The complete list of all the incentives at Panama Pacifico
The Panama Pacifico Special Economic Area is a commercial community with endless benefits for companies that decide to settle in the project, as its main objective is to help them grow and expand. This is achieved, mainly, thanks to the fact that it was created by the Law 41 of 2004, which establishes a special legal, fiscal, customs, labor and immigration regime applicable to the area.
The incentives provided by Panama Pacifico fall into the following categories: specially incentive activities, tax incentives, simplified immigration, One-Stop Shop and special work incentives. Below, we bring you the complete list of what each of them implies.
Specially Incentive Activities
The main objective of these incentives is to promote the attraction of direct investment to Panama.
Headquarters and Services
- Headquarters of multinational companies according to the SEM Law *
- Back Office *
* For companies that are part of a group with 200M of assets or more, or to companies that provide services to 7 subsidiaries.
- Call Center *
- Capture, processing, storage, switching, transmission, and retransmission of data and digital information *
- Link of radio, television, audio, video and / or data signals *
- Research and development of digital resources and applications for internet and intranet networks **
* Tax incentive subject to verification that the activity is executed in Panama Pacifico, taking into account spending and employment.
** For activities involving intellectual property, the tax incentive is subject to the requirements of Law 69 of 2018 (Nexus Approach).
Logistics and distribution
- Logistic and multimodal services (vegan logo)
- Import, export and re-export of goods and sale of merchandise not manufactured in the area.
Maritime and aviation sector
- Maintenance, repair and reconditioning of ships.
- Services related to the aviation industry and airports.
- Sale of products and services to ships, airplanes and their passengers and crew, bound for ports or airports abroad.
High tech manufacturing
- Manufacture of high technology products, components and parts.
- Processing, manufacturing and assembly of products, components and parts, using high-tech processes.
- Film industry according to the incentives of Law 36 of 2007.
Companies registered in the area will be exempt from the following indirect taxes:
- Goods Import Tax
- Tax on the transfer of movable property and provision of services (ITBMS). **
** The tax applies only to services received from companies not established in the area or in other free zones.
- Any tax, tariff, rate, fee or charge regarding the movement or storage of fuel and other hydrocarbons and their derivatives.
- Stamp tax
- Property tax on land and commercial / industrial improvements, as well as the tax on the transfer of real estate, until December 31, 2029.
- Export tax, re-export of any type of goods.
- Withholding taxes or charges applied to payments to foreign creditors; for financing or refinancing granted to companies in the area and for the financial leasing of equipment.
- Subject to the company’s annual capital tax, at a rate of 0.5% per year up to 50K.
- Subject to income tax, dividend, complementary, remittances or transfers abroad, except those dedicated to specially incentivized activities.
Integrated System of Procedures for the management of permits applicable to the operations of companies. 17 government offices on site, saving your company time and money.
- National Migration Service
- Ministry of Labor and Labor Development (MITRADEL)
- National Customs Authority
- Social Security Fund (CSS)
- Municipality of Arraiján
- Ministry of Environment
- Arraiján Fire Department
- Ministry of Housing and Land Management (MIVIOT)
- Ministry of Health (MINSA)
- Panamanian Food Safety Authority (AUPSA)
- Land Transit Authority (ATTT)
- Ministry of Agricultural Development (MIDA)
- Ministry of Public Works (MOP)
- Institute of National Aqueducts and Sewers (IDAAN)
- Civil Aviation Authority
- Fixed overtime rates (25%) and work on days off (50%)
- Payment in night and mixed hours per hour actually worked.
- Flexibility to establish a weekly rest day other than Sunday.
- Percentage of legally permitted foreigners attend only the number of workers, without salary considerations.
- Justified cause for dismissal due to losses and / or market fluctuations.
- Single Window
- One-Stop Shop for expedited management of visa procedures and work permits for foreign workers.
- Special visas for investors and workers
- Visa benefits extend to immediate relatives: spouse, dependent children up to 25 years, dependent parents over 62 years.
- One-time, tax-free import of any item for personal or domestic use (up to 100K)
Tax exemption for manufacturing, import, export, logistics and telecommunications activities.
Guarantee of not being affected by legal changes adopted during the ten (10) years following the registration of the company in the area.
As you can see, this is the (largest) complete list of incentives that Panama Pacífico provides exclusively to the companies that operate in the project. Contact us today if you are interested in being part of our project to enjoy all these advantages that you will not find anywhere else!