On December 31, 2019, Law 122 was established, which amends Law 80 of 2012. Law 122 dictates incentive rules for the promotion of tourism activity. Investors who develop new tourism projects or expansions of existing ones will be able to apply for the tax credit.
This tax credit will be granted to investors who are purchasers of bonds, shares, and other financial instruments issued by tourism companies registered in the National Tourism Registry of the Tourism Authority of Panama (ATP).
The credit granted may be used annually from the second year of the investment in the tourism company up to a maximum amount equivalent to 50% of its income tax incurred, as long as such amount does not exceed 15% of the initial amount of the tax credit, and until 100% of the tax credit is consumed for a maximum period of 10 years counted from the date it was given.
Investors may apply for this incentive until December 31, 2025.
Read law 122 of 2019 here:
