The bill approved by the Cabinet envisages an increase of 25% to 40% in tax credits for investment in manufacturing and agribusiness.
From a statement issued by the Presidency of Panama:
In order to expedite the process and create a program for industrial competitiveness to promote the sector's growth, generating investments and new employment positions for the economy, the Cabinet approved a bill that modifies and adds articles to Law 76 of 2009, dictating measures for the promotion and development of industry.
The year-end expiration of the Law on the Promotion and Development of Export and Maquila Activities makes it essential to adopt new rules to maintain and improve incentives for foreign investment.
The Guatemalan-German Chamber of Commerce (AmCham) believes that it is not only necessary to pass a law to maintain the exemptions and incentives under the existing legislation, but that the opportunity must be taken to improve and "...
Six months after the Industrial Promotion Law was approved, no companies have requested this document.
Investments in machinary, personnel and process development are eligible for the Industrial Promotion Certificates (CFIs in Spanish), which are requested from the Panamanian Ministry for Trade and Industry, in order to receive up to a 35% refund on the expenditure.
Panamanian industrial companies can now deduct up to 35% in taxes by using Industrial Promotion Certificates (CFI).
Companies who invest in machinery, staff and process development will be entitled to a 35% refund, by requesting Certificates of Industry Promotion from the Industry Ministry.
From Laestrella.com.pa: "The law states that the only companies entitled to the benefit are those engaging in manufacturing, agro industry and transforming sea resources, including micro, small and medium companies based in Panama. It also includes those working in gathering and transforming agricultural and forestry resources".
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