1. PANAMA como HUB
de distribuição para a
América Central e
Caraíbas
SEMINARIO 2016

3. 02
PANAMA - INTERNAL
CONTEXT

4. 03
PANAMA
DATA

5. 04
WHY PANAMA?
“Panama can be the perfect platform for developing a
business in the Americas and beyond.”

6. Panama is a key destination for foreign investment for all of its advantages:
• Strategic geographic position
• Economic, financial, and political stability
• The most important destination for tourists and investment according to recognized
international media
• World-class communication platform
• Highest economic growth in Latin America and the Caribbean
• Economy based on a developed service sector
• Complete logistics platform
• Panama Canal as main shaft
• Colón Free Zone as the largest free zone in the western hemisphere and second largest in
the world
• Legal and tax benefits per areas and special programs such as the SEM (Headquarters of
Multinational Companies), Panama Pacific Special Economic Area, and free zones, among others.
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7. TAX STRUCTURE
Persons, either natural or legal entities, undertaking business both inside and outside the territory
of Panama are subjected to taxes only on income generated within the territor y of
Panama.
There are several special taxation regimes for companies operating under incentive regimes,
such as companies located in the Colón Free Zone and other special commercial areas, as well as
for companies specifying certain investments, services, or productions.
Main taxes
Income Tax
What is taxed?
Taxable income: income from Panamanian source, territorial.
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8. How is tax applied?
For taxpayers with annual gross taxable revenues over $1,500,000, Panamanian source
income is subject to a 25% corporate income tax rate assessed on the higher of:
• The taxpayer's actual net taxable income; or
• a presumed net taxable income of 4.67%
Deductions
Expenses or costs of the enterprise used to generate taxable income or to preserve the business
are deductible in tax returns and must be documented by the fiscal printers.
Rates of income tax
General rate: 25%
Annual tax returns
Three months after the fiscal year ends.
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9. VAT ( ITBMS )
What is taxed?
This income applies to imported merchandise, or products and services, sold in Panama.
Who is the contributor?
The importer, seller, or service provider
Rates
• General: 7%
• Alcoholic beverages: 10%
• Hotels: 10%
• Tobacco: 15%
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10. Real estate property
For the ordinary course of business with construction permits issued before January 1, 2010, the general tax regime
applies.
For the ordinary course of business with construction permits issued after January 1, 2010, a definitive tax is paid over the
sale price as follows:
Value of the new real estate property:
Up to $35,000: 0.5%
From $35,000 to $80,000: 1.5%
Over $80,000: 2.5%
Commercial properties: 4.5%
DIVIDEND TAX
What is taxed?
Net after-tax profits for the shareholder.
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11. Rates
Nominative shares: 10%
Exempt incomes: 5% f) and l) of the Article 708 of the Fiscal Code, free zone companies, foreign
source income.
Bearer shares: 20%
Tax returns
Ten (10) days following the date of distribution.
NOTICE OF OPERATIONS TAX
What is taxed?
Net Assets.
Rates
• 2% annual over the net assets of the company up to a maximum of $60,000.
• 0.5% annual over the net assets of the company (free zones) up to a maximum of
$50,000.
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12. 11
Facts:
Panama has been the fastest-growing economy in Latin America in 2016.
Panama's ser vices industr y, in particular banking, commerce, and shipping, account for 80%
of the countr y's economy.
The banking sector of Panama has evolved into one of the most important global financial centers
of the 21st Century ( 48 banks that make up the country's national banking system, 18 are privately owned
Panamanian banks, 28 are foreign banks with full lending and deposit operations in the consumer and commercial
segments which employs more than 23,000 people ).
“Central to Panama's economy is the canal that is, in
2016, taking on a bigger role than ever before.”
ECONOMY

13. The notable stability of its political processes.
A long history of low inflation ( currently : 2,5% ).
Unemployment low: 4.5%.
One of the least bureaucratic in the world.
Panama has become a second home – or a new home – for many Latin Americans fleeing their
countries like Colombia or Venezuela.”
Panama has one of the region's most advanced e-government infrastructures.
Increase in minimum wage in 2016: 8,5% ( aprox.$500,00 ).
GDP grew by 5.8% in 2015, slightly down from 6.2 in 2014.
The second most competitive economy in the region after Chile.
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14. The World Bank forecasts growth of 5.9% in 2016 ( in 2011 at an all-time high of 12.20% ).
The sectors that present the strongest growth in 2016 are energy, finance, industr y, and
transport.
The Port of Balboa is the leading container port in Latin America, benefitting from its
super-strategic location on the Pacific side of the Panama Canal.
Tocumen International Airport greeted more than 8.4 million passengers and it is
now building a second terminal.
Increased demand for energy, which grew by 4% in 2015.
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15. Agriculture, traditionally Panama's strong card, contributing 9.7% to GDP in 2015. Panama's
agricultural sector is dominated by a small number of key crops, namely bananas, cocoa
beans, coconuts, coffee beans, melons, pineapples, beef, chicken, shrimp, corn,
potatoes, rice, soybeans, sugarcane, and timber.
Another boost to the economy comes from the extensive redevelopment of Colón.
The urban renewal project is reckoned to benefit more than 25,000 residents of the city and involves the construction of
5,000 housing units.
- 2nd. and 3rd. METRO lines;
- the new TOCUMEN INTERNATIONAL TERMINAL ( 2nd. )
- the Atlantic Touristic Center.
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16. Exports from Panama
The majority of Panama’s exported services are related either directly or indirectly to the
Panama Canal and the CFZ ( more than 7.0% of the national economy : USD 10 billion
annually).
The main goods that Panama exports are:
-medicines,
-petroleum products,
-ships and agricultural commodities.
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17. Main recipients of these exports:
The United States, Ecuador and Venezuela.
Main origins:
North America, Asia and Europe.
The CFZ, which accounts for, also serves as a major distribution point for re-exported
goods.
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18. Imports to Panama
Panama is self-sufficient in some domestically-produced agricultural products such
as bananas, sugar and rice, but imports large quantities of other foods.
Moreover, Panama is the top energy consumer in Central America, and must import more than
80% of its energy to meet its needs.
All the rest…
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19. PANAMA - EXTERNAL
CONTEXT
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20. Connecting the Pacific to the Atlantic and North America to South America, Panama is the
tropical thoroughfare where transport, banking, logistics and travel retail all converge at the
very backbone of Latin America.
Regional Super Hub
Panama’s economy has been growing at an average of about 10 percent annually over the past
few years, but the reason it is on the fashion radar is because of its growing status as a super
hub.
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21. Indeed, for brands, magazines and retailers alike, Panama’s fast-growing domestic market
of 4 million people is just an appetizer. The main course comes when they attract
customers from the 30 or so international Latin markets on Panama’s doorstep.
With about 9,900 ultra high-net-worth individuals currently living in Latin America,
the region now has more people with assets over US$30 million than in the Middle East and
Russia combined.
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22. Our priority markets
Honduras, Nicaragua, Costa Rica, El Salvador and Guatemala, as well as Cuba and
Dominican Republic are the targeted markets for us…Mexico and Colombia are not a priority
for now.
Why?
- Growth;
- Market size;
- TLC´s ( Tratados de Libre Comercio )
Business and pleasure seekers come also from as far away as Uruguay, Argentina, Brazil, Peru,
Chile, Bolivia and Paraguay.
TLC´s with:
- Canadá
- Chile
- El Salvador
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23. - Honduras
- Peru
- México
- Costa Rica
- Taiwan ( China )
- Guatemala
- Nicarágua
- Singapur
- Republica Dominicana
As well as other commercial agreements with:
- United States of America
- Mexico
- European Union
- Israel
- Colombia
- Trinidad & Tobago
- ALADI ( Asociación Latinoamericana de Integración )
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24. BUSINESS
OPPORTUNITIES
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25. ENERGY
Panama's long-undersized energy sector is destined to transform itself as a major player in the
economy in the coming years. With big infrastructure projects coming on stream in
2017, this diversified sector is heading in the right direction.
Panama's overall generation:
Hydroelectric power made up 64%;
Oil-fired generation 35%;
Biomass less than 1%.
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26. 25
Energy diversification
Panama is looking to move away from oil-fuelled power through diversification, primarily through
increasing the role of natural gas as well as non-conventional renewable energy
sources ( mainly wind and solar ).
TELECOMS & IT
Panama was one of the first to offer 4G connectivity in the region and among the first in the world
to provide universal access to Wi-Fi.
“Panama spends more than $500 million a year on
subsidies.”

27. Around 80% of the country's network is accessed by mobile devices but there is lot´s to do in rural
areas.
As the connection point between Central and South America, there are more than seven major
submarine fiber optic lines that pass through Panama on their way south and to the rest of the
world.
New technologies & call-centers ( ZONA ESPECIAL PANAMA-PACIFIC ).
TRANSPORTATION & LOGISTICS
The transportation and logistics sector is the pillar of the Panamanian economy. The sector
contributed 19.2% to the country's GDP in 2015.
In 2014, the government announced a $19 billion investment plan, the Strategic Plan 2015-2019.
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28. CONSTRUCTION & REPAIRS
“Panama's construction scene is booming, with plenty of opportunities for fresh
investments.”
Construction is a dynamic and important part of Panama's economy, contributing 14.5% to GDP in
2015.
In the 2015, the value of building permits, construction projects, and repairs in Panama rose to
$565 million, an 18% increase from the 2014 figures.
Cement and clinker production is central to the construction industry in Panama.
Urban renewal.
New construction technologies.
Maintenance & services.
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29. WASTE TREATMENT, SANITATION & SEWERAGE
Policy and Regulation
The Panamanian Health Ministr y is responsible for defining the sector's policy, whereas the
“Autoridad Nacional de los Servicios Públicos ASEP” or National Authority for Public Services acts
as regulatory agency.
Responsibility for water resources is vested in two institutions:
The Autoridad Nacional del Ambiente or National Environment Authority and the Autoridad del
Canal de Panamá or Panama Canal Authority.
According to the Water Law, the Instituto de Acueductos y Alcantarillados Nacionales (IDAAN) is
responsible for water and sanitation services in urban areas.
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30. Projects currently under development
The 100% completion of the first phase of the project aimed at eliminating the residual
charges that contaminate the Pacific coast opposite the capital of the isthmus is due in
December 2016. Therefore, the authorities accelerate a program to eliminate thousands of latrines
still existent in the city, after an investment of the State and international banking of $ 900 million.
The mosquito diseases irradiation plan ( dengue, zika y chikungunya ).
Urban Drainage Project.
Urban waste treatment.
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31. TOURISM & WELL-BEING
“ With more airlines than ever before flying to Panama, the countr y is well placed
to develop its tourism industr y.”
Tourism contributed 8.1% to Panama's overall GDP in 2015, an improvement of 5.6% on 2014's
performance.
Panama is blessed with many of the qualities that tourists from around the world look for in a
destination:
- a tropical climate,
- some of the world's most beautiful beaches and coastline,
- a pristine hinterland with jungle-covered hills and fast rivers,
- an international and cosmopolitan air, reflective of the country's outward engagement with the
world,
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32. - and an eco-tourist's paradise, with hundreds of rare bird species, miles of virgin rainforests, and
world-class fishing, diving, snorkeling, and sailing along unspoiled coastlines.
“ A world-class destination, complete with top hotels, a first-world quality of infrastructure and
services, including across-the-board high-speed internet, and a business climate that is
international, lightly regulated, and that is right now the nerve center of the fastest growing
economy in the Americas. “
Luxury Tourism
Panama is starting to become a world destination for high-end tourism and travel.
EDUCATION
The lack of qualified local staff presents as an opportunity for professional formation
centers.
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33. Many restrictions exist for education and health infrastructures to be operated by foreign
companies.
COMMERCE AND SERVICES
Why?
- Due to the growing demand,
- Economic capacity,
- Young consumers,
- Tech trend society,
- Cultural diversity,
- The “hub” of the Americas.
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34. “PORTU CALIDAD" -
DOING BUSINESS IN
PANAMA / BARRIERS
AND STRATEGIES
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35. DOING BUSINESS IN PANAMÁ
Type of companies & costs.
Target Markets:
Local: 48%
Regional: 28%
International: 21%
Positive points:
1 - Strong and growing local consumer base
2 - Government led campaign for transparency
3 - Good logistics infrastructure and in-country transport network
4 - Access to overseas market
5 - Legal structures and incentives to businesses
6 - Strong support from the financial sector
7 - Ease of doing business
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36. Challenges:
1 - Lack of qualified local staff
2 - 10 Panamanian workers for each foreign worker ( by law )
3 - Local costumes and way of life.
MAIN BARRIERS TO GROWTH
1 - Economic slowdown in Latin America ( Venezuela & Brasil )
2 - Lack of qualified local staff
3 - Falls and volatility in commodity prices
4 - El Niño impact
5 - Lack of market knowledge among the population
6 - Over reliance on hydro power
7 - Lack of transparency
8 - Reliance on Panama´s Financial services
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37. GENERAL CHALLENGES IN THE SHORT TIME:
1 - Improve urban planning
2 - Expand FTAs ( Free Trade Agreements )
3 - Greater advertisement/promotion of Panama and Panamanian products
4 - Develop water security plan
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38. STRATEGIES “ PORTU CALIDAD - BUSINESS CENTER “
1 SHOWROOM, open 7 hours a day :: 5 days a week
Staff: 1 assistant ( office, marketing and local sales ) + 1 commercial ( external clients )
20 exposition spaces ( 20 x 12m2 )
US$7.500,00 annual fee per company / exposition space
WHY?
1 - local operation
2 - building trust
3 - direct and permanent business contact
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