By means of Law 412 of November 21, 2023, the Organic Law of the Colon Free Zone was reformed.
Objectives of the Law:
Equalization of Incentives:
The purpose of the Law is to equalize in the CFZ those incentives that currently coexist in the different special regimes of the country.
Inclusion of New Activities and Services:
The offer of services has been expanded to meet the economic needs of both companies using the CFZ and their potential customers.
New Activities Incorporated:
- Nearshoring
- Supply and Inventory Management
- Provision of Real Estate Services and/or Property Management
- Incorporation of High Technology Based Manufacturing Models
Tax Benefits for CFZ Users:
Income Tax Exemption:
On income derived from activities allowed under the regime, provided that the income is produced outside the national territory.
Exemption from the Tax on the Transfer of Movable Goods and the Rendering of Services:
Applicable to the users of the CFZ, with respect to:
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- Merchandise, products, equipment, goods, services and other goods in general introduced into the CFZ and whose final destination is abroad.
- Services rendered by the users of the CFZ to natural or juridical persons established inside or outside Panama.
- Services received by the users of the CFZ, except for the exceptions set forth in the Tax Code.
Exoneration of the Stamp Tax.
Exoneration on Commercial and Industrial Improvements:
Includes the real estate tax on land and improvements, as well as the real estate transfer tax.
Exoneration of Complementary Tax:
On the profits generated, with the exception of logistic and multimodal services that do not generate any transformation, which will pay the tax at the rate of 2% on the profits generated.
Exemption from Selective Consumption Tax:
Excludes land vehicles acquired under benefits granted by any law exempting the import tax.
Exemption from Tax on the Sale or Transfer of Shares:
Of user companies of the Colon Free Zone.
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