It was recently approved by Law 99 of October 11th, 2019, a tax amnesty that condones the payment of interest, surcharges and fines of taxes in arrears (taxes, fees and special contributions) and owed by taxpayers, as well as fines for late returns or omissions of any taxes under the jurisdiction of the General Directorate of Revenues.

Natural and legal taxpayers and real property shall be eligible with taxes caused and delinquent as of June 30th, 2019. Therefore, these are included in the amnesty law:

1. Those who maintain payment arrangements as of the effective date of the law;
2. Taxpayers, withholding agents and other persons responsible for taxes;
3. Taxpayers, with pending proceedings, prior abandonment to then comply with the payment of the obligation.

This does not include proceedings for administrative tax evasion or criminal tax fraud.

The amnesty shall proportionally condone the interests, surcharges and fines if paid as follows: (*)

1. 100%        …………………    if paid in October and November 2019
2. 95%        …………………    if paid in December 2019
3. 90%        …………………    if paid in January 2020
4. 85%        …………………    if paid in February 2020

The following reports, which were due by June 30th, 2019, are exempted from their respective fines:

1. Report of Donations received
2. On-Declaring Taxpayers (NGO) Report F-27
3. Payroll Report 03-F3
4. Report of Retirement Fund, Pensions and Other Benefits F-40
5. Insurer’s Report-Certification of Medical Expenses by Insured F-41
6. Certification of Interest on Resident Non-Preferential Mortgage Loans F-42
7. Report on purchases and imports of goods and services F-43
8. Credit Card Sales Report (VTD) F-44
9. Transfer Pricing Report F-930
10.   Affidavit of remittances abroad presented by SEM companies and by companies in Panama Pacifico
11.  Any other affidavit, omitted or report.

Those who made a payment agreement or arrangement prior to this law may abandon it and avail themselves to the benefits of the law. Likewise, they shall be able to make a payment agreement paying 25% of the nominal tax and the surcharges, interests and fines shall be condoned in the same proportion and periodicity as indicated in the section above. (*) However, the payment arrangement may not exceed the deadline of 30th June 2020.

The tax debts already prescribed shall be applied in the application for acceptance of the moratorium upon request of the taxpayer at the time of paying their debts through the website, personally or through an attorney-in-fact.

Fines for late declaration of improvements made to a real property are included if the public deed with the improvements declared and registered at the Public Registry is submitted to ANATI.

All formalities must be managed with the NIT or through a legal attorney-in-fact.

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Any traveler that wishes to bring his pet to the Republic of Panama may do it, provided that he complies with the requirements established by Law 23 of July 15th, 1997, law which empowers the Ministry of Agricultural Development to regulate this matter.

All the owners which enter their pets (cats and dogs) to the Panamanian territory must submit the following documentation:

1. Vaccination Certificate (Rabies, Distemper, Parvovirus, Leptospirosis, Hepatitis)
2. Good health certificate issued by the attending veterinarian

     Both documents must be authenticated by the Panamanian Consul in the country of origin or legalized by Apostille.

The pet owner must notify the pet´s arrival three (3) days in advance by means of a form called “Domiciliary Quarantine Application Form”. This form could be obtained in this site Click here

Upon arrival at the Tocumen International Airport, the traveler must file the aforementioned documentation before a Health Ministry representative at the offices located at the Customs area. There the following must be paid:

1. US$130.00 for each animal, which corresponds to the cost of the domiciliary quarantine formalities. This payment must be in cash.
2. US$1.00 for the license application form.
3. US$5.00 for the Phytosanitary license.
4. US$10.00 for the veterinary inspection.

It is a duty of the carriers, whether land, sea or air, to demand to the interested parties (pet owners) all the requirements established by the Ministry of Agricultural Development. In case of not fulfilling this requirement, the carriers shall be fined. These fines range between US$100.00 up to US$100,000.00, depending on the seriousness of the offence, the damages incurred, aggravating or extenuating circumstances of the offence, social and economic repercussion, as well as the reoccurrence of the offender.

Discounts for vessels which are enrolled before December 31st, 2015

We are pleased to announce that the resolutions of the General Directorate of Merchant Marine No. 106-65-DGMM and 106-66-DGMM with significant incentives for the maritime sector have been published in Official Gazette No. 27628 of September 24th, 2014 which we share as follows:

IMPORTANT ISSUES OF THE RESOLUTION No. 106-65-DGMM

As of September 17th, 2014 until December 31st, 2015, all vessels of new construction with a registered gross tonnage above 10,000 and built in shipyards located in Japan, Hong Kong, People’s Republic of China, Singapore, South Korea del Sur, Taiwan, Philippines, Indonesia, Vietnam, France, Germany, Norway, Holland and Italy. The same benefit shall apply to all new built MODUS. For those vessels of new construction which do not comply with the above, other incentives shall apply.

Discounts shall be granted up to 100% on the Registration Fee, Annual Consular Fee, Casualty Investigation Fee, Inspection Fee, Fee of 0.03% per each Net Tonnage.

IMPORTANT ISSUES OF THE RESOLUTION No. 106-66-DGMM

Up to 100% discount is granted for the term of two (2) years, to all those vessels which register in the Panamanian Merchant Marine, as of September 17th, 2014 until December 31st, 2015 regarding the Registration Fee, Annual Consular Fee, Casualty Investigation Fee, Fee of 0.03% per each Net Tonnage.

This discount or waiver shall be granted under certain conditions such as:

• Have been previously registered within the Panamanian Merchant Marine;
• Have a Registered Gross Tonnage over 10,000 (GT);
• Less than 10 years of construction;
• Vessel is not listed neither on the MOU Detention List nor on the Security Council of the UN;
• The deletion of the Vessel before the Panamanian Registry was not due to causes affecting national interests.

Vessels which benefit from this discount must remain registered for a period of five years in the Panamanian Registry. In the event that a vessel is deleted before said term, it shall pay all fees and charges discounted.

Among other considerations, it is important to emphasize that these discounts (both resolutions) shall only apply for one year period from the enrollment, as long as the vessel is not enrolled after December 31st, 2015.

Kindly contact our experts in Maritime Law to learn more about this subject bd@icazalaw.com.

ICAZA, GONZALEZ-RUIZ & ALEMAN, is pleased to announce that our partner, Gabriela Tejada de Britton, has been listed as leader in the IP Section of THE BEST LAWYERS INTERNATIONAL® 2015 edition, Panama Chapter.

This recognition is based on a peer review process regarding her IP practice and professional abilities. Gabriela Tejada de Britton is responsible for the Intellectual Property Division of our firm, which provides outstanding legal advice on trademarks, patents, utility models, industrial designs, slogans, copyrights, trade and domain names, and has attracted a prestigious clientele throughout the commercial, services and industrial sectors”

The International Trademark Association’s 2015 Leadership Meeting in Panama to be its first major event in Latin America

Phoenix, Arizona – November 13, 2014 – The International Trademark Association (INTA) announced today that its 2015 Leadership Meeting will take place in Panama City, Panama. INTA’s Leadership Meeting convenes the global trademark community’s key decision makers. Its 2015 Leadership Meeting will be the Association’s first major event in Latin America. INTA CEO Etienne Sanz de Acedo made the announcement today during the Opening Ceremony of the 2014 Leadership Meeting in Phoenix, Arizona

In explaining the choice of Panama, Mr. Sanz de Acedo discussed the significance of the Panama Canal expansion, and its impact on global trade and on the global trademark community. The existing locks allow the passage of cargo ships that can carry up to 5,000 20 foot containers. The expansion of the canal includes the construction of locks that can cater megaships carrying up to 12,600 containers. This will effectively double the canal’s annual capacity from 300 million PCUMS (Panama Canal Universal Measurement System) tons to 600 million PCUMS tons. “It will, no doubt, improve the economics of scale for the maritime shipping industry with a ripple effect on all industries that rely on long distance maritime shipping,” said Mr. Sanz de Acedo.

“The expansion of the Panama Canal represents an extraordinary shift in how the global economy operates,” said INTA President Mei-lan Stark (Fox Entertainment Group). “The 2015 Leadership Meeting will provide leading intellectual property attorneys and business people from all over the world with a unique opportunity to see the canal first-hand at this pivotal moment in its history. Indeed, the expanded canal is going to be a global game-changer, and we will be there to witness it.”

The decision to take the Leadership Meeting to Panama in 2015 is in accordance with the Association’s continuing goal of internationalization, and to better serve its global membership. INTA hosted its first major event outside the United States in 2003 when it took its Annual Meeting to Amsterdam. In 2008, the Annual Meeting returned to Europe with another successful Annual Meeting in Berlin. Then, in May 2014, the Association took the Annual Meeting to Hong Kong, its first major event in Asia. More than 8,600 trademark practitioners from over 140 countries attended the event, making it INTA’s largest Annual Meeting outside North America.

INTA’s Leadership Meeting brings together its leadership and member volunteers once a year to advance the Association’s objectives and goals, to plan the coming year’s activities and events, and to look to the future of INTA. The meeting includes an advanced-level educational program, providing members with valuable information on the latest developments in trademark law. The occasion also provides INTA’s leaders with an opportunity to exchange ideas, conduct business and to network with colleagues from around the world. With over 1,300 INTA member volunteers from 77 countries attending, the 2014 Leadership Meeting is the largest to date.

About INTA

The International Trademark Association (INTA) is a global association of trademark owners and professionals dedicated to supporting trademarks and related intellectual property in order to protect consumers and to promote fair and effective commerce. Members include more than 6,400 trademark owners, professionals and academics from more than 190 countries, who benefit from the Association’s global trademark resources, policy development, education and training, and international network. Founded in 1878, INTA is headquartered in New York City, with offices in Brussels, Shanghai and Washington, D.C., and representatives in Geneva and Mumbai. To learn more about INTA, please visit www.inta.org.

This press release can be found here on inta.org.

http://www.inta.org/Press/Pages/LM2015_Panama_En.aspx

ICAZA, GONZALEZ-RUIZ & ALEMAN, Member of 2015 INTA’s Leadership Meeting Project Team.

New provisions applicable in relation to the consolidated supervision to the banking groups by the Superintendence of Banks of the Republic of Panama.

Recently, the Banking Authority issued Agreement 7 of 2014, whereby a number of parameters is established for the consolidated supervision of what the law calls Banking Groups, defined by the Banking Law as those “… constituted by bank holding company and its subsidiaries at any level whose predominant activities consist of providing services in the banking or financial sector; including nonbanking subsidiaries of the latter, which, in the opinion of the Superintendency, are operating under common management, either through a bank holding company or by different participations or agreements.”

The new regulations have as scope of application the Banking Groups upon which the Banking Authority exercises exclusively the consolidated supervision of origin, this being understood as the one applicable to Panamanian Banks and banking groups consolidated in our country.

Within the main parameters developed by the Agreement, we outline the following:

• Requirement to maintain a functional structure of Corporate Governance, which secures a strategic orientation, describing the main elements of good corporate governance, in accordance to the Superintendence of Banks standards.
• Establishes the sixteen (16) responsibilities applicable to the members of the board of directors of bank holding company, subject to Agreement 7 of 2014.
• Application of appropriate internal control systems.
• To create an Audit Committee, responsible for the permanent evaluation and follow-up of the group audit. The Agreement details the duties of the abovementioned Committee, that is, very important duties are assigned to it in an imperative way which starts with the verification of Internal Control.
• To develop parameters which secure professional and suitable execution of internal audits pursuant to international standards and best practices.

In addition to the aforementioned, it is specifically developed the profile of the directors and officers of a Banking Group: recognized moral and economic solvency and, in our view the most relevant, incompatibilities applicable to them to be appointed in those offices. For example, it is noted that the Superintendent shall obtain the necessary information about the directors, officers and executives nominated for the administration of the Banking Group, in order to assess individually each of them regarding their experience in financial business, professional competence, moral integrity and relevant background.

We deem necessary to note that the regulatory standards set forth in this Agreement is intended to strengthen the areas of concentration of risk, definition of related parties and its limits of concentration consolidated with these, as well as its exceptions.

Due to the extent of the provisions, it is not feasible to expose a comprehensive analysis of the Agreement. However, we remain at your disposal to answer inquiries about its scope, authority queries regarding the construction and drafting of Handbook of Corporate Governance, review of Handbook of Risks, among other.

Law 33 of July, 2010 modified by Law 52 of August 28th, 2012, Resolution No. 201-10860 of August 26th, 2013 and Executive Decree No. 958 of August 7th, 2013 regulate the subject of Tax Residency in Panama.

In our country, the tax residency certificates in principle are only applicable to residents of countries with which Panama has subscribed Double Taxation Treaties. Currently these countries are: Mexico, Barbados, Qatar, Spain, Luxemburg, Netherlands, Singapore, France, Korea, Portugal, Ireland, Czech Republic, United Arab Emirates and United Kingdom.

Pursuant to the current legislation, natural and legal persons must solely prove their tax residency based on evidence which is regulated and duly acknowledged by the Authority.

The legal person may prove its tax residency in Panama in two (2) ways, evidencing the following:

1. That it has means of direction and administration in the Republic of Panama.
2. That it has a Notice of Operations in force.

In the case of a natural person, the tax residency certificate may be obtaining proving any of the following assumptions:

1. That it has economic interests in Panama, submitting an original letter of employment issued by a qualified person of the employer company of the foreigner. In case of independent investors, a copy of the income tax return in Panama must be submitted and prove that the applicant has stayed in Panamanian territory for more than 183 days, alternate or continuous, during a tax year or in the immediately preceding year.
2. That a centre of vital interests of the person is maintained in the country, evidencing that he has established his main house in the Panamanian territory through a lease contract or property deed and submitting an utilities invoice (water, electricity, telephone) under the name of the person who requests the certificate.

Once the natural person had proved before the Competent Authority that it has its tax residency in the Panamanian territory, the International Taxation Directorate shall issue a resolution together with the certificate, where it is confirmed that the same is subject of taxation in Panama and may mitigate the double taxation in the other contracting country filing the certificate before the corresponding authorities.

You may contact us to extend the corresponding information, as well as to detail the requirements set forth by our legislation to request a Tax Residency Certificate.

In the framework of the “IV Oakley Enforcement Meeting” event, the renowned and prestigious trademark OAKLEY awarded ICAZA, GONZALEZ-RUIZ & ALEMAN with recognition for its valuable work in the Panamanian and regional market regarding Trademark Protection. The awards “OAKLEY Excellence Award 2014″ and “OAKLEY Intelligence Award 2014″  were received by our Division of Trademark Protection.

• Panama´s economy grew 6,2%
• Fitch Ratings reaffirms investment grade
• New Expansion Project
• Fourth Bridge over Panama Canal
• Expansion Project to 88%
• ICAZA in IBA annual Conference – M&A
• New regulations for broker-dealer houses
• $1.25 Billion in Global Bonds
• The Panama Canal between the world´s most ethical companies
• OAKLEY delivers awards to ICAZA

In recent days, Oakley celebrated its IV OAKLEY ENFORCEMENT REGIONAL MEETING in Panama, being ICAZA, GONZALEZ-RUIZ & ALEMAN, the host firm. This event was attended by representatives of the most prestigious firms in the region, responsible for the protection of the Oakley brand in their markets.

Within the framework of the event Oakley presented the “OAKLEY Excellence Award 2014” and the “OAKLEY Intelligence Award 2014”, being Icaza, González-Ruiz & Alemán awarded with both awards.