New Incentive for Foreign Investment; Establishment of new Multinational Headquarters.
In order to create more incentives that help the economy of our country河南福彩app官方下载, the Panamanian government has recently approved a law to stimulate the establishment of Economic Groups or Multinational Companies that wish to create branches or subsidiaries in Panama to perfect businesses that benefit their Economic Groups.
Due to its important Geographic position, because it’s considered a service country河南福彩app官方下载, because it uses the dollar as legal currency, because of the important fiscal benefits and incentives which it provides and for many other reasons, many Multinational Companies consider Panama to be a possible hub or connection center to carry out their businesses.
Law No. 41 of August 24th of 2007 offers the following tax benefits for multinational companies that chose this regime:
- Exemption on the payment of Income Tax for the company since Panama has a territorial taxation system and in these cases the source of the income generated would be abroad.
- Exemption on the total payment of the Personal Property and 河南福彩app官方下载 Transfer Tax, for operations carried out abroad.
- Exemption on the Tax on Income for social security and education tax, for the employees of the companies as long as their salaries come from abroad.
- Exemption on the Import Duty
- Migratory Benefits; Application for the Permanent Personal Visa of the SEM or the Temporal Personal Visa of the SEM of foreign workers that work in the branches or subsidiaries in Panama.
- Work Benefits; The companies that are under this law are exempt from having to follow the rule of 10% of foreign workers and 90% of national workers.
One of the most important requirements for these Multinational companies that wish to be under this legislation is that the assets of the Business Group must be equal to or above US$200 Million Dollars, in the case of establishing the Headquarters in Panama, the treasurer or secretary of the Corporation must provide a certification on the registered social capital of the Corporation, which may not be less than $ 2 million dollars.
If you require more information on this law, its benefits and application please feel free to contact河南福彩app官方下载