Export Industries
Panama offers manufacturers located in an EPZ special fiscal incentives under Law No. 25 of 1992 and complementary measures.
The main export industries allowed in the EPZ are:
- Manufacturing
- Assembly (or maquila)
- Processing
- Telecommunications and High Technology Parks
The promotion/development and the operation of the EPZ are well-defined and the Law grants extensive power to the promoter to develop land; construct building and installations for all purposes; construct technical, medical, sporting, public service, transport and other centers; install and operate gas, energy, water, telecommunications and sewage systems, schools and other facilities; and construct and operate airports, ports, docks, cargo facilities, roads and other infrastructure, all subject to the applicable laws of Panama.
The new Law constitute the EPZ in 100% tax-free areas. As a consequence, both the promoter/developer and the export industries as well as any activity, operation, transaction, license, procedure, transfer of movable goods and real estate, purchase and importation of all equipment, spare parts, raw materials, and all goods and services required for its operations, shall be 100% exempted from national direct and indirect taxes, duties, levies, right and charges. It is worth mentioning that all tax exemptions are granted for an indefinite period.
Special labor law regulations are also contained in the Law applicable to employment contracts for a fixed period or work, productivity regulations, rotation of employees, vacations and others.
For these companies, there are
- no direct or indirect income tax
- no import tariffs on purchase of equipment or raw materials
- no taxes on the repatriation of profits
Similar incentives exist for oil and petrochemical companies located in the country’s Petroleum Free Zones as well as for Call Centers.
The new trend of foreign and local groups has been to create EPZ as Hi-Tech Parks.
The Inter Panama can represent you, or find you local partners, or provide consulting in different areas of a project, or raise venture capital, or recommend you to the leading lawyers in Panama.
For more information about Investment Opportunities, Consulting, Legal or other Services, please contact Inter Panama. |
