How are different expense categories treated in Panama for reimbursement?

Expenses Invoicing Requirements

In Panama, all transactions must be supported by invoices. All merchants in Panama are required to issue an invoice regardless of the amount and/or type of products.

Passports/Work Permits/Visa

Employees are responsible for ensuring that they have a valid and current passport/work permit/visa.

Transportation Expenses

No issues, can be claimed as non-taxable as long as receipt is supplied

Per diems

Per Diems Are Not Allowed

No receipt = non-compliant, payment through payroll with a gross-up

Air Travel/Bus and Train

No issues, can be claimed as non-taxable as long as receipt is supplied

Taxi, Cabify, Uber, and related apps

No issues, can be claimed as non-taxable as long as receipt is supplied

Car Rental

No issues, can be claimed as non-taxable as long as receipt is supplied

Car Parking Fees

No issues, can be claimed as non-taxable as long as receipt is supplied

Tolls

No issues, can be claimed as non-taxable as long as receipt is supplied

Other Business Travel-Related Expenditure

Event expenses (trade shows/conferences) - No issues, can be claimed as non-taxable as long as receipt is supplied

Travel Insurance

The Company will reimburse employees travel insurance expense exclusively for the period of the business trip and it should be pre-authorized.

Mileage and Fuel

For employees who have a vehicle, Velocity Global recognizes the mileage traveled and will be reviewed by the supervisor and approved by the direct manager. The declared distance will be measured through the Google Maps tool or other similar digital tool.

Accommodation

No issues, can be claimed as non-taxable as long as receipt is supplied

Meals (travel/events/during work)

No issues, can be claimed as non-taxable as long as receipt is supplied / Tips No receipt = non-compliant, payment through payroll with a gross-up

Client Entertainment

No issues, can be claimed as non-taxable as long as receipt is supplied / Tips No receipt = non-compliant, payment through payroll with a gross-up

Staff Entertainment

No issues, can be claimed as non-taxable as long as receipt is supplied / Tips No receipt = non-compliant, payment through payroll with a gross-up

Mobile Phone bills

Employees have the right to request reimbursement for the use of your personal mobile phones for work purposes. Employees can refund the amount of money they spend because of making calls from your personal mobile phone. Employees must submit an invoice in which a clear distinction is made between work and personal calls, for the customer to approve.

Broadband (Internet)

Upon supervisory approval, Velocity Global can reimburse these expenses where broadband internet is utilized for Business purposes.

Computer Equipment, Software, Office Space, Furniture, Phones, Other Assets

Internal fixed assets policy.

Furniture

Internal fixed assets policy.

Stationery

No issues, can be claimed as non-taxable as long as receipt is supplied

Gifts

No issues, can be claimed as non-taxable as long as receipt is supplied

Coworking and Office Rentals

No issues, can be claimed as non-taxable as long as receipt is supplied

Bank Charges

Bank or credit card charges incurred because of the

employee's delays claiming expenses will not be reimbursed.

Foreign Currencies

Each employee is responsible for obtaining the necessary foreign currency on international travel; commission expenses for currencies purchased on foreign travel will be reimbursed with the respective supporting documentation.

Annual subscriptions

No issues, can be claimed as non-taxable as long as receipt is supplied

Training Expenses

Upon approval of the supervisor, a membership will be reimbursed per employee, per association, when it is specifically related to the functions of their job, with respective supporting documentation.

Medical Claims/Health Check Up and related items/Medical Insurance

N/A

Exception and Other tpyes of expenses

N/A

Event expenses (trade shows/conferences)

No issues as long as event directly related to business. Please provide relevant receipts

Meals (travel/events/during work)

Meals on business trips are not taxable.

Di minimus expenses (Tips, no receipt)

N/A

Payroll Reporting

N/A

Additional Reporting

N/A

Review process

N/A