Business Reforms in Panama
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Resolving Insolvency: Panama made resolving insolvency easier by adopting a new insolvency law that introduces a reorganization procedure and facilitates continuation of the debtor’s business during insolvency proceedings. The new law also allows creditors greater participation in important decisions during insolvency proceedings and regulates insolvency practitioners.
Getting Credit: Panama improved access to credit through a new law broadening the range of assets that can be used as collateral, allowing a general description of assets granted as collateral and allowing out-of-court enforcement of collateral.
Starting a Business: Panama made starting a business easier by eliminating the need to visit the municipality to obtain the municipal taxpayer number.
Registering Property: Panama made transferring property easier by connecting the land registry with the cadastre.
Protecting Minority Investors: Panama strengthened investor protections by increasing the disclosure requirements for publicly held companies.
Paying Taxes: Panama made paying taxes easier for companies by changing the payment frequency for corporate income taxes from monthly to quarterly and by implementing a new online platform for filing the social security payroll.
Dealing with Construction Permits: Panama made dealing with construction permits easier by reducing the fees for a permit from the fire department’s safety office and by accelerating the process at the building registry for obtaining a certificate of good standing and for registering the new building.
Registering Property: Panama made property transfers faster by increasing working hours at the registry and reorganizing the caseload of its staff.
Paying Taxes: Panama made paying taxes easier for companies by enhancing the electronic filing system for value added tax and simplifying tax return forms for corporate income tax—though it also began requiring companies to pay corporate income tax monthly rather than quarterly.
Starting a Business: Panama extended the operating hours of the public registry, reducing the time required to register a new company.
Starting a Business: Panama eased business start-up by increasing efficiency at the registrar.
Registering Property: Panama made it more expensive to transfer property by requiring that an amount equal to 3% of the property value be paid upon registration.
Paying Taxes: Panama reduced the corporate income tax rate, modified various taxes and created a new tax court of appeals.
Dealing with Construction Permits: Panama made dealing with construction permits easier by eliminating some procedures and simplifying others.
Registering Property: Panama reduced the time required to transfer property by making it possible to obtain the certificate of good standing from the tax agency online.
Starting a Business: Panama made business start-up faster by introducing an online system that greatly reduced the time required to obtain a business license.
Paying Taxes: Panama made paying taxes easier for companies by introducing and enhancing electronic tax filing systems.