Molina & Co.

Panama and the United States approved the Trade Promotion Agreement (TPA).

A brief on new agreement No. 004-2011 of May 4, 2011 on banking transactions.

The U.S.–Panama Trade Promotion Agreement (the “Agreement”) will support American jobs, expand markets and enhance U.S. competitiveness.

Tips on opening a bank account in Panama.

By Act 2, February 1, 2011, That concerns the measures to know the client for legal entities such as resident agents existing under the laws of the Republic of Panama.

The term to exercise the right to be reimbursed any overpaid or improperly paid amounts to the Treasury is reduced from 7 to 3 years, counted from the last day of the year on which payment was made.

The rates for natural person shall be as follows:

With the enactment of Law No.8 of 2010, new rates will take effect on income tax for both legal entities and for individuals. Note that the application of these rates is retroactive, so their entry into force is from January 1, 2010. In addition, it includes tariff changes regarding ITBMS (similar to the VAT), ISC and Stamps, which take effect from July 1, 2010.

The Republic of Panama was recently awarded the "investment grade rating on its debt" by the rating agency Standard & Poor's, which adds to that previously awarded by Fitch, thus becoming a stable and growing country and generating a lot of confidence among investors.

The author discusses Law No. 5 of January 25, 2006 modifying Article 5 of Law 108 of 1974 which grants incentives for exports and indicates other provisions.

The author describes today socio-economic situation in Panama.