Arosemena Noriega & Contreras

Author: anorcodigitalweb

  • Cryptocurrencies in Panama: Legal Challenges and Investor Risks

    Cryptocurrencies in Panama: Legal Challenges and Investor Risks

    Cryptocurrencies in Panama: Legal Challenges and Investor Risks

    What are cryptocurrencies?

    Cryptocurrencies are digital assets that are used for purchases, sales, investments and financial transactions in general. Currently, there are a few establishments in Panama that accept payment of goods using cryptocurrencies.

    Current state of regulation in Panama

    Notwithstanding the above, presently there is no legal framework that regulates cryptocurrencies in Panama, moreover, in July of 2023 the Supreme Court of Justice declared unconstitutional a bill which intended to regulate the use of cryptocurrencies.

    Warnings from the Superintendence of the Securities Market

    The fact that there is no regulation in force leaves users and investors of cryptocurrencies in Panama unprotected.  In this respect, by means of note dated 25 April 2018, the Superintendence of the Securities Market of Panama warned investors and the public in general to be prudent and be aware of the risks associated with cryptocurrencies, due to the fact that:

    1. They do not have a legal framework and therefore, are not under any supervision or oversight by a financial regulator in the Republic of Panama.
    2. They have no inherent value, they are intangible and their circulation is through the internet.
    3. They do not have the approval nor regulation of a central authority.
    4. They are vulnerable to money laundering.
    5. They are highly volatile and speculative assets.
    6. There is a high risk of fraud.

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    Concerned about the legal implications of cryptocurrencies in Panama? Contact ANORCO for expert legal advice on navigating the risks and opportunities of digital assets

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  • Gender Quota in Panama: Progress in Women’s Political Representation

    Gender Quota in Panama: Progress in Women’s Political Representation

    Gender Quota in Panama: Progress in Women’s Political Representation

    The modification of the Panamanian Electoral Code effected in the year 2007 represents a significant effort in favor of the political rights of women in Panama.  The new legislation reserves for women a quota of 30% of places within the political parties or any other position of popular election at the national level.  This regulation adds up to other efforts directed to reduce the gender gap in politics.

    In this sense, it is encouraging to know, that as a result of the recent May 5 presidential elections, out of the 71 deputies of the National Assembly elected for the new five-year period, 14 are women and 20% of other popular elected positions will also be held by women.

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    Interested in learning more about legal and political reforms in Panama? Contact ANORCO for expert guidance and insights into Panama’s legal framework.

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  • Environmental Law in Panama

    Environmental Law in Panama

    Environmental Law in Panama: The Landmark Case for Nature’s Right to Exist

    Panama has taken a pioneering step in recognizing nature’s rights, which could have far-reaching impacts on environmental law. Recent court cases have emphasized the protection of ecosystems, wildlife, and biodiversity, with Panama leading the way in safeguarding nature’s right to exist and thrive. The country’s legal system now recognizes that nature has intrinsic rights, moving beyond the traditional anthropocentric legal framework.

    This development in environmental law is critical for businesses and individuals involved in industries like construction, agriculture, and tourism. By embedding nature’s rights into the legal system, Panama has set a precedent for other countries in the region to follow.

    If you’re involved in any activity that may impact the environment, understanding the legal obligations under Panama’s environmental law is essential to avoid lawsuits and ensure compliance with new regulations.

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    To learn more about how these legal changes could affect your business, contact Anorco for a consultation.

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  • Panama’s Mining Law Reforms

    Panama’s Mining Law Reforms

    Panama’s Mining Law Reforms: What Businesses Need to Know About the Recent Supreme Court Ruling

    The recent ruling by Panama’s Supreme Court declaring the Minera Panamá contract unconstitutional has shaken the country’s business and legal sectors. This ruling highlights the need for businesses, particularly in the mining sector, to thoroughly understand Panama’s legal environment regarding contracts, environmental regulations, and corporate responsibilities.

    The ruling points out irregularities in how the contract was awarded, focusing on the lack of transparency and failure to follow tender processes. With mining contributing significantly to Panama’s GDP, this decision may lead to more stringent regulations and greater scrutiny of environmental and corporate compliance.

    Businesses operating in Panama, or considering entering the market, must be aware of the legal requirements surrounding corporate accountability and environmental sustainability. This includes understanding the importance of complying with Panama’s environmental laws and the potential for future legal challenges.

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    Are you concerned about how this ruling could affect your business? Contact Anorco for expert legal advice on navigating Panama’s legal framework.

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  • Public-Private Partnerships (PPP): Boosting Infrastructure Development

    Public-Private Partnerships (PPP): Boosting Infrastructure Development

    Public-Private Partnerships (PPP)

    Boosting Infrastructure Development

    Public-Private Partnerships (PPP) are agreements between the government and private companies to build or improve infrastructures such as roads, bridges, hospitals, schools and others. Pursuant to this economic model, the private company finances, builds, operates, and maintains the project for a set period of time.

    PPP Law in Panama

    In Panama, PPP are subject to by Law 93 of 2019, which establishes the legal framework by which they are regulated. This law aims to promote investment in public infrastructure by creating clear guidelines for collaboration between the public and private sectors. It ensures that these partnerships are transparent and beneficial for both the government and private companies, helping to drive national development.

    How do PPPs work

    The government identifies a need and collaborates with a private company that finances and executes the project. In return, the company receives payment based on the success of the project, ensuring that it meets quality standards.

    Benefits of PPPs

    • Shared financing: The private company provides resources, easing the financial burden on the government.
    • Increased efficiency: Private companies tend to be quicker and more effective in project execution.
    • Shared risks: The risks are distributed between the parties, reducing the government’s load.

    PPPs are an excellent tool for improving public infrastructure, allowing the government to leverage private investment and enhance services for the community.

    Need help in dealing with legal issues related to the PPP, contact ANORCO today for expert legal advice.

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    Need help in dealing with legal issues related to the PPP, contact ANORCO today for expert legal advice.

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  • Work Permit established by special immigration conditions

    Work Permit established by special immigration conditions

    Work Permit established by special immigration conditions

    Pursuant to Executive Decree No. 6 of 2023, relevant changes are introduced in the regulation of labor immigration, including the creation of the category of Work Permit established by special immigration conditions.

    Foreigners who have one of the following immigration categories can apply for said work permit:

    1. National migrant worker from specific countries that maintain friendly, professional, economic and investment relations with the Republic of Panama;
    2. Migrant worker with a Residence Permit authorized by the General      Immigration Regularization program;
    3. Professional migrant worker;
    4. Migrant worker for family reunification for resident dependents.
    5. Students.

    Applicants must comply with the conditions of self-employed or employed, to wit:

    • Self-Employed: when the applicant is found to be properly developing a permitted income-generating activity or is self-employed directly in a condition of economic dependence or legal subordination and not developing activities that are by law for Panamanians.

    For this procedure, a Notice of Operation must be provided in the name of the applicant and the Single Taxpayer Registry and for the extension, an Income Tax Declaration must be submitted.

    • Employed: when the applicant maintains an employment relationship based to an employment contract under the conditions of legal subordination and economic dependence. In this case, the Ministry of Labor will apply the percentage rules established by law for the hiring of foreigners, i.e., 10% or 15% of the Panamanian workforce of the company that does the hiring.

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    Need assistance with your Work Permit application under these new immigration conditions?
    Contact us today for expert guidance on immigration and legal planning!

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  • The IMG or GloBE and its implications

    The IMG or GloBE and its implications

    The IMG or GloBE and its implications

    Since 2017, the G20 and the OECD have collaborated on a project to address the erosion of the tax bases and profit shifting, which is based on two fundamental pillars.

    Pillar One, which seeks to distribute the results obtained by multinational companies, allowing them to be taxed where their clientele is located, and Pillar Two, which proposes establishing an effective global minimum tax of 15% (IMG or GloBE).  For the IMG to be applicable to a company the joint billing (Headquarters and subsidiaries) must reach 750 million euros or its equivalent, amount which is subject to review in 2030.

    The implementation of the IMG seeks greater tax and reputational certainty. However, it also presents challenges for governments in the application of international agreements and treaties, requiring adjustments in national tax legislation, as well as for companies which will have to adjust their guidelines to comply with the new regulations.

    Currently in Panama, the Directorate of International Financial and Fiscal Strategy and the General Directorate of Revenue are currently studying the possible ways of implementing the IMG, without affecting the legal security of close to 10 local Panamanian capital companies and 60% of foreign capital companies located in the country.

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    Ready to navigate the complexities of global taxation?
    Contact one of our expert lawyers in tax planning today for tailored guidance and solutions

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  • Panama Canal prepares to increase ship transits amid rainy season

    Panama Canal prepares to increase ship transits amid rainy season

    Panama Canal Prepares to Increase Ship Transits Amid Rainy Season

    Due to the recent drought that affected the water levels of the Gatun and Alajuela lakes, the Panama Canal was forced to reduce to 27 the daily transit of ships. However, with the onset of the rainy season, the Panama Canal is now preparing to gradually increase the number of ships passing through the locks. In this respect, it is predicted that the daily transits will gradually increase, approaching the normal capacity of 36 transits by late 2024 or early 2025, if weather conditions permit.
     
     
  • The Panama Dry Canal: Strengthening Maritime Logistics

    The Panama Dry Canal: Strengthening Maritime Logistics

    The Panama Dry Canal

    For the purpose of strengthening the growth of the maritime, logistic and national ports national sector, the Cabinet Council approved Executive Decree No. 013 of March 13, 2024, that establishes the Multimodal Dry Canal for Transshipment of Goods of the Republic of Panama, named Omar Torrijos Herrera, and dictates other provisions.

    This regulation is complementary to the Central American Uniform Customs Code and its regulations, with the objective of declaring the Dry Canal as the only primary zone of special jurisdiction of the multimodal customs territory for the transshipment of goods of the Republic of Panama.

    The Dry Canal is integrated by: the railways, roads, highways, international airports, free zones, special economic areas, ports, border crossings and other areas and/or private companies that provide logistics services.

    Benefits:

    • Take advantage of the importance of our geographical location, as has been done since the creation of the Isthmus.
    • Integration and strengthening of our logistics platform.
    • Complement for the Panama Canal operations.
  • Artificial Intelligence in Healthcare: Revolutionizing Patient Care

    Artificial Intelligence in Healthcare: Revolutionizing Patient Care

    Artificial Intelligence in the field of Healthcare

    In the field of healthcare, Artificial Intelligence has brought with it a revolutionary promise of unparalleled change and progress.

    One of its greatest achievements has been the ability to analyze large amounts of medical data in record time. Artificial Intelligence algorithms can identify patterns and trends in medical images, such as X-rays or MRI scans, helping doctors detect diseases at early stages.

    Artificial Intelligence drives personalized medicine, as its systems can analyze a patient’s genetic and clinical data to recommend treatments tailored to their unique profile, improving efficiency and reducing side effects.

    It is also having a notable impact on patient care. Artificial Intelligence chatbots and telemedicine systems can provide 24/7 medical guidance, improving access to healthcare, especially in remote or medically underserved areas.

  • Understanding Artificial Intelligence: Applications and Impact

    Understanding Artificial Intelligence: Applications and Impact

    ARTIFICIAL INTELLIGENCE

    What is Artificial Intelligence?

    Artificial Intelligence, known by its initials as AI, is a computer field that focuses on developing systems and programs capable of imitating and performing tasks that normally require human intelligence.

    What tasks are included?

    These tasks include learning, problem solving, natural language understanding, pattern recognition and decision making.

    Which are the best known and most used today?

    • Artificial Intelligence in the field of healthcare.
    • Virtual assistants such as Alexa, Google assistant or Siri.
    • Automatic translators such as Google translator.
    • Systems recommendation such as the YouTube digital platform.
    • Chatbots such as ChatGPT.
    • Games such as Stockfish.
    • Artificial Intelligence art creators like Midjourney.
    • Vehicle driving like Tesla Autopilot.
  • Panama’s Global Leadership in Ship Registry: Latest Updates

    Panama’s Global Leadership in Ship Registry: Latest Updates

    Panama has maintained its global leadership in Ship Registry

    According to the international platform IHS Markit, Panama has maintained its global leadership in Ship Registry with 8,540 vessels and 251.1 million gross tonnages (GT). By the same token, in the last World Fleet Monitor published this year by Clarksons Research Platform, the Panamanian flag is flown by 16% of the ships that make up the world fleet.

    Of said percentage, 339 ships of new construction, with which the General Directorate of Merchant Marine has managed to get closer to its objective of attracting to Panama vessels of this segment. On the other hand, in order to maintain the standards of the international maritime industry, the Panama Ship Registry canceled ex- officio 161 vessels of around 17 years old, of which an important number of these vessels were related to unreported and not regulated fishing.

    With the measures implemented, Panama remains committed in developing its services in repect to the Registry of Vessels, by promoting the decarbonization of the industry, in order to optimize its assistance to shipowners worldwide.

  • New Minimum Wage Rates in Panama: Executive Decree No. 1 of 2024

    New Minimum Wage Rates in Panama: Executive Decree No. 1 of 2024

    New Minimum Wage in Panama

    Executive Decree No. 1 of 10 January 2024 (the Executive Decree), determines the new minimum wage rates in the Republic of Panama, applicable by region and activity.

    The regions.

    • Region 1: Integrated by: Panama, Colon , San Miguelito, David, Santiago, Chitre, Aguadulce, Penonome, Bocas del Toro, La Chorrera, Arraijan, Capira, Chame, Anton, Nata, Las Tablas, Bugaba, Boquete, Taboga, San Carlos, Chepo, Guarare, Los Santos, Pedasi, Dolega, San Felix, Baru, Boqueron, Portobelo, Donoso, Santa Isabel, Santa Maria, Parita, Pese, Atalaya, Chanquinola, Chiriqui Grande, Almirante, Tierras Altas, Omar Torrijos Herrera.
    • Region 2: The rest of the country.

    The minimum wage.

    The Executive Decree increases the minimum wage in all the regions of the country.

    • The minimum wage increase applies as follows:
    • An increase of 4.5% in all small enterprises
    • An increase of 6% in all large enterprises
    • An increase of 7% applicable to all enterprises of the banana sector.
  • Panama Prohibits Import and Sale of Electronic Cigarettes

    Panama Prohibits Import and Sale of Electronic Cigarettes

    Panama Prohibits Import and Sale of Electronic Cigarettes: What You Need to Know

     

    Law 315 of 2022 prohibits the use in the Republic of Panama of electronic nicotine delivery systems, electronic cigarettes, vaporizers, tobacco warmers and other similar devices, with or without nicotine, in places where the consumption of tobacco products is prohibited and the marketing of these products throughout the country.

     

    It is also prohibited, the purchase or promotion of electronic nicotine delivery systems, electronic cigarettes, vaporizers, tobacco warmers and other similar devices, with or without nicotine, over the Internet in the Republic of Panama.

     

    Excepted from this prohibition is the importation of said products in free zones and special economic areas established in the Republic of Panama, for the purpose of exporting and re-exporting to a third country.

  • PROPANAMA: Executive Decree No. 22 of 2023 in Panama

    PROPANAMA: Executive Decree No. 22 of 2023 in Panama

    Regulation of PROPANAMA: Executive Decree No. 22 of 2023 in Panama

     

    Executive Decree No. 22 of 2023, regulates Law 207 of 2021 in Panama that establishes the Authority for the Impulse of Investments and the Promotion of Exports of Panama (PROPANAMA). In this sense, PROPANAMA is established as a legal entity under public law with autonomy in its financial and operational management, which purpose is to impulse investment and export activities in the country.

  • Streamlining Maritime Procedures: Introducing REN

    Streamlining Maritime Procedures: Introducing REN

    Streamlining Maritime Procedures: REN (Maritime Procedures System and Electronic Register of Ships)

     

    The Panama Maritime Authority, as part of its technological modernization plan, has carried out the necessary administrative steps to update the technological platforms used by the Panama Ship Registry.

     

    This project seeks to unify the flag registration process between the Directorate General of Merchant Marine and the registration of the title to property deeds of the vessels in the Directorate of Public Registry of Ship Ownership.

     

    Qualities that the new REN technology platform will have:

     

    • Efficiency, speed and improvement in the quality of the services provided.
    • Facilitates access to information.
    • Ensures the confidentiality of the data.
    • Automatic notification on the progress of the procedures or applications.
    • Enquiries, follow-up and follow-up of procedures or applications  remotely from anywhere in the world.
    • Institutional payment gateway that will allow payment by credit or debit card.
    • Minimizes the requirement and handling of physical documentation within the processes.
    • Application of authentication and digital security in document management, integrating the qualified electronic signature to the processes for a complete traceability of the process and the generation of documents and electronic certificates.

     

    Source: PMA Update Bulletin in its third edition of 2023