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

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
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