The following is a statement issued by Eneas Mares, General Manager of Enfasis Corporativo, a strategic corporate consulting firm specialized in the tourism, banking and financial and commercial sectors in Latin Americain response to the repeal of Acts 122 and 314 on tourism incentives in Panama.
Buenos Aires, Argentina, August 11, 2022 /PRNewswire/ — “of Panama President Laurentino Cortiso ordered the repeal of Acts 122 and 314, both tourism promotion laws seeking foreign investment.
“These laws were approved twice in the last 2 years by an overwhelming majority in the National Assembly and each time they were signed by the President and members of his cabinet; these laws generated a lot of interest, stimulating entrepreneurs and investors from United States and other countries to invest millions of dollars that may now be at risk.
“In the more than two years that Act 122, the Tourism Investment Act, has been in effect, the tourism authority has held road shows not only in United States but other countries attracting the attention of the international investment community; foreign investors from all over the world have dedicated, in good faith, enormous time and economic resources to participate in this investment opportunity that promises to position Panama as one of the best tourist destinations in the region.
“This investment law has attracted so much attention that it is currently being mentioned in of Panama Investment Climate Report issued by the US Department of State; of Panama heritage as a country where the security of the law is respected has always set it apart from others and made it one of the safest places in Latin America in which foreigners can invest.
“As a result, less than two months ago, the original Law 122 was amended in the National Assembly with the new Law 314, which reduced fiscal incentives by almost half and further regulated the legislation.
“The country is expected to get a complete tourist offer, where it is most needed, positioning Panama among the best tourist destinations in the region. The consulting firm Virtu Atelier Legal explained in one of its reports that under Law 122, investors will be granted a tax credit of 100% of their investment. This incentive will be granted to a natural or legal person who, on the Panamanian stock market, is the first buyer of the securities issued by the tourism company or real estate investment company; the first acquirer must submit an affidavit certifying that, immediately before the acquisition of the securities, neither he nor his directors, officers, shareholders or beneficial owners were directors, officers, shareholders or beneficial owners of the tourism company or investment company, real estate, nor any subsidiaries of the tourism projects in which they have invested; in addition, other restrictions are in place to ensure that there are no ties to the project developer’.
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For Law 122:
Law 122 was approved by the National Assembly and sanctioned by President Cortizo on December 312019. Later it was fully regulated by decree 364 c July 2020signed again by President Cortizo and the Minister of Finance Hector Alexander. Recently, Law 122 was changed to Law 314 by the National Assembly and re-signed by President Cortizo and the Minister of Finance Hector Alexander On June 212022. The world is closely following the important work of of Panama National Assembly where the faith of of Panama a promising future of tourism and a climate for foreign investment will be defined.
SOURCE CORPORATE ACCENT