The establishment of five new companies included in the list “Headquarters of Multinational Companies” was recently confirmed. These are Visa, Inc. and McKinsey & Company, Inc. (both from the United States), Panalpina World Transport LTD. (Parent company in Switzerland), Hankook Tire Co., Ltd. (South Korea) and the manufacturer of CRRC Corporation Limited trains (People’s Republic of China).
This translates into an investment of more than $3 million and at least 75 jobs in the first year of operations.
Multinational companies look to Panama to establish their regional headquarters for the benefits offered by the country (through the SEM Law) and for its geographical position and connectivity. It is important to motivate these multinationals to transfer knowledge to the Panamanian workforce.
Law 41 of August 24, 2007 has created the special regime for the establishment and operation of Multinational Company Headquarters. Among these benefits are: the exemption of the payment of Income Tax (ISR), of the Transfer Tax of Movable Personal Property and the Provision of Services, of the dividends and complementary tax, and the use of Fiscal equipment; and they may also reach fiscal agreements with the Ministry of Economy and Finance (MEF) for the consolidation of their profits and the payment of taxes for the income obtained in various countries.
