Housing of up to $ 120,000 will not pay tax

  • critica.com.pa

The Ministry of Economy and Finance introduced, on Wednesday, the bill by which the property tax is reduced. The measure must be approved in the Assembly and will be in effect from 2019.

Housing with a value less than $ 120,000 will be exempt from the payment of property tax. The measure is provided in a bill that will be introduced by the Ministry of Economy and Finance (MEF) today before the National Assembly and which was approved on Tuesday in Cabinet Council.

Minister of Economy and Finance Dulcidio De La Guardia announced this on Wednesday, and in this way the government increases the range of houses that will not pay tax.

Currently, the exception only applies to homes with a value less than $ 30,000.

The bill also provides a reduction of tax payment in the different ranges of value of the houses that distribute tax collection.

Tax exemption only applies for the houses considered as tributary family patrimony; that is, the main residence of the family. The bill also provides that this type of house will not be subject to revaluations by the State, said De La Guardia.

As for homes that exceed $ 120,000, De La Guardia said that their owners would also benefit from the bill, as they will only have to pay for the excess cost of ownership.

This means that with the new rate, homes with a cost higher than $ 120,001 and up to $ 250,000 will have to pay 0.60% on the tax base surplus of $ 120,000. For example, a $ 150,000 home would be paying 0.60% of $ 30,000.

Housing that exceeds $ 250,001 must pay 0.90% on the surplus of $ 120,000.

The range of houses with tax exemption, as well as the new tariffs, will come into force in 2019.

Minister De La Guardia added that in order to obtain the new tax benefits 'no updating of the cadastral values of the main house is required'.

The owners of the property should only make a 'simple request' to the Directorate General of Revenue (DGI) of the MEF, accompanied by the requirements that will be established, by an executive decree.

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