New decree in Panamá boosts tourism activity

This new decree which regulates numeral 6 of article 8 of Law 80 of November 8 2012 that sets tax incentives...

Isaac Weatherborne 2020-12-09 09:29:13

Due to the COVID-19 pandemic which has affected the tourism industry worldwide, the President of the Republic, Laurentino Cortizo Cohen, and the Ministry of Commerce and Industry (MICI), Ramón Martinez, decided to sign Executive Decree # 319 of 3 December 2020, which achieve the creation of establishing a fiscal stimulation by releasing several taxes among which we have: income tax (ISR), import tax and capital tax on special tourist products, this act will help to more easily mobilize tourism investment and the creation of new jobs.

This new decree, which regulates numeral 6 of article 8 of Law 80 of November 8, 2012 that sets tax incentives, the Tourism Authority of Panama (ATP) and the National Government maintain in compliance with an obligation pending for 8 years with the sector, which was awaiting this regulation since the Law was created in 2012.

The stimuli or tax incentives draw a line that goes from the exemption of income tax for a minimum of 15 years on the activities that are called tourist and 5 years tax on the capital of the company, this is used for what the decree calls as product special tourism such as: sports tourism, ecotourism, private museums, agrotourism, health tourism, rural tourism and amusement or national parks.

Natural persons interested in developing the activities reflected and benefiting from the tax incentive will have to be registered in the National Tourism Registry, where they will have to fill out a registration form, which has an application for the undertaking addressed to the General Administrator of the ATP. ; in the same way, send plans signed by a suitable architect and by the corresponding municipality, regional location, architectural plan where the tourist activity will take place, instruction or training on the feasibility of the project, and others.

Upon signing this decree, it is also executed with the norms of the government of President Cortizo to access the investment through mechanisms that will enable the capitalization of plans that in turn will promote labor, providing economic stability to a large number of families Panamanians.

This is considered to be an important success that the government is carrying out to advance the reactivation of the economy, in this area through special tourism development ventures.

It is expected that this decree constitutes the execution of a charitable plan towards the creation again of a sustainable tourism that can be overcome between 2020-2025 in which it can be proposed to support entrepreneurship projects and private investment.

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