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Doing Business in Panama.Pdf Photography by: Roberto Pereira /www.bobbypereira.com CONTENTS ACKNOWLEDGMENTS ...................................................................................................................................6 FOREWORD ........................................................................................................................................................ 7 BOARD OF DIRECTORS ................................................................................................................................8 A. PANAMA´S OVERVIEW ......................................................................................................................... 10 1. Country Economic Outlook ....................................................................................................... 14 2. Competitiveness Report ............................................................................................................ 14 3. Country Risk ....................................................................................................................................16 4. Doing Business Rankings ...........................................................................................................22 5. World Investment Report .........................................................................................................23 6. Container Port Traffic Index .................................................................................................... 24 7. Liner Shipping Connectivity Index (UNCTAD) .................................................................25 8. Latin American and the Caribbean Container Port Ranking .......................................26 B. OVERVIEW OF RELATIONSHIP BETWEEN PANAMA AND USA ..........................................27 9. Trade Promotion Agreement ..................................................................................................28 C. BUSINESS OPORTUNITIES IN PANAMA ..........................................................................................33 10. Logistics ......................................................................................................................................... 34 11. Agroindustry ..................................................................................................................................38 12. Financial Services ........................................................................................................................ 39 13. Tourism ...........................................................................................................................................40 14. Mining and Oil Prospects in Panama ................................................................................... 42 D. PANAMA BUSINESS REGULATIONS .............................................................................................. 43 15. Corporations and Legal Entities ............................................................................................ 44 16. Operation Notice ......................................................................................................................... 46 17. Income Taxation .......................................................................................................................... 49 18. Double Taxation Treaties ........................................................................................................ 49 19. Information Exchange ............................................................................................................... 50 CONTENTS 20. Immigration .................................................................................................................................. 50 21. Investor Permits & Visas ........................................................................................................53 22. Labor Law ..................................................................................................................................... 54 23. Intellectual Property ..................................................................................................................57 24. Customs Laws ..............................................................................................................................58 25. Unfair Business Practices Regulation ................................................................................. 59 E. INCENTIVE LAWS ......................................................................................................................................61 26. Multinational Headquarters .....................................................................................................62 27. Investments Made Under the Investment Stability Law ............................................. 63 28. Panama’s Film and Audiovisual Industry Incentives .................................................... 65 29. Call Centers .................................................................................................................................. 65 30. Tourism Incentives .....................................................................................................................67 31. Reforestation ............................................................................................................................... 68 F. SPECIAL ECONOMIC AREAS. .............................................................................................................. 69 32. The Colon Free Trade Zone .....................................................................................................71 33. Panama Pacifico ......................................................................................................................... 74 34. City of Knowledge ......................................................................................................................77 35. Baru Special Economic Area ................................................................................................. 80 36. Tourist and Multimodal Logistics Support Zone in Baru ..............................................81 37. Free Trade Zones ........................................................................................................................82 38. Petroleum/Fuel Free Zones ................................................................................................... 84 References & Bibliography ..........................................................................................................................87 Useful Websites and Contacts ..................................................................................................................90 6 | Doing Business in Panama ACKNOWLEDGMENTS The Doing Business in Panama is published Photography Credits by the American Chamber of Commerce and Tourism Authority of Panama (ATP) Panama Canal Railway Company Industry of Panama as a worldwide service Manzanillo International Terminal to potential investors interested in exploring Panama Pacifico Panama´s multifaceted economy and business City of Knowledge opportunities. This publication also provides Roberto Pereira (www.bobbypereira.com) information on free trade zones and special www.micanaldepanama.com www.shutterstock.com economic areas of Panama and an overview of the newly effective Trade Promotion Agreement between the US and Panama. It is the work of many members, staff and consultants, listed below, to whom we extend our special thanks and gratitude for a job well done. PanAmCham C.E. Maurice Bélanger, Executive Director Pilar V. Cerón, Trade & Investment Director Radu A. Serrano, Trade Specialist Susana Uranga, Marketing Director Goethals Consulting Corp. Irene Giménez, Partner Florencia Barreiro, Deputy Director of Marketing Copyright ©PanAmCham 2016. All rights reserved. KPMG Panama Published under the Creative Commons Attribution License 3.0 Luis Laguerre, Tax Partner https://creativecommons.org/licenses/by/3.0/ Jair A. Montúfar B., Tax Services Partner This compilation has been prepared with the purpose of providing general information only and does not intend to provide any person or entity with legal or business advice. It is recommended that professional advice be obtained before making decisions or SL Estudio de Comunicación developing any projects in connection with matters addressed Stephanie Lombardo, Director in this summary. Doing Business in Panama | 7 FOREWORD Talk about being in the right place in the right time, well that´s how I felt after moving to Panama back in 2010. I have witnessed how the country´s Private sector and Government have joined forces to keep Panama leading the region in economic growth. A test of this partnership was the successful construction of the new set of locks, which, this past June 26th, 2016, gained the respect of the international community. What seems impressive is how Panama continues to improve and lead the region. This year the World Economic Forum published the 2016-2017 Global Competitiveness Report, which ranked Panama 42nd of 138 economies, and the World Bank ranked Panama 40th (and 1st in Latin America) in the Logistics Performance Index. The country has made considerable progress in transparency, which promises to reduce the risk for investors. When you look in terms of opportunities for business, don’t limit yourself to the population of 4 million that the country has; Panama connects you to more than 300 million
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