EMMA regime in Panama
Overview
EMMA (Multinational Companies for the Provision of Manufacturing-Related Services) is a special regime created to establish light manufacturing and repackaging logistics centers in Panama. This helps redefine the manufacturing and related services landscape. This regime offers a range of tax benefits, such as a reduced tax rate and tax exemptions. EMMA is designed to attract foreign direct investment and create jobs in Panama.
The EMMA strategic alliance is based on the synergy of talent, technology, and shared knowledge between the leading multinationals in the manufacturing sector. Through this pioneering collaboration, these companies have come together with the goal of maximizing quality and innovation in production, while minimizing costs and associated risks. From process optimization to the adoption of cutting-edge technologies, EMMA stands as an exemplary model of business cooperation in the era of Industry 4.0.
Sectors/industries that qualify for the EMMA program
The program is open to multinational companies that provide manufacturing-related services in Panama. Manufacturing-related services include:
- Manufacturing, assembly, maintenance, remanufacturing, and conditioning of products and equipment.
- Product development, research or innovation of existing products or processes, analysis or laboratory testing related to manufacturing services.
- Logistic activities such as storage and distribution of components necessary for the provision of manufacturing-related services.
Tax benefits
EMMA offers a range of tax benefits to multinational companies that provide manufacturing-related services in Panama. The tax benefits include:
- A total exemption from income tax for the first 5 years, followed by a 5% tax rate.
- Exemption from ITBMS on services provided to recipients outside of Panama.
- Exemption from import duties on materials and equipment.
Immigration benefits
- A 5-year visa for EMMA executives.
- A 3-year visa for EMMA technicians.
- A single window for the issuance of visas for EMMA workers and their dependents.
These visa benefits can help multinational companies reduce their costs and increase their profits.
Qualification requirements
- The company must be a multinational company.
- The company must have operations in Panama.
- The company must provide manufacturing-related services.
How to apply for an EMMA license
he company must submit an application to the Ministry of Economy and Finance of Panama. The application must include the following information:
- Company information.
- Information about the company’s operations in Panama, such as its location and the type of services provided.
- Information about the company’s income from manufacturing-related services.
The application must also be accompanied by the following documents:
- Articles of incorporation of the company.
- Company registration certificate.
- Balance sheet and income statement of the company.
- Company tax return.
- Letter of authorization from the company’s legal representative.
The Ministry of Economy and Finance will review the application and issue a decision within 60 business days. If the application is approved, the company will receive an EMMA license.
License validity period
The EMMA license is valid for a period of 5 years. The company may renew the license for additional periods of 5 years.
Do you have questions about EMMA? Contact us!
You can read more about the EMMA regime in Panama in our article. If you have a multinational company that is considering establishing operations in Panama, we recommend contacting us to learn more about the EMMA program. This regime can help you save money on taxes and increase your profits.
