![]() Regime Law: Recent Amendments recent changes in order to enhance the advantages offered to multinational headquarters for establishing and operating offices in Panama. The government, by the publication of Official Gazette No. 28641 on the 25th of October 2018, has enacted Law 57 of 2018 to amend Law 41 of 2007, which created a special regime for the establishment and operations of offices of multinational headquarters and created the Commission of Offices of Multinational Headquarters. These amendments consist of adding several provisions enhancing the scope of their activities and making their operations more competitive and attractive, and went into effect in January 2019. follows: 4 of Article 4 of Law 41 of 2007 are extended to the provision of technical and financial assistance and other kinds of support to legal entities of the same enterprise group, including, without limitation, financial management services, risk analysis, due diligence compliance, custody and filing documentation, document and data processing center, treasury services and loans between entities of the same group. a multinational legal headquarters establishing an office in Panamanian territory is to provide services to the enterprise group to which it belongs. 12 of Law 41 of 2007, the following are the parameters required to be considered by the Commission for Offices of Multinational Headquarters in order to grant the License of Office of Multinational Legal Headquarters: engaging in; operation expenses of the Office of the Multinational Headquarters in in accordance with the nature of the business it is to engage in; and may only engage in activities that render income subject to the fiscal provisions of Law 41 of 2007. following modifications are stipulated: Office of Multinational Headquarters shall be five percent. income deducting expenses incurred in salaries and remunerations of all of its employees, including those employees who are exempt from income tax. taxable income earned in the Republic of Panama for services provided to non-residents, as well as taxes retained by taxpayers of the Republic of Panama since that income tax may be credited to its income tax. Headquarters shall have to pay at least 2 percent of the income tax, but the credits may not be applicable to other subsequent fiscal periods and are not to be reimbursed. that increase the profitability of the commercial operations of the Quijano & Associates. Her practice focuses on immigration, commercial law, labor law, litigation and intellectual property. Salduba Building, Third Floor East 53rd Street, Urbanización Marbella Panama City, Panama quijano.com |