PANAMA

On August 9, the Committee of Trade and Economic Affairs of the National Assembly created a subcommittee to analyze Bill 620 which introduces modifications to the legal regime that regulates the Colon Free Zone (ZLC in Spanish). The text proposes to allow the realization of activities related to electronic commerce operations within said economic zone. The subcommittee is expected to begin studying the bill in the short term.

The body that will study the bill will be composed of deputies Alejandro Castillero (PRD – ruling party), Cenobia Vargas (PRD – ruling party) and Nelson Jackson (PCD – opposition).

The text, submitted by the Executive Branch, proposes that users of the ZLC will be exempted from income tax on incomes derived from a series of activities. Among those included are individual sales to nationals and/or foreigners through electronic commerce. Likewise, it is established that merchandise and other articles or trade effects entering the ZLC will be exempted at all times from the payment of taxes.

However, it indicates that for transactions through individual or unitary electronic commerce, charges may be established in such zone when using such means of transaction. Regarding the dispatch of fast delivery shipments, it establishes that benefits negotiated by Panama in international treaties, conventions and agreements will be applied.