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Panama – City of Knowledge offers no taxes for research and high tech corporations

November 28, 2012

Panama has established City of Knowledge in order to attract research and high tech corporations. This includes internet commerce, bio and nano tech corporations. Only 15 minutes drive from down town Panama City it also offer great life style possibilities.

 

Panama City, Republic of Panama     Picture courtesy of Photoatlas

City of Knowledge

Being part of the City of Knowledge implies a commitment to innovation and sustainable development, but it also involves a broad range of benefits designed to make your operations more effective.

Here are some of the direct benefits for affiliates and users recognized by the City of Knowledge:

  1. Tax and immigration benefits through affiliation to the City of Knowledge Foundation project.
  2. Telecommunications, IT and educational technology services, including an intelligent high-tech center with the required capacity for teleconferences, distance learning, fast internet connections, and other services.
  1. A Point of Presence -POP- with direct access to the land portion of 5 International Fiber Optic cables that go across Panama (PAC, SAC, ARCOS, Pan-American and MAYA).
  2. Infrastructure and buildings in good maintenance condition, easily adaptable to various uses.
  3. Technical, administrative and consulting services. Constant electricity flow (99.9%) with redundant power supply from the Panama Canal thermal plant located 300 m (328 yards) away in the Miraflores locks.
  4. Complementary accommodation and catering service.
  5. Sports and recreation facilities.
  6. Access to the major higher learning and scientific research centers in the country.
  7. Access to the Panama Canal Basin, a living laboratory for scientific research and technological innovation on advanced tropical ecosystem management.
  8. Central location: next to the Panama Canal, 15 minutes from downtown Panama City, 5 minutes from Amador resort and 45 minutes from Colón city, located on the Atlantic entrance to the Panama Canal.

Here are the incentives for those participating in the project under Executive Order # 6 of February 10, 1998, which states the basis for the Panamanian State’s support to the City of Knowledge Foundation.

Tax Benefits

  1. Exemption from all taxes, levies, fees or import duties on machines, equipment, furniture, vehicles, appliances or materials necessary for the operation of companies accepted into the City of Knowledge Technopark.
  2. Exemption from Service and Personal Tangible Asset Transfer Tax (ITBMS) on machinery, equipment, vehicles, appliances and materials purchased or necessary for the operation of companies accepted into the City of Knowledge Technopark.
  3. Exemption from any taxes, fees, duties or levies on overseas money remittance when such money remittance or transfer is done for the purposes of companies accepted into the City of Knowledge Technopark.
  4. Innovating companies producing, assembling or processing high-tech goods or rendering similar services for sale in the local or international market at the International Technopark of Panama (ITP) will have the following benefits:
    1. Their activities, operations, transactions, procedures and transfers of personal and real property, purchase and import of equipment and construction material, raw materials, machinery, tools, accessories and supplies will be a hundred percent free of direct taxes, levies, fees, duties and national taxes. This includes income tax exemption for companies.
    2. Their capital will be free from direct national taxes, including patent or license tax.

Immigration Benefits

The State will grant special visas to foreign staff entering the country to contribute to the development of the City of Knowledge project. For further information, see the Immigration and Naturalization Bureau website.

Labor Benefits

Companies affiliated to the City of Knowledge are authorized to hire any international staff necessary for their operation.

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