The accounting records are the data that clearly and precisely indicate the operations, both accounting and financial, of the legal entity, its assets, liabilities, and patrimony that serve to determine the financial situation with reasonable accuracy and allow the preparation of financial statements.
Supporting documentation are contracts, invoices, receipts, and/or any other documents necessary to support the transactions carried out by a legal entity.
As of Law 52 of October 27, 2016, as amended by Law 254 of November 11, 2021, all legal entities that do not perform operations that are perfected or consummated or take effect in Panama, as well as those that are engaged exclusively in being holder of assets, in or outside the Panamanian territory are required to keep their accounting records and maintain their supporting documentation.
The accounting records and supporting documentation must be kept for at least five (5) years from the last day of the calendar year in which the transactions were performed.
For more information, we invite you to download our newsletter here: