Panama: Attractive Country for Multinational Companies

Posted on 2017-11-17

According to the Center for Economic Studies of the Chamber of Commerce of Panama, (CEECAM), the Isthmus remains an attractive country for foreign investment, because the economy maintains an adequate rate of growth that facilitates and stimulates the generation of business.

In the first half of 2017, Direct Foreign Investment reached two thousand eight hundred and forty four million 600 thousand, "according to CEECAM figures. The Multinational Companies are not alien to this positive scenario and have seen a great opportunity in the country.

For October 24, 2017, according to the official page of the Ministry of Commerce and Industry (MICI), 143 Multinational Companies operate the country, 13 of them incorporated this year. "This is good news that reaffirms the confidence of foreign investors in Panama," Augusto Arosemena, minister of trade and industry, told the national media in October.

Great incentives

Through Law 41 of August 24, 2007, which established a special regime for the establishment and operation of Multinational Company Headquarters (SEM), Panama sought to make easier the access to tax, labor and migratory benefits for these companies. The results have been satisfactory.

An official statement from the MICI, from January 2017, summarizes that the Multinational Companies (for that date 134) had an estimated investment of 820 million dollars, creating at least five thousand 500 jobs.

"Panama has a strategic geographical position for the development of multinational businesses, as well as a large number of logistics assets that support markets and national and international trade. These logistics nodes interact with each other and facilitate the flow of goods, "explained CEECAM.

Daniel Oblitas, a renowned international economist, said that the SEM system is very attractive, since it provides benefits for the company and its employees. "I would have to add the perfect geographical location of the country and good air connectivity, which facilitates regional mobility," he explained.

The MICI explains on its official website (www.mici.gob.pa) that the Headquarters of Multinational Companies offer a series of attractions, ranging from tax, as exemption from the payment of Income Tax, legal stability regime, exemption of affiliation to the Social Security Fund, among others, as well as immigration (law 45 of August 10, 2012) that allow permanent staff visa, dependent visa and permanent residence.

"The benefits are many and we believe they are obvious. Not only for all economic activity generated by foreign executives who come with these companies (rent, purchase of goods and services), but these companies also require well-trained Panamanian personnel to work in them, creating opportunity for economic improvement for thousands of nationals, "said CEECAM.

Smooth sailing

Between 2016 and 2017, 34 Multinational Companies from different sectors were registered in Panama (official list of the MICI on October 24), which demonstrates the confidence that companies continue to have in the country.

The attractions of a transport and logistics hub have been decisive. "Logistics Park, Atlantic and Pacific ports, Expanded Canal, the railroad, special tax regimes such as the Panama-Pacific Special Economic Area, City of Knowledge, Free Zones, Headquarters of Multinational Companies, Colon Free Zone, Panama-Colón Highway, banking center and Tocumen International Airport, "explained CEECAM.

Oblitas, on the other hand, maintained that the arrival of foreign companies always has to be seen as something positive, not just for job creation. "These companies contribute their " know how "   to the market and the people who come with them contribute to local consumption. It will always be positive to receive companies of good level. The country is benefited in its entirety, "he closed.

Source: El Venezolano