The inclusion of Panama in the Colombian government's gray list could mean surcharges on capital repatriation by investors in the country.
"If Panama is included on a (Colombia's) gray list, it will affect the Colombian investments that exist in Panama and which have a strong presence in banking and other industries, because they will pay a surcharge when they repatriate their profits," the outgoing Minister of Economy and Finance in Panama, Frank De Lima, said.
Oil in containers measuring from 1.7 to 2 liters can enter Panama duty-free for a year.
Through a Cabinet Decree, the Panamanian government has removed the tariff, for one year, on imports of soybean oil in bottles of 1.7 liters and 2 liters. It is established that other refined oils will incur a 10% tariff.
"... The decision to eliminate the tariff on soybean oil is because this product is part of the six foods that President (Ricardo Martinelli) announced will be sold at low cost in the so called jumbo fairs and jumbo shops," said Oscar Osorio, Minister of Agriculture.
Insurance companies must pay a tax of 2% to the National Treasury to be deposited in a special account belonging to the Fire Department.
From a press release from the Government of Panama:
The law aims to provide new revenue for the Fire Department of Panama (CBP by its initials in Spanish) and thereby make it able to cope with the need for more equipment.
The World Bank and the Government of Panama have signed off on a $100 million loan to improve the country's fiscal management and increase the efficiency of social protection programs.
From a press release published by the World Bank (WB):
The World Bank and the Government of Panama signed off on Wednesday on a loan agreement for $100 million to support the country's efforts to improve fiscal management and to increase efficiency in the social protection programs "Universal Scholarship", "100 to 70 "and" Network of Opportunities ", which together benefit over 925,000 Panamanians.
This was announced by President Martinelli at the opening of the XXIV edition of Capac’s construction trade fair ‘Expo Habitat.’
The 20-year tax exemption on land tax and building permits has not been applied since June 2009.
"Neither will it be applied to those projects which have not registered by the end of this year", added Prensa.com.
President Ricardo Martinelli invited construction companies and project developers to meet with the new Minister of Housing and Land Management, José Domingo Arias.
Authorities are considering lowering or eliminating the tax on fuel and replacing it with one for "luxury goods".
When explaining what would be considered a "luxury good", president Ricardo Martinelli referred to cable television and tv commercials.
Conep, the private enterprise council, believes that the proposed strategy must be analyzed, because 'it is not wise to solve a problem by creating another'.
The country completed 9 of 12 agreements required by the OECD to remove it from the tax haven gray-list.
The president, Ricardo Martinelli and his counterpart Lee Myung-bak took part as honorary witnesses to the signing of the Treaty for Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to income taxes between the two countries.
Alberto Vallarino, Finance Minister, is expected to present the tax reform today to the president’s cabinet.
The main objective of this project is to remove the Alternative Calculation for the Income Tax.
Newspaper La Estrella obtained a preliminary draft of the reform. It specifies that individuals earning up to $11.000 a year would be exempt from paying income tax, while those earning between $11.000 and $40.000 would pay 15%.
Trade activity in Panama's Colon Free Zone in the first 9 months of this year was 9.5% higher than the same period of 2008.
For September 2009, activity was 15% higher than the same month of 2009.
These good news come weeks after users of the Free Zone reached an agreement with Martinelli's administration regarding how many taxes they must pay.
Business website Americaeconomica.com reports: "These new taxes, to come into effect in the near future, are a 1% over equity, operation notices up to 50.000 balboas, 5% of distributed profits, 5% ITBMS in services provided in the Free Zone like rents, accountants, lawyers, security, cleaning, and 1% over mortgage loans".
In December, both countries will sign an agreement to prevent repeated taxation.
This was announced by Panamanian president Ricardo Martinelli upon his arrival from Italy.
Martinelli "...addressed the topic with Italian Prime Minister Silvio Berlusconi, and he promised to help him 'getting out of all the black-lists'", reported newspaper Prensa.com.
Businessmen from Colón Free Zone (ZLC) will negotiate an eventual tax hike with the government.
Free Zone entrepreneurs had scheduled a protest for today, rejecting the tax increase law project.
"Sources from the Association of Users of the ZLC state that the protest was canceled after receiving a phone call from Ricardo Martinelli", reported Americaeconomica.com.
Users of the Panamanian Colón Free Port (ZLC), will have to pay, as rent, 1% of the market value of their properties.
The adjustment also implies that "all the services, including third party rents from ZLC users, will pay ITBMS (Transference of Goods and Services Tax)", reported a press release by the Ministry of Economy and Finance.
From newspaper Prensa.com: "The reform will include opening a Tax Office in the ZLC, and companies from this free port will need to have an 'operation announcement' in the same conditions and rates that the rest of the companies in Panama".
The government of Panama informed that they will carry on retaking concessions not authorized by law.
After recovering the land reclamation project of Grupo F. last Tuesday, the Panamanian Government communicated that they will continue with these actions against companies not fulfilling their obligations to the State.
According to Prensa.com, government spokeswoman Judy Meana, "said that if companies comply with their obligations and get up to date in their payments, they won't have any problems. 'The comparison (equiparación in Spanish) law has neither name nor surname', she informed."
The 75% reduction of the flat rate will be applied to micro- and small-businesses that invoice less than $500,000 per year.
This measure will be enacted by President-elect Ricardo Martinelli in his first 100 days in government, and it entails applying tiered discounts of up to 75% of the flat rate paid by businesses that invoice less than $500,000 annually.