Over the years, Panama has positioned itself as an important logistic and business center in Latin America and the world. Due to its location, which facilitates the connectivity of international markets, and its tax incentives, the country has managed to attract corporations from different industries, leading to the development of highly relevant free trade zones, which provide certain advantages. For instance, the more than 360 companies in Panama Pacifico enjoy a competitive environment, created to facilitate their growth. In this article, we will describe the opportunities and Panama Pacifico benefits for corporations that plan to improve their operations and improve their profitability.
Panama Pacifico, An Important Business Center
Panama Pacifico is a special economic zone created by Law No. 41 of 2004. This legislation establishes an area of 2,005 hectares with a modern and secure infrastructure, strategically located on the west coast of the Panama Canal and with access to an internal airport, which provides unprecedented logistical advantages.
In addition to its physical benefits, its regulations provide incentives to companies in Panama Pacifico, as long as their activities are aligned with those promoted by law. This does not mean that only limited activities can be developed within the zone; in fact, any activity permitted in the country can be carried out in this Panama free zone. However, not all commercial activities receive tax benefits just for operating in the zone.
Panama Pacifico Benefits
Image retrieved from: www.panamapacifico.com/
Establishing and functioning in Panama Pacifico offers many benefits for companies, from tax and administrative incentives to advantages in infrastructure and quality of life for employees.
Tax exemptions
Companies in Panama Pacifico that follow the established requirements can access the following tax exemptions:
- Income Fiscal Obligation: Exemption on net taxable income obtained from activities, businesses and operations carried out within the Panama Pacifico Special Economic Area (APP).
- Tax on Dividends and Complementary Tax: Exemption in the withholding of profits or dividends paid to shareholders or partners.
- Tax on Remittances or Transfers Abroad: Exemption in payments of commissions, royalties, technical assistance or any other similar concept.
- Import Tax and ITBMS (VAT): Exemption for those companies rendering services related to professions regulated by current legislation.
Administrative and management facilities
Another Panama Pacifico benefit is the Integrated System of Procedures (SIT), a special mechanism that allows businesses to carry out formalities before government entities in a simplified manner, without the need to travel to different offices in Panama. In addition, the system offers exclusive legal and operational figures for companies in Panama Pacifico.
Due to these incentives, Panama Pacifico is consolidating its position as one of the most attractive special economic zones in the country, offering benefits and tax exemptions backed by law and a first-class logistical infrastructure.
Quality infrastructure
Companies in Panama Pacifico have a world-class infrastructure that facilitates their operation. This includes:
- Global connectivity: Access to conveniently located ports and airports for the export and import of goods.
- Industrial and commercial spaces: Offices and warehouses with indoor and outdoor spaces that adapt to the needs of each business.
- Advanced telecommunications: High-speed internet services and efficient telecommunications to guarantee uninterrupted operations.
Human talent and networking
Another important aspect for companies in Panama Pacifico is the possibility of attracting and retaining qualified human talent. The area has access to:
- Universities and training centers that allow for the continuous formation of collaborators.
- Nearby housing options, facilitating daily commuting and improving the quality of life of workers.
- Recreational spaces and high-level health services to guarantee the well-being of the business community.
Additionally, companies in Panama Pacifico, being next to other businesses in different industries, can connect and work easily with service providers such as call centers, technical support, internal management, logistics, and air and sea transportation.
Legal security and economic stability
Panama is recognized for its economic stability and legal security, which provides confidence to international businesses looking to increase their operations. Companies in Panama Pacifico can operate with the certainty that their investments are protected by a solid and transparent legal framework.
Establish Your Company in Panama Pacifico
Companies in Panama Pacifico find an ideal opportunity to grow because of its tax incentives, ease of procedures, modern infrastructure and access to qualified human talent. This area attracts more and more foreign investors and contributes solidly to the country’s economy.
If you want to access the different benefits and services in Panama Pacifico, Kraemer & Kraemer will provide you with the support and advice you need to establish and operate correctly in this special economic zone. Contact us to start your process and take your corporation to this important business center.
Related pages:
