Panamá como valor agregado a las empresas SEM: una reflexión 10 años después

10 years have passed since Law  41 of 2007 was enacted in Panama , which created the Special Regime for the establishment and operation of  Headquarters of Multinational Companies  (SEM). Since that date,  134 licenses  for SEM companies have been issued in Panama, according to figures from the Directorate of Multinational Company Headquarters of the Ministry of Commerce and Industries, allowing these companies to carry out administration, accounting, parts logistics, finance activities. , operations support and other activities permitted to its subsidiaries in other parts of the world.

The  attractiveness of Panama  for the SEM has been widely discussed, especially in relation to the  immigration, fiscal and labor benefits  it provides; even more so because, until December 2016, the establishment of these companies represented more than US$820 million dollars in direct investment for Panama and the generation of more than 5,500 jobs between foreigners and nationals, according to the Directorate of Headquarters of Panama. Multinational companies.

Without a doubt, Panama has become a magnet for multinational companies: last year alone, 25 SEM licenses were granted,  the largest annual increase in ten years . But, after these two decades,  how is the country preparing to continue being an attractive focus for foreign investment? What challenges or opportunities does the country have in terms of the evolution of this law?

Some particularities of the SEM Law that attracts these companies is that it allows them to hire trusted foreign personnel and executives without the need to comply with the maximum percentage of 10% -15% that is required of established companies that carry out operations in our country. In addition, they will be exempt from paying income tax when their salaries come from the parent company. Like them, the multinational company itself will be exempt from paying income tax for the services provided under the SEM License, as long as the company provides those services abroad and does not generate taxable income in Panama. It will also be exempt from payment of the Tax on the Transfer of Movable Property and Services, from the payment of dividends and from the complementary tax.

If we consider these benefits granted by the SEM Law, our country provides other  intangible benefits  as added value that make it a center to attract investments, such as our privileged geographical position ,  connectivity  with the entire continent through the  hub  of the Americas,  logistical facilities  and the proximity between the two oceans. Also,  telecommunications , since seven fiber optic cables pass through Panama and, in addition, the facilities offered by the Panama Canal. We even benefit from the time zone, which is convenient for the most important shopping centers on the continent and a  dollarized currency  that creates economic stability with much lower inflation rates compared to the currencies of other Latin American countries.

In addition to the above, we must highlight that Panama is a politically stable country, which has enjoyed alternation in government for the last 27 years.

A decade after the promulgation of the SEM Law  and considering the social, political and economic events that have occurred worldwide and in our country, particularly its constant economic growth, it is necessary for Panama to make  some positive changes to this Law  and evolve to attract more multinational companies . Perhaps, including more activities that companies can carry out; conduct staff training to develop and discover new talents, as well as attract and promote the transfer of knowledge.

Finally, the proposals and experiences of the multinational companies with an SEM License or those that aspire to have it must be studied,  evaluate the new challenges  that the country has and thus make an  analysis and balance  of the actions that can be taken to benefit the Regime. special headquarters of multinational companies.