Panamanian President Laurentino Cortizo, sanctioned the law that creates the Special Regime for the Establishment and Operation of Multinational Companies for the Provision of Services related to Manufacturing.
After the <a href="https://centralamericadata.com/en/article/home/Aval_a_ley_de_Empresas_Multinacionales" target="_blank">deputies of the Panamanian Assembly approved in the third debate last month the bill that aims to promote investments in this context of economic crisis that derives from the outbreak of covid-19, the President of the Executive sanctioned the regulation on August 31, 2020.
Deputies of the Panamanian Assembly approved in third debate the bill creating the Special Regime for the Establishment and Operation of Multinational Companies for the Provision of Services related to Manufacturing.
The services of these multinationals will be able to be developed in different provinces of the country and will work in product manufacturing, equipment machinery, product packaging services, machinery and equipment, the Assembly informed.
So far this year, 17 new company licenses have been approved in the country under the Multinational Companies Headquarters regime, a figure that is higher than the 7 that were reported throughout 2018.
In addition to the 17 companies that already obtained their licenses in 2019, there are 7 other companies that are in the phase of evaluation by the Commission of Headquarters of Multinational Enterprises of the Ministry of Commerce and Industry (MICI).
Millicom CAM SEM, S.A. and Upfield NL Holdings Two B.V., were the companies that were recently established as Multinational Companies Headquarters in the country.
From the MICI statement:
MICI 13-08-2019. The Commission of Headquarters of Multinational Enterprises (SEM) of the Ministry of Commerce and Industries (MICI) recently approved the establishment of two new multinationals in the country, after complying with all the requirements set forth in the Law.
Modifications made to the law regulating the SEM regime in the country, would have been the reason for reporting during last year the establishment of only seven new companies of this type.
Among the reforms to the special regime for the establishment and operation of Sedes de Empresas Multinacionales (SEM) made in 2018, it is worth highlighting that companies must have a minimum number of full-time permanent employees, and in addition, a tax rate of 5% was imposed on the net taxable income derived from the services rendered.
Having a minimum of five full-time permanent employees is one of the requirements that companies must meet in order to obtain a Regional Offices of Multinational Corporations license, if a bill from the Varela administration succeeds.
The bill presented by the Ministry of Commerce and Industries (Mici) to the National Assembly contemplates, among other things, the new conditions that must be met by companies seeking to obtain a license as Regional Offices of Multinational Corporations (SEM by their initials in Spanish).In addition, it details a proposed law reform, under which companies must generate annual operating expenses in the country of at least $500,000.
Six new foreign companies will be establishing their regional headquarters in the country, under the conditions of the Multinational Company Headquarters regime in Panama.
From a statement issued by the Ministry of Trade and Industry:
MICI 11-12-2017.Confirming once again the competitive advantages offered by the Panamanian isthmus as the great connection of the Americas to the world, six new companies will be establishing their regional headquarters in Panama, with a direct investment -only in its first year of operation under the SEM regime. - of more than four million dollars and the creation of some 200 jobs.
Within the conditions to operate under the Multinational Enterprise Headquarters regime in Panama, the requirement for a worldwide number of employees has been changed to instead include a requirement to have a presence in more than 40 countries.
From a statement issued by the Ministry of Trade and Industry:
The Ministry of Commerce and Industries (MICI) wishes to inform the public that the Multinational Enterprises Licensing Commission (SEM) has drafted and approved a new resolution replacing the requirement for a worldwide number of employees for a requirement to have a presence in more than 40 countries.Resolution 19-17 was repealed in its entirety.
GSK has obtained a licensed to operate under the Multinational Enterprises Branch scheme.
Sridhar Venkatesh, vice president and general manager for Central America and the Caribbean, explained to Laestrella.com.pa:"... from our SEM office we will run the site our Pharmaceutical Divisionfor Central America and the Caribbean and the site for our Demand and Substitution hub for Latin America. With this opening, there will now be more than 300 jobs that will be generated in the country. The projected investment for this project over three years is approximately $2 million."
The Chinese multinational Midea, already present in South America, plans to invest $30 million in expanding and reaching out to markets in Mexico, Central America and the Andean region.
The company Midea, founded in 1968 in Guangdong, China, believes that there is "...
Grupo Lala, Pandora and The Estee Lauder Companies are three of the companies who have requested approval to start operations under the SEM regime in the first half of 2017.
Prensa.com reports that "...The other companies that operate under the Multinational Enterprises Regime (SEM by its initials in Spanish) are Hazama Ando Corporation from Japan (advice on general construction and civil engineering services); Mondo Ibérica, S.A. from Spain (sports center facilities, from artificial turf, seating systems, to pavements, etc.); Elbert Software, from Argentina (licensing, import and export of enterprise application software and IT security)."
Protectionist measures that favor dominant firms in domestic markets only extend the inevitable process of globalization, making it more expensive for consumers.
Whether a milk is 'good' or not is decided by consumers themselves by evaluating its quality and cost.Milk has no nationality.It's just milk.
At the close of the first semester 13 new licenses will have been approved giving foreign companies the ability to operate under the Site of Multinational Corporation regime.
The companies that requested permission to set up in the country under the Site of Multinational Corporation (SEM) regime come from the United States, Denmark, Scotland and the Netherlands, among other countries, explained Trade Minister Augusto Arosemena.
The initiative aims to expand the scope of the Law on Multinational Companies to provide the same benefits to industrial companies who export their entire production.
In Panama discussion is taking place of a new law for Branches of Extended Multinational Enterprises (SEMA by its initials in Spanish), an extension of the law on Multinational Corporations known as SEM, in order to attract industrial companies with some similar benefits to those contained in the SEM.
Along with 31 other countries Costa Rica has signed an international agreement that supports the automatic exchange of information on multinational companies.
From a press release issued by the OECD:
27/01/16-As part of continuing efforts to boost transparency by multinational enterprises (MNEs), 31 countries[1] signed today the Multilateral Competent Authority Agreement (MCAA) for the automatic exchange of Country-by-Country reports. The signing ceremony marks an important milestone towards implementation of the OECD/G20 BEPS Project and a significant increase in cross-border cooperation on tax matters.
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