Panama city, attractive investment for multinational companies
After confirming the news of last Monday, October 23, 2017, where it is established that Panama will expand this year the figure of the list of multinationals hosted by the Law of Multinational Company Headquarters (SEM) to 143. Five new companies are included multinationals that have chosen this geographical point, for the benefits offered by the country and strategic connectivity.
We are talking about the recognized American Visa companies; Inc. and McKinsey & Company, Inc., with international offices throughout Europe and soon in Panama; in addition to Panalpina World Transport LTD., headquartered in Switzerland, Hankook Tire Co., Ltd., of South Korea and one of the main international companies of train manufacturer CRRC Corporation Limited, from Republic of China.
Confirmed by the Ministry of Commerce and Industries (MICI), the economic impact due to the establishment of these multinational companies in the region of the country, will be more than $ 3 million investment, and new jobs during the first year of the operational period.
According to the Minister of the MICI, Augusto Arosemena, the confidence of foreign investors in Panama is being resumed again, with the arrival of the new SEM companies, adding 12 new companies to the list this year.
On the road to progress
The Deputy Minister of Foreign Trade, Néstor González, said that multinational companies keep an eye on the Republic of Panama, as an attraction to set their regional headquarters, due to the profitability that is offered (by the SEM Law), geographical position and connectivity .
Manifesting that with each of these companies that arrive in Panama, the country has an effect of increasing, since Panamanian workers are hired, contributing to the economic movement of the country at operational level and with the foreign personnel of each of them, having the objective of motivating them to share knowledge with the local workforce.
End of the year with good prognosis
It is estimated that by the end of this year, it has been confirmed to decree an approximate of 18 SEM companies (12 confirmed at the moment, without announcing names by negotiation and confidentiality processes). Insured by Vice Minister González, these companies will be announced soon.
Law No. 41, known as the SEM Law, of August 24, 2007, indicates that multinationals may have the necessary trust personnel and their senior management executives to carry out their operational work in the Isthmus of Panama; noting that dependents wishing to work, may make changes in their immigration status, in addition to the benefits received by multinationals when establishing their headquarters in Panama, such as:
- Exoneration of payment of Income Tax (ISR); Transfer Tax on Personal Property and Furniture and Provision of Services; of the Dividend and complementary tax, and use of Fiscal equipment.
- They may get to make tax agreements with the Ministry of Economy and Finance (MEF) in order to consolidate their profits and tax payments for the income they acquire in various countries.