That gives the wrong figure: the ITBMS inside a gross price is only 6.54% of it.
ITBMS examples in PAB
Common amounts with 7% ITBMS added:
| Net | ITBMS 7% | Gross |
|---|---|---|
| 10.00 PAB | 0.70 PAB | 10.70 PAB |
| 50.00 PAB | 3.50 PAB | 53.50 PAB |
| 100.00 PAB | 7.00 PAB | 107.00 PAB |
| 500.00 PAB | 35.00 PAB | 535.00 PAB |
| 1,000.00 PAB | 70.00 PAB | 1,070.00 PAB |
| 10,000.00 PAB | 700.00 PAB | 10,700.00 PAB |
Removing ITBMS from gross prices
| Gross | Net | ITBMS 7% |
|---|---|---|
| 53.50 PAB | 50.00 PAB | 3.50 PAB |
| 107.00 PAB | 100.00 PAB | 7.00 PAB |
| 535.00 PAB | 500.00 PAB | 35.00 PAB |
| 1,070.00 PAB | 1,000.00 PAB | 70.00 PAB |
Questions about ITBMS in Panama
What is the ITBMS rate in Panama?
The standard ITBMS rate in Panama is 7%. Higher or special rates: 15%, 10%.
How do I add 7% ITBMS to a price?
Multiply the net price by 1.07. For example 500.00 PAB × 1.07 = 535.00 PAB.
How do I remove ITBMS from a gross price?
Divide the gross price by 1.07. For example 535.00 PAB ÷ 1.07 = 500.00 PAB net; the difference is the ITBMS.
What share of a gross price is ITBMS?
At 7%, ITBMS makes up 6.54% of the gross price (7 ÷ 107).