Investing in Panamá es una publicación elaborada por la consultora Casin, referente del Outsourcing Administrativo, Contable e Impositivo de Panamá y por Santa Fe Associates Internacional para que cualquier interesado en invertir en Panamá tenga una primera información resumida sobre los aspectos que pueden interesarle de este país.

1. PANAMÁ
INVESTING IN PANAMA 2016

2. Casin & Asociados
PROYECCIONES 2012
WHY INVEST IN PANAMA
Investing in Panamá
 LOCATION in the center of the American continent
 FISCAL STABILITY to attract investments
 LEGAL INCENTIVES in order to promote investment and fair
trade: Multinational Enterprises Headquarters,Tourism Law,
Special Economic Areas (FreeTrade Zones)
 Most solid and reliable banking and FINANCIAL SYSTEM in the
region
 GOVERNMENT with stable democracy since 1989
 Large communications and infrastructure NETWORKS
 HUB of the Americas & Panama Canal

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PROYECCIONES 2012
ECONOMIC INDICATORS
Investing in Panamá
Capital Panama City
Area 0.075 million km2
Official language Spanish (Official)/ English (Commercial)
Life expectancy 73 years
Currency USD
Economic Growth 6.2%
Wealth: GDP Per Capita (2012 or latest available) USD 16.994
Unemployment rate 4.1%
Inflation rate 4.0%
Population (2012 or latest available) 3.8 million
Investment Grade BBB
Literacy rate 94.5%

4. Casin & Asociados
PROYECCIONES 2012
ECONOMIC INDICATORS
Investing in Panamá

5. Casin & Asociados
PROYECCIONES 2012
ECONOMIC PROJECTIONS
Investing in Panamá

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PROYECCIONES 2012
PUBLIC INVESTMENT
Investing in Panamá
 Estimated in 4,000M for 2017
 Expanded Canal
 Airport extension
 Metro Lines 2 and 3
 New Bridges over the Canal
 Renovation City of Columbus
 Health and educational projects

7. Casin & Asociados
PROYECCIONES 2012
ESTABLISHING A COMPANY
Investing in Panamá
1) Hire a registered agent which must be a lawyer or a law firm, who have to prepare
the Articles of Association. Directors can be foreigners.
2) Register at the Public Registry and pay Annual FranchiseTax (Tasa Única).
Payments can be made at the National Bank of Panama or at any cashier of the
Ministry of Economy and Finance.
3) Obtain a notice of operation ("aviso de operación") through the "Panama
emprende" website.
4) Register with municipality
5) Request an employers' inscription number from the Social SecurityAdministration
-The Social SecurityAdministration manages insurance programs for pension,
health, unemployment, and occupational accident and injury.
Principal business entities: These are the corporation, limited liability company,
limited liability partnership, general partnership, joint venture and branch of a foreign
corporation

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PROYECCIONES 2012
TAXATION
Investing in Panamá
• INCOMETAX
Local operations taxed at 25%)
Offshore operations are exempt
Special Regimes
WitholdingTax 12.5%
• VAT
Regular rate 7%
Witholding Agents (2016)
• CAPITAL GAINS (for negotiable instruments/ real property)
10% over gains
• AVISO OPERACIÓN

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PROYECCIONES 2012
TAXATION
Investing in Panamá
• DIVIDENDTAX
5% for offshore income
10% for local income (nominative shares)
20% for local income (bearer shares)
• SOCIAL CHARGES
Employer 14.75%
Employee 11%
Special Regimes
• OTHERTAXES
Municipality
Other fees

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PROYECCIONES 2012
TAXATION
Investing in Panamá
DOUBLETAXATION TREATIES

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PROYECCIONES 2012
TAXATION
Investing in Panamá
INFORMATION EXCHANGETREATIES

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PROYECCIONES 2012
TAXATION
Investing in Panamá
• INCENTIVES
• Multinational Headquarters (MHQ):
Licensed MHQs are exempt from income
tax on services provided to nonresident
entities that do not derive Panama-
source income, from dividend tax and
from PanamanianVAT on export services
provided to nonresidents that do not
generate taxable income in Panama.
Foreign employees working in Panama
for an MHQ are exempt from income tax
on their wages and other remuneration
that is not paid by the MHQ.

13. Casin & Asociados
PROYECCIONES 2012
TAXATION
Investing in Panamá
• INCENTIVES
• Tourism: A variety of tax incentives are granted to encourage
investment in new projects and activities relating to tourist
facilities, including an exemption from income tax, property tax,
import taxes and other taxes, depending on the amount of
investment and location.The incentives will expire between
2016 and 2020.
• Other Incentives: Incentives also are available in the Colon Free
Trade Zone, Howard (Panama Pacífico), Petroleum FreeTrade
Zones, etc.

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PROYECCIONES 2012
TAXATION – ANTI-AVOIDANCE RULES
Investing in Panamá
• FATCA - Foreign AccountTax Compliance Act (USA)
• TRANSFER PRICING REGULATIONS
• SUSPICIOUS ACTIVITY REPORT (SAR)
MILESTONES
• In 2015 the BEARER SHARES were forbidden
• In February 2016, Panama is removed from Gray List of Financial
ActionTask Force (FATF)
• Panama approves the MAC (Convention on Mutual
Administrative Assistance inTax Matters) along with more than
50 countries, effective as of 2018.

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PROYECCIONES 2012
COMMERCIAL TREATIES
Investing in Panamá

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PROYECCIONES 2012Investing in Panamá
WEBSITES OF INTERESt
Dirección General de Ingresos (DGI)
www.dgi.gob.pa
Panama Emprende
www.panamaemprende.Gob.pa
Ministerio de Comercio e Industrias (MICI)
www.mici.gob.pa
Momento Fiscal
www.momentoiscal.com/leyes

17. Casin & Asociados