Law 52 of October 17, 2018, which regulates call centers activities for commercial use amends the tax incentives received by these companies.

The legislation provides that in order to make use of the tax incentives, the company must have a concession to provide the service, for which it must be registered with the National Public Services Authority. Once the application is approved, call centers will be exempt from direct and indirect taxes, contributions, fees, duties and the like except for:

  • 2% of complementary tax.
  • Operation Notice Tax: 0.5% per year will be paid with a minimum of USD$100.00 up to a maximum of USD$50,000.00.
  • Real estate transfer tax.
  • Property tax.
  • Special interest compensation fund, except loans secured with bank deposits (FECI).
  • Employer and worker contributions and social security benefits established by the social security.

It is also established that transactions with related parties will still be subject to the transfer pricing regime. This rule applies to related parties abroad, as well as related parties established in Panama.

The new regulations do not apply to call centers registered in the Panama-Pacific area, which will be regulated exclusively by Law 41 of 2004.

Finally, the law contemplates special immigration categories for investors in this activity, in addition to granting certain concessions regarding the labor management of workers.

To learn more about the legal regime of the activities and incentives of call centers for commercial use or call centers, please do not hesitate to contact us.

About Dentons

Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.