New Law for Colon Free Zone

The draft version of a new law for the CFZ establishes a tax treatment equal to that in other free zones.

Friday, November 14, 2014

The draft law has already been agreed by business associations, and is about to be taken to the Cabinet and then to the National Assembly.

Luis Germán Gómez president of the Association of Users of Colon told that "... Among the changes the document envisages is the creation of a single window and facilitation for companies under the regime of Headquarters of Multinational Enterprises (SEM by its initials in Spanish) which can be installed within the CFZ. "

Severo Sousa, ex president of the association said that "... There are issues that are merely about updating [the law] providing benefits as afforded in other zones such as Panama Pacifico which are not stipulated in Colon and the idea is for there to be parity, so that they receive the same benefits ..In regards to e-commerce he added "... The CFZ is ready for online sales, we've had huge conversations with people in the US who manage online sales and would like to have this business in Panama but it is not possible because it is not permitted. "

More on this topic

New Business Model for the CFZ

February 2015

A bill seeks to revive business activity in the Colon Free Zone, allowing for, among other things, purchases to be made via the web.

The main objective of the Ministry of Commerce and Industry of Panama is to modernize the way business is done in the Colon Free Zone and reinvigorate trade with measures that will facilitate "...

Not Raining, But Pouring in CFZ-Venezuela Trade

March 2014

Businessmen in the CFZ expect that the break in relations between the countries will further hinder the recovery of $2 billion owed ​​by Venezuelan companies.

On Wednesday, Venezuelan President Nicolas Maduro announced the severance of diplomatic relations with Panama," freezing "all further trade and economic relations with the Central American nation.

Colon Free Zone Calls for Same Exemptions As Multinationals

December 2013

Companies in the Free Zone are demanding the same tax treatment as that enjoyed by multinational companies who set up in the country.

In light of a lack of an agreement for the the Colon Free Zone to recoup the payments owed to it by Venezuela and lift the taxes imposed by Colombia on textiles and footwear coming from this area, users have proposed a series of measures.

CFZ Establishes Maximum for Rent Increases

October 2012

Users of the Colon Free Zone in Panama are no longer required to purchase the lot which they currently lease and if they choose to continue renting the amount charged in the first five years can not exceed 10% per year of what they currently pay.

At the end of the first five years, rents can be updated every two years according to the consumer price index, indicated the Zone's Users Association (AU in Spanish).