Tax incentives in Free Trade Zones

Our tax practice advises companies seeking to establish themselves within the various special tax regimes offered by Panamanian legislation, allowing them to benefit from a wide range of tax incentives, including:

• Income Tax Exemption: Companies enjoy an exemption from income tax, except for those registered as Multinational Company Headquarters, which are required to pay a rate of 5% on the services they provide

• Exemption from Import Duties: Companies are exempt from import duties on products, merchandise, equipment, or goods

• Sales Tax Exemption: There is a tax exemption on the Transfer of Movable Goods (ITBMS)

• Exemption from Commercial License: Companies do not need to pay for commercial licenses

• Exemption from Export and Re-export Taxes: There are no taxes on the export or re-export of any product, merchandise, equipment, or goods

• Exemption from Complementary Tax: Companies benefit from an exemption from complementary taxes

• Exemption from Hydrocarbon Movement Taxes: There are no taxes, rates, tariffs, duties, or charges on the movement of hydrocarbons

• Real Estate Tax Exemption: Companies are exempt from real estate tax on land and improvements

• Exemption from Offshore Income Taxes: There are no taxes on offshore or foreign income

• Exemption from Electronic Fiscal Device Requirements: Companies are not required to use electronic fiscal devices

These incentives can significantly enhance the operational efficiency and profitability of companies operating in these special regimes.