Law 223 of June 2021 establishes exemptions and tax incentives in environmental matters as of 2022 to promote sustainable business practices, the conversion of companies, and the development of the recycling industry in Panama.
The law provides that legal entities specialized in the operation of industrial recycling plants that the Ministry of Environment duly endorses will be exempted, for five years, from the payment of the following taxes:
Tax on dividends or participation quota distributed among national and international partners or shareholders.
Tax on the importation of equipment and machinery required for manufacturing.
How to benefit from this law?
The interested party must present an application before the General Directorate of Revenues, fulfill the previous procedures, and have the legal permits to carry on its economic activity.
This law does not apply to natural or legal persons whose replacement materials are synthetic plastic labeled as degradable, biodegradable, or any other plastic derived from petroleum and other hydrocarbons.
Nor does it apply to legal entities that collect recyclable materials for export since recycling must take place only in Panamanian territory.
To learn more about this law, visit here: