The Tax Team of Morgan & Morgan invited a group of clients to a breakfast-discussion table where the last updates and news on tax issues were presented. In front of a full house, partner Enrique Jimenez, and lawyers Adolfo Campos, Amanda Barraza and Carlos Sinisterra (CPA) talked with clients about the changes and amendments that have been made to the laws and entities on this subject.
Thus, Morgan & Morgan reaffirms its commitment as a leading firm in tax and fiscal matters, always ahead in benefit of their clients.
About Morgan & Morgan
Morgan & Morgan advises companies and individuals in matters pertaining to the Panamanian taxation system, including special taxes regimes. The firm has an experienced team of attorneys with broad knowledge in tax law addressing all sorts of industries, such as, financial services, technology, shipping, energy, real estate, intellectual property, retail and wholesale business, who can readily identify obstacles and solutions but mostly the opportunities clients can expect to achieve upon making business in Panama.
By: Amanda Barraza de Wong, Associate, Tax Law
With Panama being a jurisdiction whose tax system is based on the Principle of Territoriality, and whose economy revolves around financial, legal and logistic services… what policy should it have with regards to foreign capital? Certainly a policy for attracting direct foreign investment. Capital that provides financing for development itself. And that capital does not arrive alone; it is accompanied by natural or legal persons, which motivates the analysis of whether to consider them tax residents or not.
In Panama, we have specific criteria to determine after a study of each particular case, whether a natural or legal person can be considered a tax resident under the provisions of both the Tax Code and the Treaties to Avoid Double Taxation in force.
Tax residence certificate
The residential tax certificate is the document that accredits a person, being a natural or legal person, his/her tax residence in our country and it is only issued by the General Directorate of Revenues (DGI) based on article 762-N of the Tax Code, Executive Decree 958 of 2013 and regulatory resolutions.
The basic requirements established by the DGI for the issuance of the Tax Residence Certificate in the Republic of Panama are the following, in addition to the criteria that underlie the analysis:
- Petition addressed to the DGI containing:
- Clear and express identification of the applicant.
- Specification of the tax treaty or agreement to which it wishes to be allocated, when applicable.
- Original Public Registry Certificate, in the case of legal persons.
- Copy of identity card or passport of the applicant or the Legal Representative.
- Power of attorney, in case of legal persons.
- Other relevant evidence.
Since the fiscal year 2010, there have been several regulations issued on this concept; it is a topic that has been developed particularly over time and we believe that it will continue to evolve.
Amanda Barraza de Wong, associate of Morgan & Morgan, participated as speaker in the Annual Congress of Accounting and Taxation (CACOTYF-Panama 2017), held on October 3 and 4 in Panama City.
Morgan & Morgan was also a sponsor of this event which brought together professionals from diverse areas who engage into a great number of presentations. Among these, the presentation of Mrs. Barraza de Wong on the “Tax Residence”, its requirements, uses and considerations, which both natural and juridical persons should take into consideration to apply as tax residents according to what says both the Fiscal Code as the Treaties to Avoid Double Taxation.
Mrs. Barraza de Wong is an associate attorney at the firm’s Tax Department. She has 25 years of experience in tax departments of important international auditing firms, as well as in the General Department of Revenue and the Ministry of Finance, as a tax lawyer. In developing its legal practice, she has advised multiple companies on the tax contingencies of the various forms of hiring foreign personnel in Panama, and has a broad vision of the practices used by corporations to address the filings and forms required to be in compliance with tax regulations.
Attorneys Carlos Ernesto Gonzalez Ramirez, Ana Cristina Castrellon and Amanda Barraza de Wong, partner and associates of Morgan & Morgan, respectively, took part in the Law and Tax Forum, “Competitive Advantages of Panama to create Added Value: Opportunities and Challenges of the main Special Laws”.
The event, organized by the American Chamber of Commerce and Industry of Panama (AmCham) was attended by the Deputy Ministry of Foreign Commerce, Nestor Gonzalez, who discussed the Free Zone in Panama with a view to promoting economic development and achieving Panama’s main goal: to become a foreign investment hub for the production and processing of goods and services in the upcoming years. Also discussed, the opportunities and challenges for Panama based on its main special economic laws such as the Multinational Company Seat, the Colon Free Zone, the Panama-Pacific area, and free zones, among others.
En días pasados, los abogados Carlos Ernesto González Ramírez, Ana Cristina Castrellón y Amanda Barraza de Wong, socio y asociadas de Morgan & Morgan, respectivamente, participaron en el Foro de Legislación e Impuestos: “Ventajas Competitivas de Panamá para la Generación de Valor Agregado: Oportunidades y Desafíos en los Principales Regímenes Especiales”.
El evento, organizado por el American Chamber of Commerce and Industry. of Panama (Amcham), contó con la asistencia del Viceministro de Comercio Exterior, Néstor González quien abordó el tema de la Zona Franca en Panamá con el deseo de impulsar el desarrollo económico y la meta principal de lograr que Panamá sea un centro de inversión extranjera en actividades de producción y procesamiento de bienes y servicios durante los próximos años. También se abordaron temas sobre las oportunidades y retos que tiene Panamá a raíz de sus principales regímenes económicos especiales como lo son las Sedes de Empresas Multinacionales, la Zona Libre de Colón, el área Panamá-Pacífico, las Zonas Francas, entre otros.
On August 13, 2014, the Taxation and Legislation Committee of the American Chamber of Commerce of Panama (AmCham) held a meeting where Mr. Francisco Arias G., partner of Morgan & Morgan, talked about the “Real Estate Investment Company”.
Distinguished professionals from the real estate and audit fields were in the audience, such as KPMG, BDO, Deloitte and law firms such as Tapia Linares & Alfaro, Fabrega & Fabrega; Galindo Arias & Lopez, Sucre & Reyes, BDS Asesores, among others.
There were also present at the meeting lawyers Carlos Hoyos, Ivethe Vega, Adolfo Campos and Amanda Barraza, all associates of Morgan & Morgan.
El 13 de Agosto de 2014, se llevó a cabo la reunión del Comité de Taxation & Legislation de la Cámara Americana de Comercio de Panamá (AmCham), en la cual el Lic. Francisco Arias G., socio de Morgan & Morgan, ofreció una charla del tema “Sociedades de Inversión Inmobiliaria”.
El auditorio estuvo compuesto por distinguidos profesionales de las ramas de bienes raíces y auditoría como: KPMG, BDO, Deloitte y de firmas de abogados como Tapia, Linares & Alfaro, Arias, Fábrega & Fábrega, Galindo, Arias, & López, Sucre, Arias & Reyes, BDS Asesores, entre otros.
En la reunión también participaron los abogados Carlos Hoyos, Ivethe Vega, Adolfo Campos y Amanda Barraza de Wong, todos asociados de Morgan & Morgan.
On June 11, 2014, a tax event was held at the Auditorium in MMG Tower entitled “Talking about Taxation”. The same was organized by the Embassy of Spain in Panama with the support of Morgan & Morgan’s tax team, headed by partner Enrique Jimenez, and associates Amanda Barraza de Wong and Adolfo Campos Barranco.
As part of the activity, an update was offered to a group of participating Spanish companies where the main topic was, “Implementing the Double Taxation Treaty between Panama and Spain”, general premises, benefits and other significant aspects to take into consideration for proper application of tax issues.
Mercedes Arauz de Grimaldo, partner of Morgan & Morgan, and associate Ana Griselda Tribaldos also participated in this activity sharing important facts with the participants on issues related to the labor contracts of Spanish expatriates.
From June 9 to 11, 2014, the III International Congress on Tax Law: Tax and Development, was held at the Sheraton Convention Center, organized by the Administrative Tax Court. Morgan & Morgan participated through its associate Amanda Barraza de Wong, who exposed on the subject, “Overseeing and Determining Tax”.
The activity offered participants the opportunity to learn about new trends and share experiences on the most recent issues in tax law.
On May 27, 2014 an event was held at Hotel Ciudad David, in Chiriqui province, entitled, “Challenges and Opportunities for Taxpayers”. The event was organized by the Tax Law team of Morgan & Morgan, headed by partner Enrique Jimenez and the support of associates Amanda Barraza de Wong and Adolfo Campos Barranco. As part of the activity, a breakfast was offered with tax presentations for clients and friends of the firm in this province.
Several issues of interest were discussed among them, preferential shares, Split-up and merger regulations, tax treaties, income tax on real estate sales, among others of great tax planning significance.
Also at the event, Mercedes Arauz de Grimaldo, partner of Morgan & Morgan, and associates Ana Griselda Tribaldos and Giselle Moncada who together with the administrative staff and lawyers of Morgan & Morgan David, helped planning this successful activity, strengthening the firm’s presence and professional relationship with its clients in this part of the country.
Last January 24, a Tax Colloquy was held in Panama City, organized by the Panamanian Institute of Tax Experts (INSPAT).
Mr. Adolfo Campos, tax expert and associate of Morgan & Morgan, made a presentation on the “Tax Stamp” before a large audience attending the event. Mrs. Amanda Barraza de Wong, associate of Morgan & Morgan, also attended the event on behalf of the firm.
As part of our CSR strategy, on Saturday October 12, 2013, a team of lawyers and volunteers from Morgan & Morgan and Fundalcom participated in a Legal Orientation Day held at Gonzalillo, province of Panama, in collaboration with the Ministry of Social Development and its program Redes Territoriales. A group of 11 people received free legal assistance.
The aim of these Legal Open Houses is to promote access to justice and gender equality in the country’s most vulnerable populations.
Attorneys Amanda Barraza, Marlene Pérez (Fundalcom), Cosme Moreno (Fundalcom), as well as volunteer Belkis Rodriguez (Fundalcom) made up the group that provided services for this initiative.
By participating in this conference, Morgan & Morgan reaffirms its commitment to the Pro Bono Declaration of the Americas being the first Panamanian firm signatory of this initiative.
Como parte de nuestra estrategia de RSE, el pasado sábado 12 de octubre de 2013, un equipo de abogados y voluntarios de Morgan & Morgan y Fundalcom participaron en una Jornada de Orientación Legal llevada a cabo en Gonzalillo, provincia de Panamá, en colaboración con el Ministerio de Desarrollo Social y su programa: Redes Territoriales. Un grupo de 11 personas recibieron asistencia legal gratuita.
El objetivo de estas jornadas es promover el acceso a la justicia y la equidad de género en las poblaciones más vulnerables del país.
El grupo que prestó sus servicios para esta iniciativa estuvo conformado por los abogados Amanda Barraza, Marlene Pérez (Fundalcom), Cosme Moreno (Fundalcom); y la voluntaria Belkis Rodriguez (Fundalcom).
Con su participación en estas jornadas, Morgan & Morgan reafirma su compromiso con la Declaración Pro Bono de las Américas al ser la primera firma panameña signataria de esta iniciativa.