Arosemena Noriega & Contreras

Author: anorcodigitalweb

  • The Impact of El Niño on the Panama Canal: Drought and Transit Restrictions

    The Impact of El Niño on the Panama Canal: Drought and Transit Restrictions

    The Impact of El Niño on the Panama Canal: Drought and Transit Restrictions

     

    Among the effects of the El Niño climate phenomenon in Panama, is there are very intense rains towards the Atlantic slope that cause flooding and a decrease in rainfall towards the regions located on the Pacific slope and an increase in the Caribbean slope.

     

    This decrease in the Pacific slope has caused a drought in the Panama Canal, which is reflected both in the canal’s budget for the next fiscal year and in its water condition. According to the Canal Administration, it is estimated that this condition will continue until September of next year, which translates into a draft of 44 feet and daily transit limited to between 30 and 22 vessels, instead of the 36 to 38 vessels that They regularly transited the Panama Canal.

     

     

  • Dollarization- Panama's Unusual Currency Journey

    Dollarization- Panama's Unusual Currency Journey

    Dollarization – Panama’s Unusual Currency Journey

    Why did Panama adopt the U.S. dollar as its official currency?

    Panama’s adoption of the U.S. dollar as its official currency in 1904 marked a crucial turning point in its economic history. The decision to dollarize was driven by several factors, including a need for economic stability and international credibility.

    Before dollarization, Panama used the Colombian peso as its official currency. However, this led to economic instability and currency devaluation. To address these issues and attract foreign investment, Panama made the bold move to adopt the U.S. dollar.

    The Dollarization Map

    What are the benefits and challenges of using the U.S. dollar in Panama’s economy?

    Panama’s unique currency system of dollarization offers several benefits. It provides stability by linking Panama’s economy directly to the robust U.S. dollar. This stability has resulted in low inflation rates and increased investor confidence.

    However, dollarization also presents challenges. Panama has limited control over its monetary policy, as it cannot print its own currency. Additionally, it must ensure a steady supply of U.S. dollars to meet its economic needs. Despite these challenges, the benefits of dollarization have far outweighed the drawbacks, contributing to Panama’s economic success.

  • Social Progress in Panama- Healthcare and Education Milestones

    Social Progress in Panama- Healthcare and Education Milestones

    Social Progress in Panama – Healthcare and Education Milestones

     

    How has healthcare improved in Panama over the past century?

    Panama has made significant strides in improving its healthcare system over the last century. Access to medical services has expanded, resulting in better healthcare outcomes for the population. The government has invested in healthcare infrastructure, leading to the construction of modern hospitals and clinics across the country.

     

    Additionally, healthcare professionals in Panama have received advanced training, enhancing the quality of medical care available to citizens. These improvements have contributed to increased life expectancy and reduced mortality rates.

     

    What progress has Panama made in education, and how has it impacted society?

    Panama has made substantial progress in its education sector, with a focus on increasing access to quality education. Investment in educational infrastructure, teacher training, and curriculum development has led to improved educational outcomes.

     

    These advancements in education have a profound impact on society by empowering individuals with knowledge and skills. A well-educated population is better equipped to contribute to the workforce, drive economic growth, and participate in the nation’s development. Education has become a cornerstone of Panama’s social progress, paving the way for a brighter future.

  • Types of Trademarks

    Types of Trademarks

    Types of Trademarks

     

    Law 35 of 1996 (modified by Law 61 of 2012), in Article 90, establishes the elements that can constitute trademarks. Some of these elements are: words, images, figures, symbols and graphics, three-dimensional shapes, colors, sounds, smells or flavors.

     

    Consequently, the types of trademark can be:

     

    DENOMINATIVE

    Consists exclusively of words or letters, numbers or other customary typographical characters or a combination thereof that can be written.

     

    FIGURATIVE

    Consists only of figures, images, color combinations, symbols or drawings, without incorporating words, letters or numbers.

     

    MIXED

    Are a combination of verbal and figurative elements.

     

    OLFACTORY

    Consists in the use of a scent, aroma or fragrance as a distinctive and exclusive feature of a trademark.

     

    SONOROUS

    Consists exclusively of a sound or a combination of sounds.

     

    THREE-DIMENSIONAL

    Are trademarks that permit the recognition or identification of a product by means of its shape, container and packaging.

  • Understanding Trademark Misuse Consequences

    Understanding Trademark Misuse Consequences

    Understanding Trademark Misuse Consequences

     

    Executive Decree No. 466 of 2015, which modifies Executive Decree No. 123 of 1996, establishes the scope of application that the National Customs Authority (NCA) has to  apply sanctions when the provisions of the laws on industrial property, copyright and their related rights are violated.

     

    When the NCA retains merchandise in process or in transit, it will carry out an inventory and official appraisal of the retained merchandise and notify by edict the owner of the protected right, the consignee of the merchandise, and interested third parties.

     

    Once the owner of the protected right has been notified, he may present opposition to the transit or processing of the merchandise in the NCA. If no opposition is filed, the merchandise will be released.

     

    In the event that an opposition has been filed and the bond has been deposited, the NCA   will send the merchandise retained for custody outside the port area to the Public Ministry and the investigation phase will continue.

  • Understanding ITBMS Rates in Panama: 7%, 10%, and 15%

    Understanding ITBMS Rates in Panama: 7%, 10%, and 15%

    SME and their ITBMS TAX  obligations

     

    For small and medium-sized companies in Panama, the Transfer Tax on Personal Property and Services (known by the Spanish acronym of ITBMS) is similar to the value-added tax that exists in other countries.

     

    The following are some important aspects that small and medium-sized companies should take into consideration:

     

    1. REGISTRATION: When the annual income of the companies exceeds USD$36,000.00, they must register as a taxpayer of the ITBMS with the Directorate General of Income (DGI);
    2. BILLING AND DECLARATIONS: Companies must issue invoices that include the ITBMS in their sales of goods and services;
    3. ITBMS RATES: In Panama, there are different ITBMS rates: 7%, 10%, and 15%. It is important that small and medium-sized companies know what rates apply to their products or services;
    4. EXEMPTIONS AND REDUCED RATES: Some goods and services are exempt from the ITBMS, while others may have reduced rates. The companies should be informed on the exemptions and reduced rates applicable to their business in order to properly comply with the tax regulations;
    5. TAX ADVICE: Due to the complexity of the tax legislation and possible updates, it is advisable to seek tax advice to ensure correct compliance with the obligations related to the ITBMS and other taxes.
  • United States and Panama: Strategic Semiconductor Supply Chain Partnership

    United States and Panama: Strategic Semiconductor Supply Chain Partnership

    United States Chooses Panama to Strengthen Semiconductor Supply Chain

     

    The United States has chosen Panama as a strategic partner to strengthen the semiconductor supply chain. Panama’s geographical location and political and economic stability make it a key logistics center. This partnership will benefit both countries by diversifying the supply chain and creating economic and technological opportunities for Panama. The collaboration promises to drive sustainable development and regional competitiveness in the digital era.

  • All about trademarks – Part II

    All about trademarks – Part II

    All about trademarks (II)

    August 30, 2023

    How are trademarks classified?

    Trademarks are classified as product trademarks and service trademarks.

     

    Is there a trademark classification system?

    The trademark classification system is called the Niza Classification. It is an international classification that applies to the registration of trademarks and consists composed of 45 classes distributed as follows: from class 1 to class 34, is the classification of products, and from class 35 to class 45, is the classification of services.

     

    Did you know that in Panama there is a class 0?

    Panama is the only country that uses a class 0 to classify trade name records.  This classification covers the trade name of a company or industrial, commercial, or service establishment.

  • Frequently asked questions about the Single and Private Registry of Final Beneficiaries

    Frequently asked questions about the Single and Private Registry of Final Beneficiaries

    Frequently asked questions about the Single and Private Registry of Final Beneficiaries

     

    1. What is the Single and Private Registry of Final Beneficiaries (known by the Spanish acronym of RUBF)?

    It is a system whereby lawyers that offer the services of resident agent, register the legal entities that they represent and their final beneficiaries.

     

    1. What is the entity responsible for ensuring compliance?

    The Superintendence of Non-Financial Subjects (known by the Spanish acronym of SSNF).

     

    1. Is the registration to the RUBF mandatory?

    All resident agents have the obligation to register with the RUBF.

     

    1. Is there any cost to register with the RUBF?

    There are no registration costs.

     

    1. What are the steps to follow to comply with the RUBF?

            ◦ Register as a resident agent;

            ◦ Register the corporation; and

            ◦ Register the final beneficiaries.

     

    1. Legal basis?

             Law 129 of 2020 and Executive Decree No.13 of 2022.

  • Single and Private Registry of Final Beneficiaries in Panama: Enhancing Transparency and Combating Money Laundering

    Single and Private Registry of Final Beneficiaries in Panama: Enhancing Transparency and Combating Money Laundering

    Single and Private Registry of Final Beneficiaries of Legal Entities in Panama: Transparency and Fight against Money Laundering

     

    Pursuant to Law 129 of 2020 and Executive Decree No. 13 of 2022, the Single and Private Registry of Final Beneficiaries of Legal Entities (known by the Spanish acronym of RUBF) was created, as a tool that promotes transparency in the financial system, prevents money laundering, fights against terrorist financing and strengthens the integrity of the business system of the country.

     

    The resident agents are required to register in the RUBF and to provide the following information:

     

    • Data of the legal entity; and
    • Data of the final beneficiaries.

     

    The law designates the Superintendency of Non-Financial Subjects, as the governmental entity responsible for the administration and custody of the RUBF.

  • Electronic Billing in Panama: Taxpayer Obligations and Exemptions

    Electronic Billing in Panama: Taxpayer Obligations and Exemptions

    Electronic Billing in Panama

     

    Pursuant to Decree No. 147 of May 26, 2021, obligations are established, requiring that all taxpayers, be they persons or juridical entities, must issue invoices or equivalent documents to legitimize their operations, otherwise, sanctions may be imposed.

     

    In this regard, the liberal, artisan, and artistic professions, carried out independently or through civil companies, are exempt from the use of a fiscal printer.  Consequently, lawyers are exempt from the obligation to of invoicing using fiscal equipment, however, they can adopt the Electronic Billing model.

  • Qualship 21 Program: Ensuring Safe Maritime Trade and Environmental Commitment

    Qualship 21 Program: Ensuring Safe Maritime Trade and Environmental Commitment

    Qualship 21 Program

     

    This year the Panama Maritime Authority (PMA), marked a milestone by entering the “Qualship 21 Program”.

     

    The Qualship 21 Program is a recognition program implemented by the United States Coast Guard, as of January 1, 2001, with the purpose of insuring safe maritime trade and committed to the environment.

     

    Among the incentives offered by Qualship 21 Program the following standout: (I) for all vessels, the registration is valid for three years and the name of the vessel is posted on the US Coast Guard and EQUASIS website; (ii) for Tank Vessels, Certificate of Compliance (COC) annual examination reduced in scope; (iii) for Freight Vessels, three years of limited Port State Control (PSC) oversight and for Passenger Vessels, reduced scope for the environmental portion of the examination during COC periodic examination.

     

    To qualify for the Qualship 21 Program, the vessels must abide by the policies and requirements established in the program, which encourage those exemplary vessels that have shown compliance and good environmental management.

     

    The list of fully qualified flag administrations is updated on June 30th of each year.

  • All about trademarks

    All about trademarks

    All about Trademarks!

     
    What is a trademark?

    It is a distinctive sign that allows to differentiate and distinguish goods or services that have been produced or provided by a person or company.

     

    Why register a trademark?

    A trademark is an intangible asset that represents one of the main assets of a person or company. 

    Consequently, registering a trademark product or service grants the owner the exclusive use of said trademark.

     

    What’s the Trademark protection period?

    The protection period of a product or service trademark is 10 renewable years.

     

    Panama legal basis

    Law 35 of May 10, 1996, amended by Law 61 of October 5, 2012.

  • What is PROMTUR?

    What is PROMTUR?

    What is PROMTUR, how was it created, and what do they do?

     

    On April 26, 2023, Mr. Carlos R. de la Guardia, an attorney from our firm, attended the Executive Meeting organized by the Chamber of Commerce, Industries, and Agriculture of Panama, where the topic “Consumption and Tourism” was discussed.

     

    The presentation focused on the consumer trend and above all, the present tourism situation in the country and the role that PROMTUR Panama plays in this respect.

     

    PROMTUR Panama is a destination marketing organization, created by Law 9 of 2017, to promote Panama as a world-class tourist destination and create the Trademark (Panamá Vive por Más or English Panama Lives for More).

     

    PROMTUR Panama meets its objectives by working jointly with the Panama Tourism Authority and the private sector; to position Panama as a world-class destination with the purpose of increasing the number of tourists entering the country, lengthening their stay, and boosting revenue for the State.

  • How to obtain a Panama Residence Card in 30 days?

    How to obtain a Panama Residence Card in 30 days?

    Invest in Panama and get a Permanent Residence in 30 Days

     

    The investment can be:

     

    Real Estate Investment: until October 15, 2024, the sum of $300,000.00, after that date the investment must be $500,000.00.

     

    Stock Market: The sum of $500,000.00

     

    Fixed Term Deposit: The sum of $750,000.00

  • Combating Animal Abuse in Panama: Laws and Associated Penalties

    Combating Animal Abuse in Panama: Laws and Associated Penalties

    Animal Protection Law

     

    Animal abuse is a social problem that has long been neglected in Panama. Animals are constantly mistreated, thus violating their lives, by people who do not understand that they are able to feel the same pain and suffering as humans.

     

    In Panama, Law 70 of 2012, amended by Law 133 of 2020, grants judges the power to sanction conduct that constitutes animal abuse. In this regard, the penalties contained in the Penal Code have been increased, which means that today anyone who causes death or serious injury to an animal faces a penalty of 2 to 4 years of prison.

     

    In addition, misdemeanors such as negligence, abandonment, and injuries to animals are the responsibility of the justices of the peace and involve fines ranging from US$100.00 to US$1,000.00, community work, and attending a 40-hour course against abuse and animal rights.