IMPORTANT – Law 526 of 2026: Economic Substance Requirements for Foreign-Source Passive Income

Arosemena, Noriega & Contreras |  +507 366-8400 |  anc@anorco.com.pa

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  • The Pfizer Bivalent Vaccine Arrives to Panama

    The Pfizer Bivalent Vaccine Arrives to Panama

    The Pfizer Bivalent Vaccine Arrives to Panama

    Last Tuesday, January 10, a batch of 75,600 doses of Pfizer’s Bivalent vaccine against COVID was received in Panama.

     

    These doses will be applied as of Friday, January 13, which is seeking to strengthen the vaccination program and mitigate the spread of COVID in the country.

     

    The Ministry of Health highlights that this vaccine protects against the variants of the COVID-19 virus, B.5, XBB, BQ1 and BQ.1.1 that currently circulate, making Panama one of the first countries in the region to receive this vaccine.

  • Panamanian Public Servants with Political Aspirations

    Panamanian Public Servants with Political Aspirations

    Panamanian Public Servants with Political Aspirations

    Any public servant with political aspirations for the general elections taking place in May 2024 must resign from their position as of January 15, 2023.

     

    In this regards, the article 33 of the Electoral Code establishes that no public servant can be eligible for a popular elected position who has served, at any time, six months prior to the election.

     

    Within those public servants who must comply with this requirement are ministers, vice ministers, general secretary and general director of governmental entities, governors, officials of the Judicial Branch to mention the most important.

  • Panama Canal- The Economic Game Changer of the 20th Century

    Panama Canal- The Economic Game Changer of the 20th Century

    Panama Canal – The Economic Game Changer of the 20th Century

     

    How did the construction of the Panama Canal impact Panama’s economy in the early 20th century?

    The construction of the Panama Canal was a monumental undertaking that began in 1904 and was completed in 1914. It had a profound and lasting impact on Panama’s economy. During the construction period, the influx of funds, job opportunities, and economic development associated with this colossal project ushered in a new era of prosperity for the nation.

     

    Panama became a hub of activity as people from around the world flocked to the region to work on the canal. This resulted in a significant boost to the country’s economy. The construction provided employment for thousands of Panamanians and immigrants, and the money flowing into the country stimulated local businesses.

     

    What is the ongoing economic significance of the Panama Canal?

    Even a century later, the Panama Canal remains a crucial economic artery, contributing significantly to Panama’s economy. It generates substantial revenue through tolls paid by ships passing through its locks. This revenue not only supports the maintenance and operation of the canal but also fuels economic growth in the surrounding areas.

     

    Moreover, the Panama Canal continues to stimulate trade, tourism, and investment in the region. Its strategic location allows ships to bypass the lengthy and treacherous journey around South America, making it an indispensable part of global trade routes. As a result, Panama has positioned itself as a key player in international commerce.

  • Electronic Documents and Signatures Regulations in Panama

    Electronic Documents and Signatures Regulations in Panama

    Electronic Documents and Signatures Regulations in Panama

     

    Law 51 of 2008, as amended by Law 82 of 2012 (the “Law”) establishes the regulatory framework for the creation, use and storage of electronic documents and the electronic certification of signatures in Panama.

     

    The Law also establishes the regulatory framework for certain commercial acts carried out through the Internet, mainly in relation to information concerning the execution of electronic contracts and the conditions relating to the validity and effectiveness of such contracts; the obligations and responsibilities of commercial service providers through the Internet, including those who act as intermediaries in the transmission of content through communication networks; including offers, promotions and contests; and the penalties applicable to commercial service providers through electronic means.

  • Law 337 of 2022

    Law 337 of 2022

    Law 337 of 2022

    The Government of Panama enacted Law 337 of 2022 (the “law”;), for the purpose of increasing the collection of taxes and duties.

     

    The most salient points of the Law are:

     

    • All corporations that, until December 31, 2023 are in arrears in the payment of franchise tax and that intend to dissolve the same before the Public Registry, are exempted from the payment of the franchise tax, except for the last period, as well as the waiver of the surcharges caused. The only payment that the corporation has to make is the last franchise tax and the marginal fine for reactivation. 
    • The amnesty period regarding the payment of the franchise tax is extended until December 31, 2022.
    • 100% of the total interest and surcharges of the franchise tax will be forgiven until December 31, 2022.
    • Up to 60% of the value of the marginal fines applicable to corporations will be exonerated until December 31, 2022.
  • Almuerzos Ejecutivos | Agosto 2022

    Almuerzos Ejecutivos | Agosto 2022

    Almuerzos Ejecutivos | Agosto 2022

    El pasado martes 4 de agosto de 2022, recibimos como expositor al Dr. Lucas Verzbolovski, presidente de AREDIS – Asociación de Representantes y Distribuidores de Productos Farmacéuticos, quien nos habló sobre su análisis de los “Medicamentos en Panamá, mitos y realidades”.

     

    El desarrollo del tema fue llevado de manera excepcional por el Lic. Verzbolovski quien demostró con hechos irrefutables la comparación de los diferentes sistemas de subsidio de medicamentos en el mundo, estableciendo las pautas sobre la posición de Panamá y los aspectos que se deben mejorar para que este aspecto crítico de la seguridad social del país pueda tener un futuro sostenible.

    Julio César contreras III, Dennis Rousseau – Agence France Press y la Sra. es Vielka de Henríquez, Lucas Verzbolovski, Vielka de Henríquez, Miguel Antonio Bernal

    AROSEMENA NORIEGA & CONTRERAS ha instituido un programa de charlas magistrales que se llevan a cabo periódicamente durante el año en nuestras oficinas. Estas charlas tienen como objetivo principal desarrollar y debatir temas de interés entre socios, abogados, personal administrativo de la firma e invitados conformados por importantes personalidades del ámbito jurídico, social y comercial de nuestro país.

  • Towards a Green Economy: Challenges and Transitions in the Post Pandemic in Panama

    Towards a Green Economy: Challenges and Transitions in the Post Pandemic in Panama

    Conferences: “Towards a Green Economy: Challenges and Transitions in a Post-Pandemic Panama”

    On October 26, Mr. Mario Rognoni, an associate of our firm, participated in the business forum organized by the British Chamber of Commerce entitled: “Towards a Green Economy: Challenges and Transitions in the Post-Pandemic in Panama”.


    At said forum a discussion was held on the challenges and transitions that would affect Panama in the post pandemic period; the path towards a green economy; and the contribution of foreign direct investment in Panama, particularly by British companies.

     

    Mario Rognoni

  • Almuerzos Ejecutivos | Octubre 2022

    Almuerzos Ejecutivos | Octubre 2022

    Almuerzos Ejecutivos | Octubre 2022

    El pasado 20 de octubre de 2022, recibimos como expositor al Lic. Francisco Bustamante Peña, Licenciado en Economía de la Universidad de Panamá y antiguo Subdirector de la Caja del Seguro Social, quien nos habló sobre “Seguridad Social: Antecedentes, historia y situación actual en Panamá. Perspectivas “.

     

    El desarrollo del tema fue liderado por el Lic. Bustamante, en el que comenzó explicando la situación actual de la CSS, mostrando los estados de resultados y estableciendo de manera clara, adonde está el problema. Continuó estableciendo una serie de propuestas que solucionarían los problemas de liquidez a largo plazo.

    Ruben Elias Rodriguez, Francisco Bustamante, Lineth de Gil, Marqués de Torre Casa – Dr. Alejandro Alfonso Larrain, Julio César contreras III

    AROSEMENA NORIEGA & CONTRERAS ha instituido un programa de charlas magistrales que se llevan a cabo periódicamente durante el año en nuestras oficinas. Estas charlas tienen como objetivo principal desarrollar y debatir temas de interés entre socios, abogados, personal administrativo de la firma e invitados conformados por importantes personalidades del ámbito jurídico, social y comercial de nuestro país.

  • New amendments on British Virgin Islands (BVI) Corporations

    New amendments on British Virgin Islands (BVI) Corporations

    August 2022: New amendments for the British Virgin Islands (BVI) Corporations

    In August 2022, the authorities of the British Virgin Islands (BVI) published the new amendments made to the Business Companies Act (BCA) and its regulations. These amendments enter into force as of January 1, 2023.

     

    The amendments that update various parts of the BCA, reflect BVI’s commitment to international standards and best practices regarding transparency and the anti-money laundering struggle.

     

    The salient aspects of the amendments to the BCA, are the following:

     

    1. List of names of directors

    The register of directors will remain private, but will be available to users registered in the BVI VIRGIN online system upon payment of a fee for the investigation process and will be carried out by company name and only the names of the currently registered directors can be obtained.

     

    2. Voluntary Liquidators

    Any person appointed as a voluntary liquidator of a company must be a resident of BVI and must have at least 2 years of liquidation experience and an appropriate professional qualification or hold an insolvency practitioner license issued by the BVI Financial Services Commission.

     

    3. Bearer shares

    Companies incorporated in BVI will no longer be able to issue bearer shares and as of July 1, 2023 any company that holds bearer shares will be automatically converted into registered shares.

     

    4. New Procedure for the Restoration of Dissolved Companies

    The amendments introduce a new, simpler procedure for companies to apply for re-incorporation to the BVI Registry when they have been dissolved, in addition to the existing court procedure. Companies may submit an application to the Registry within 5 years following their dissolution.

     

    5. Strike Off Companies

    All those companies that are in strike off status due to non-payment of the annual license and their respective surcharges will be dissolved by the BVI Registry after 90 days. The company may be restored to the BVI Registry up to within a period of 5 years after having been dissolved.

     

    6. New annual financial statements

    All companies must present certain financial information to their registered agent through an annual declaration up to nine months after the closing of the fiscal period. To date, the details of the declaration format have not yet been confirmed. The registered agent is required to maintain said declaration and must notify the BVI Registry of those companies that have not complied with the declaration as sanctions will be applied for non-compliance. This statement will not be made public.

     

    7. New register of persons with significant control

    The registered agent must maintain a Register of Persons with Significant Control, that is, a register of the beneficial owner of the company. It is expected that in the future this registry will become an international standard.

     

    Arielka Zamora

  • Lifting sanitary measures

    Lifting sanitary measures

    Lifting of the sanitary measures regarding mandatory use of masks, physical distancing, capacity, and entry to Panama due to COVID

    On July 11, 2022, the sanitary measure of mandatory use of masks in open and closed spaces was eliminated throughout the territory of the Republic of Panama, with the exception of: public and private health facilities, persons engaged in the handling and sale of food; and public transport of passengers, collective and selective.


    Likewise, as of July 13, 2022, the use of masks is not mandatory in aircraft and international air and maritime transport vessels transiting or disembarking at airports or ports in the Republic of Panama. However, the mandatory use of the mask in aircraft transiting between airports within the Republic of Panama is maintained.


    Finally, on September 14, 2022, the Ministry of Health ordered the lifting of the following sanitary measures: physical distancing, restriction of capacity throughout the national territory and restriction due to Covid for the entry of travelers to Panama.

     

    By: Mario Rognoni

  • Peculiarities of Conflicts Generated from Civil Works Construction Contracts

    Peculiarities of Conflicts Generated from Civil Works Construction Contracts

    Peculiarities of Conflicts Generated from Civil Works Construction Contracts

    Through a Civil Works Construction Contract, a construction company undertakes to execute a project for the benefit of another called owner, who in turn is obligated to pay a certain price.

     

    In some cases, controversies and conflicts arise from said contract, which can be resolved through alternative methods of conflict resolution such as arbitration, conciliation, or mediation, provided that the parties have agreed to it in their respective contracts.


    In any every case, the following conditions must always be complied with: (i) the contractual and legal basis of the claim must be identified; (ii) the claim must be recorded; (iii) there must be technical support accompanied by documentary and expert evidence; and (iv) the corresponding actions must be carried out to notify the other counter-party of the claim.

     

    By: Ana Cristina Alzamora

  • Personal Data Protection

    Personal Data Protection

    Personal Data Protection

     

    Our Political Constitution, aligned with international patterns, served as the basis for the enactment of Law 81 of March 26, 2019, regulated by Executive Decree 285 of May 28, 2021, which together constitute the general legal framework for the protection of Personal Data in Panama, setting the minimum standards that must be met to comply in the processing of Personal Data and establishing the applicable sanctions in case of non-compliance of the rules.

     

    By: Ana Cristina Alzamora

  • Medicinal use of Cannabis

    Medicinal use of Cannabis

    Medicinal use of Cannabis

     

    On September 1, 2022, Executive Decree No. 121 was issued, with the purpose of creating the regulatory framework that allows the supervised and controlled use and access of cannabis and its derivatives, for therapeutic, medical, veterinary, scientific, and research purposes throughout the Republic of Panama, and at the same time prohibits the sale of medicinal cannabis door to door or by internet.

     

    Any product derived from cannabis for the purposes at hand will be subject to a system of surveillance and supervision by the Ministry of Health, which is the competent authority to establish the requirements, receive applications for acquisition licenses, store, transport, dispense and/or market, consume and export cannabis and its derivatives for medicinal purposes.

     

    By the same token, on September 1, 2022, Executive Decree No. 85 was issued, creating the National Directorate for the Monitoring of Activities Related to Medicinal Cannabis.

     

    By: Arielka Zamora

  • New Laws on International Tax Fiscal Transparency

    New Laws on International Tax Fiscal Transparency

    New Laws on International Tax Fiscal Transparency

     

    In order to comply with the Foreign Account Tax Compliance Act (FATCA) and facilitate the exchange of tax information, Panama enacted the following laws:

     

    1. Law 47 of October 24, 2016, which ratifies the Agreement between the Government of the Republic of Panama and the Government of the United States of America, to comply with international tax standards and to execute FATCA. The Ministry of Economy and Finance is empowered to carry out the exchange of information corresponding to the year 2014 and all subsequent years.
    2. Law 51 of October 27, 2016, which establishes the legal framework for the Exchange of tax information and other rules are enacted. The Ministry of Economy and Finance is empowered to request and carry out in situ inspections in private entities and financial institutions with the purpose of gathering all necessary information to comply with the exchange of tax information with foreign authorities, FATCA, and tax treaties.

     

    By: Ana Cristina Alzamora

  • Migratory Regulations: Venezuela

    Migratory Regulations: Venezuela

    New migratory regulations for non resident Venezuelans

     

    NON-RESIDENT VENEZUELANS WHO ENTER PANAMA MUST APPLY FOR A STAMPED VISA AT THE PANAMANIAN CONSULATE

     

    By means of Executive Decree No.77, the Decree that created the Office of Humanitarian Affairs for Venezuelan residents, to attend to requests for family reunification for humanitarian and family union reasons, is repealed.

     

    Once the family reunification visa has been eliminated, all foreign NON-RESIDENT Venezuelan nationals who want to enter the Republic of Panama must apply for a Stamped Visa at the Consular Office of Panama in the country in which they are located or through an attorney within the territory of Panama.

     

    An exception applies to those foreign Venezuelan nationals who have a multiple visa and previously used in the granting State and its validity is not less than 6 months at the time of entering the territory of Panama or, valid residence, duly issued from the following countries: Canada, United States of America, Commonwealth of Australia, Rep. of Korea, State of Japan, United Kingdom of Great Britain and Northern Ireland, Rep. of Singapore and any of the States that. make up the European Union.

     

    By: Chantall Santos

  • Interesting facts about the Panama Canal

    Interesting facts about the Panama Canal

    Some interesting facts about the Panama Canal

    This August 15th, the Panama Canal reaches 108 years of operation, which is why we take the opportunity to share some curious facts about this wonder of world trade:

     

    • The cost of the Panama Canal toll depends on the weight of the vessel and the number of passengers.
    • The cheapest toll was paid in 1928 by Mr. Richard Halliburton who swam through the Panama Canal. This man paid 36 cents of a dollar, equivalent to his 63 kilos of weight. The transit took him 14 days and he swam the 49 miles (80 kilometers) of the Panama Canal.
    • On average a ship takes between 8 and 10 hours to cross the Panama Canal.
    • The Panama Canal works as a stair in which its locks (Gatún in the Atlantic and Pedro Miguel and Miraflores in the Pacific) are emptied and filled, thus allowing ships to pass through the isthmus.
    • The first ship that crossed the Panama Canal was the American ship Ancón on August 15, 1914. Curiously, August 15 is the anniversary date of Old Panama (Panamá La Vieja) an archaeological site where the city of Panama was located. since its foundation in 1519.
    • The Panama Canal has closed twice during its entire operation: (i) In 1915 due to a landslide on September 18. The landslide was of such magnitude that 10 million cubic yards of land were required to be dredged over 9 months and (ii) In 1989 during the US invasion of Panama.
    • Gatun Lake is a large artificial lake and is a key element of the Panama Canal because it supplies its operations and helps the transit of ships through the locks. It was created between 1903 and 1913 and in those years, it was the largest artificial lake in the world.

     

    By: Maryluz Castillo G.