Executive Summary LAW No. 41 of 24th August 2007 SPECIAL ...

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een considered as a deductible cost by the person who received them. In these cases, the contributor who benefits from the service or fact hereby stated will apply the tariffs settled down in Article 699 of the Fiscal Code over the 50% of the amount to be sent to the Regional Office. In this case, it will be used as retention from source procedure. For the end of the fiscal period, the Regional Office will present its rent declaration asserting its rent as exempted and showing the paid tax, without any right to obtain fiscal credit for the losses from costs and expenses assumed by its operation. Companies with the license of a ROMC are obliged to fulfill the information requirements of payments made to third parties, natural or juridical. Notwithstanding what it is established in this Law, companies with a license of a ROMC shall be able to reach fiscal agreements with the Ministry from Economy and Finance for the consolidation of their gains and the tax payments from the rents obtained in other countries. If these fiscal agreements are obtained, thereby will be established the effective date for the payment of those taxes. Company with a license of a ROMC will have to present a copy of the Agreement before the Technical Secretariat. IMMIGRATION REGIME By means of this Law it is established a special visa for foreign personnel working in a ROMC. The personnel granted with this type of visa will have the right to work within the national territory as long as the personnel works in the multinational company with license of a ROMC and fulfills what it is established in this Law. The dependants of the foreign personnel granted with this visa will be able to request the respective dependant visa. Pursuant to this Law, dependants of personnel of a ROMC will be the spouse, the minor children or the children of less than twenty-five (25) years who are actually studying and to the parents of the principal. They will remain within the national territory under responsibility of the principal, previous fulfillment of the established requirements. This visa will be granted no more that the term agreed in the labor contract, as long as he works in the company with a license of a ROMC. Nevertheless, the personal identification card issued by means of the visa will be extended every five years and it will include the right for multiples exits and entries valid for the term fixed in the personal identification card. Once the visa is granted no other permits or authorizations from a government entity will be necessary to work in the ROMC or to live in the national territory. 6
The company with license of a ROMC will be able to hire especial foreign employees to occupy manager, high and medium level positions required for its operation, pursuant to what is established in the Labor Code for companies whose transactions are performed, consumed or have their desired effects outside the Republic of Panama, but it will not apply for these employee’s dependants who will have to obtain the corresponding permissions pursuant to the effective provisions. The personnel of company with license of a ROMC granted with this type of visa will not be able to do other lucrative activities different from the ones performed in the ROMC. Furthermore, the personnel of company with license of a ROMC will be in exempted for a single time, at the moment of the movement to Panama, of payment of import tariffs for personal domestic use objects or of its dependants. If the personnel decides to leave the national territory before three years from the exempted import will have to show proof of the re-exporting of these objects, unless he properly demonstrate to competent State employees that the introduced object are unsuitable or have been sold previous payment of established import taxes. As long as the personnel of the ROMC is temporarily in Panama and does not request his permanent residence will not be obliged to the obligatory affiliation to the Social Security Authority. These foreign employees must have private medical insurance for them and for its dependants. The multinational company will be responsible for this coverage. SANCTIONS Any action or omission that transgresses or violates the provisions established in this Law or the provisions issued in conformity with the same, or those resulting from the respective licenses will be assumed as an infraction subject to be sanctioned by the Technical Secretariat. Among these violations we can mention the following: 1. The multinational company granted with a license of a ROMC which carries out, in the national territory, different activities from the authorized by its license, without fulfillment of what it is established in this Law its license will be cancelled and will have to pay a fine of an equivalent of three times the incomes not perceived by the Nation because of the fiscal exonerations stated in this Law. 2. The employees who enter the national territory protected by this Law and remain in Panama without certainly working in the company with a license of a 7
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Executive Summary LAW No. 41 of 24th August 2007 SPECIAL ...

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