A new bill, agreed between the government and the private sector, expands tax incentives granted to companies in the sector through the Certificate of Industrial Promotion.

The text was drafted after the government and the private sector reached consensus on how to define tax incentives to which companies in the sector are entitled to. The project will be submitted to the Cabinet this month and will be discussed in the current legislative period.

Prensa.com reports that “… it was agreed to increase the CFI  from 25% to 40%, in order to specifically support investment into research and development, personnel training, investment and reinvestment, environmental management and increased employment associated with increased production. The intention is that the IFC be issued within 90 days instead of the average timespan of two years, as it is at present.“

“… Melissa Miranda, executive director of the Union of Industrialists of Panama believes that the IFC, which is deductible from income tax, is “a tool attractive enough to promote investment in the industrial sector.”