Modifications made to the law regulating the SEM regime in the country, would have been the reason for reporting during last year the establishment of only seven new companies of this type.
Among the reforms to the special regime for the establishment and operation of Sedes de Empresas Multinacionales (SEM) made in 2018, it is worth highlighting that companies must have a minimum number of full-time permanent employees, and in addition, a tax rate of 5% was imposed on the net taxable income derived from the services rendered.
See “New Rules for SEM Companies in Panama”
Prensa.com reviews that “… The Ministry of Commerce and Industries (MICI) reports the establishment of only seven SEMs by the end of 2018. These are big brands and important global competitors in the construction world, medical equipment and oil services. Although in quantity, they are much less than the 20 offices arriving in 2017 and the 25 arriving in 2016.”
The article adds that “… The former Minister of Commerce and Industries, Augusto Arosemena, believes that 2019 will be a year of better achievements, precisely because it has clearer rules. Hence, so far in January, the certification of one SEM has been approved, while two others are on their way to achieving it, according to unofficial information confirmed by this newspaper.”