A reduction from 20% to 3% has been made on withholding tax on income from investments in securities traded on the local stock market.
From a statement issued by the Financial Supervisory Authority:
Recently, the Legislature approved a decree amending art. 158 of the Tax Code in order to decrease from 20% to 3% withholding tax to foreign persons or entities charged on income from investments in securities traded on the Stock Exchange in the Republic of El Salvador.
"Of the 4,115 GWh imported from Guatemala to Panama, more than 80% could have been obtained from the accumulated water on Lake Arenal in Costa Rica".
The lack of more and better transmission lines between Costa Rica and Panama prevents the sale of the surplus energy which it is foreseen will be generated in Costa Rica once operations start of the new generation plants Chucas, Torito, Capulin, Reventazón, Bijagua, Orosi and expansion of La Joya.
If the Treasury's proposal succeeds, interest on bank deposits would incur 8% to 15%, while for revenues generated by mutual funds, the tax would rise from 5% to 15%.
This unification is due to the fact that currently there are different taxes for similar types of income, therefore the tax is not neutral, according to the CEO of Taxation. In the case of surplus cooperatives and solidarity associations, the project proposes "... Keeping the current tax of 5% for amounts of income less than minimum wage exempt from tax. "
The government has decided to monitor and regulate the profit margin accrued by construction companies and real estate developers.
While the Association of Engineers and Architects (CFIA) argues that "... the profit margin of construction companies in the country ranges between 5% and 40%" ... ", employers in the construction sector and developers assert that they are betting on margins of between 5% and 15%.
In 2013 the geothermal plant belonging to the Ram Power Company generated revenue of $46.2 million and 424 thousand MW of net power.
The company that operates the San Jacinto-Tiziano geothermal plant and also exploitation rights to the Casita San Cristobal project presented its financial results for 2013, highlights of which include the financial performance of San Jacinto-Titian.
With a generating capacity of 300 MW, Enel Fortuna is one of the leading providers of electricity in Panama, with average annual earnings of $58 million in the last five years.
The recent financial statements submitted to the Panama Stock Exchange (BVP), for 2012, reveal that the company has achieved total revenues of $187.8 million, while last year the figure was $185 million.
They warn that if domestic prices are not adjusted and there is no guarantee to maintain the value of the local currency, they will not sell their cattle to local slaughterhouses.
Alvaro Fiallos, president of the National Union of Farmers and Ranchers (UNAG), is demanding that slaughterhouses adjust the price which has been kept frozen since late May last year at $2.97 per kilo in hot weight, and that they recognize the maintenance of the value of the cordoba.
The fall in interest rates has caused an increase in bond prices, encouraging holders to make profits.
During the first quarter of 2013, the stock market in Costa Rica grew by 18%, with the secondary debt market being the best performing, going from $1.34 billion in the first three months of 2012 to $3.459 billion in the same period of 2013.
The growth in earnings of 17 banks operating in Costa Rica is higher than credit growth and is four times the country's economic growth.
According to an article in Elfinancierocr.com, "The good performance has been achieved with only a 4% increase in administrative costs and without increasing the size of bank deposits. On the contrary, liabilities have decreased by 2%, a reduction that has been led by public banks. In conclusion, the entities are doing more with less. "
Panama’s equity financing costs (2.4%), together with those of El Salvador (1.6%) and Peru (2.0%) are the lowest in Latin America.
In the past 4 years the equity financing costs of the the National Banking System (NBS) in Panama have halved, going from 4.2% in 2007 to 2.2% in 2011, influenced by the international financial situation and low interest rates.