Free zone is a portion of the territory of a country in which there are tax benefits among other non-tax benefits. Among the tax benefits we can mention the exemption from the payment of tariffs on the importation of merchandise, and also the exemption from the payment of some taxes.
Free zones contribute greatly to the economy of the countries, because through their multiple tax, customs, immigration, labor and financial advantages, the incorporation into the world economy through investment is facilitated; promoting technological, economic and social development.
The free zones are of great importance to the economy of the countries, because through their multiple tax advantages, the incorporation into the world economy through investment is facilitated; promoting technological, economic and social development.
Within the free zones you can carry out activities of:
- – Production of goods
- – Logistics services
- – Higher education
- – Scientific investigation
- – Health services
- – General services
Our Structure
The structure of a free zone is based mainly on a strategic location which must be surrounded by excellent access roads and must have a large extension of territory that allows it to grow as operations require it.
- Customs Service and Public Institutions for import and export.
- The structure of its warehouses must be easily modifiable according to the needs of the companies.
- Customs Service and Public Institutions for import and export.
- The structure of its warehouses must be easily modifiable according to the needs of the companies.
- They must have adequate water supply and sanitary drainage systems for all the activities that are going to be carried out there.
- It is necessary that they have electrical distribution networks with high capacities that are able to satisfy the requirements of the companies.
Companies that are installed in a free zone have a series of requirements that must be met in order to operate legally:
- Invest in their activities an amount not less than the capital indicated in the respective application.
- Start the investment, within a period not exceeding one year, counting from its registration in the Official Register of Companies Established in Free Zones.
- Start the activity within a period not exceeding two years, counted from the date of registration in the respective registry, except in cases where the nature of the company’s activity requires a longer period.
- Hire Panamanian workers, with the exception of foreign experts, technicians and trusted personnel that are necessary for the development of the operation.
- Offer Panamanian workers technological training, related to the specialties of their respective production lines and related activities.
- Comply with current regulations or those that are issued in relation to the recovery and protection of the environment, control and elimination of pollution, conservation of green and marine areas, hygiene and safety measures at work and all the provisions that are issued for the protection of flora and fauna.
- Submit annually to the National Commission of Free Zones a statistical report with the following information: jobs, investment made, amount and type of goods or services produced and inputs used and main destination markets.