The Insolvency Law in Panama

Analissa Carles, Associate, Morgan & Morgan On May 19, 2016, the concept of a “Bankruptcy,” as the legal term was defined, ceased to exist under Panamanian law. Law 12 of 2016 (the “Insolvency Law”) entered into force on that date and introduced new proceedings into our legal system. These proceedings are referred to as Reorganization

New Law on tax amnesty in Panama: corporations and private interest foundations

Alvaro Tomas, partner and Vice President of Operations of the Fiduciary Unit of Morgan & Morgan The Panamanian government has issued Law 99 of October 11, 2019, which establishes a General Tax Amnesty Law (“Amnesty”) that includes the elimination, for a limited period, of the penalties and surcharges caused by non-payment of the obligations with

Panama: Regulations applicable to tax deductions from school expenses

Angélica Ortiz, Taxation Department, Morgan & Morgan Law 37 of June 5, 2018, adds line 9 to article 709 of the Fiscal Code, which is related to the annual income tax deductions to which natural persons are entitled, regarding school expenses incurred by the taxpayer with respect to their dependents. Additionally, Executive Decree 368 of

What employers need to know about labor regulations in the Republic of Panama

Introduction Panama’s Labor Code, in effect since April 1972, with some changes in the last years, regulates the relationship between capital and labor, based on the principles of social justice established in the Political Constitution of the Republic and it creates a special State protection as a benefit of the employees. The State will intervene

Belize: Intellectual Property Prohibition

Naim Musa, Managing Director, Morgan & Morgan, Belize office Pursuant to the International Business Companies (Intellectual Property Asset Prohibition) Regulations, 2019 and related legislation, companies incorporated under the International Business Companies Act of Belize (IBCs) shall not acquire, hold own or deal with any Intellectual Property Asset as follows: • IBCs incorporated on or before

The Bahamas: Economic Substance Legislation

The Bahamas: Economic Substance Legislation

Fanny Evans, associate at Morgan & Morgan The Bahamas has passed legislation requiring that certain legal entities carrying on relevant activities have to demonstrate adequate economic substance in said jurisdiction. The beneficial owners of any company or limited partnership incorporated, registered or continued in The Bahamas should be aware of this legislation and consider how

Panama: New Law on Protection of Personal Data

With the enactment of Law No. 81 on Protection of Personal Data, the Republic of Panama aims to establish the principles, rights, obligations and procedures that regulate the protection of personal data, also considering their interrelation with private life and other rights and fundamental freedoms of citizens, by natural or legal persons, public or private

Crowdfunding as a source of financing for businesses

Ricardo Arias and Roberto Vidal, partners of the Corporate Law Department of Morgan & Morgan One of the biggest challenges that micro, small and medium enterprises face when trying to settle in and achieve success as profitable businesses is to obtain capital and sources of financing. Sometimes, the most common sources of financial resources –

Transfer Pricing Update in Panama

The regulation of Transfer Pricing is one of the mechanisms through which the Directorate General of Revenue (DGI) seeks to avoid the erosion of the tax base. In Panama, it is regulated in the Fiscal Code in its Chapter IX from Article 762-A to 762-Ñ. The obligation on the issue of Transfer Pricing and specifically

Importance of the effective collection of real mortgage loan

Giselle Moncada de Vasquez, senior associate, Morgan & Morgan The loan agreement secured by mortgage is a legal and financial concept that has undoubtedly been a pillar of world economic progress. Hence, the Supreme Court of Justice of Panama in some of its judgments has given it its importance as part of the economic public