The law that modifies Article 9 of Law 80 of November 2012 was enacted with the objective of promoting investment and financing for the development of new projects or new stages and expansions of existing investments in the interior of the country.
This law serves as a catalyst for investment by facilitating the capitalization of projects, thus serving as a fundamental tool to continue the development of the tourism sector in our country.
Through this law, both natural persons and legal entities are entitled to an income tax credit of one hundred percent (100%) for the amounts invested in the acquisition of bonds, shares or other financial instruments issued by tourism companies registered in the National Tourism Registry of Panama (ATP).
These tourism companies may invest in new projects or in expansions of existing tourism projects, both located in the interior of the Republic of Panama.
This incentive shall be available to investors who are not directly or indirectly affiliated with the tourism company that issued the financial instrument until December 31, 2025. It should be emphasized that only the investor who is the first to acquire the shares or financial instruments mentioned above shall be able to obtain this tax credit.
The following are the conditions for using an established tax credit, which may be used for a maximum of ten (10) years:
Bonds, shares and other financial instruments, on the other hand, must meet the following criteria to access the tax credit provided by this law:
The Panama Tourism Authority estimates that this incentive shall benefit the tourism industry, which is currently affected by a worldwide pandemic, by attracting new investments and improving the country’s tourism infrastructure.
Finally, the entire procedure for the recognition and application of incentives to investors in tourism companies is duly established by Executive Decree 364 of July 23, 2020.
We, at Quijano & Asociados, are at your disposal to assist you in the whole process of structuring and registration of the Tourism Bonds or any other financial instrument in the Superintendence of Stock Market of Panama and its subsequent listing in the Latin American Stock Exchange.