News: Panama introduces EMMA special tax regime

The National Assembly of Panama approved introduction of special tax regime. It is called EMMA and establishes special rules for operation of international organizations providing the production services.  

The special tax regime is required to help business overcome the coronavirus pandemic consequences. The tax regime is temporary and will be canceled as soon as the country’s economy recovers after financial crisis.

The companies will get a whole range of exemptions. In particular, the tax regime provides for the tax break up to 5% for the next 5 years after company registration in EMMA tax regime. The employees of organizations will be able to claim a 50% bonus for working on holidays as well a 25% bonus for working overtime.  

The companies, which were prevented from applying EMMA special tax regime for any reason whatsoever, will be able to repeatedly undergo the compliance procedure. For this, they need to apply to the international organization licensing commission.  

Law&Trust law firm offers services for the companies working on the territory of Panama. Our experts will tell how to take advantage of EMMA tax regime and will help to prepare all necessary documents.