Article 9. A natural person or company may treat as fax deductible any investment it makes in the restoration, maintenance, or lighting of Historic Landmarks, municipal parks, national parks, or public site; also, any investment made in tourist promotion or education considered by the Ministry of Finance a nd Treasury in coordination with IPAT; as activities that encourage the development of tourism.
Article 10. The following tax incentive is granted to companies engaged exclusively as operators of incoming tourism in the Republic of Panama:
Exoneration, every three (3) years, from import duties on microbuses, limousines, vessels, and their spare parts, provided they are so certified by IPAT as indispensable for the proper operation of tourist services. Such equipment may be resold upon payment of the appropriate duties.
Article 11. Natural persons or companies providing mass transportation to tourists at airports, piers, and hotels are exonerated from import duties on automotive vehicles exclusively destined to tourist activities, as approved by IPAT.
Article 12. Companies engaged in restaurant, discotheque, or nightclub activities that have been certified by IPAT as beign of tourist interes, in which a minimum investment has been made, not including the cost of the land, of one hundred twenty thousand balboas (US$ 120,000.00) if located in the metropolitan area, and of a minimum of twenty thousand balboas (US$20,000.00) if located in the rest of the territory of the Republic of Panama, are exonerated for a period of three (3) years as of the date of their registration in the National Tourism Regiatry (Registro Nacional de Turismo), from import duties on the materials, equipment, and appliances used in the construction and furnishing of such establishments, provided they are not produced locally, or are not produced locally in sufficient quantity or of the proper quality, and are considered by IPAT as important for the development of such activities.
Article 13. The following benefits are granted to any company conducting activitie within the territory of the Republic of Panama for the filming of international feature films or artistic, sports, or any other type of international events to be broadcast abroad, that include spots promoting tourism in the Republic of Panama prior to, during, or at the end of such event.
Full exoneration from income tax on profits from such event, unless a tax paid in Panama is considered a tax credit in the company's country of origin.
Full exoneration from any national tax on such events.
Temporary exoneration from any import duty, contributions, tax, charge, or fee on any type or class of equipment, supplies, spare parts, or technical material brought into the Republic of Panama by communications companies for the broadcast of events to other countries; or on all the material used during the event, which shall be reexportes upon completion of the event.
Income tax exoneration to any sportsmen, or national and foreign artists participating in such events.
Article 14. All tourism publicity material is exonerated from import duties, provided it is distributed free of charge, subject to inspection by IPAT. IPAT shall have a period of fifteen (15) working days to approve or object to the material to which this article refers.
Article 15. Income derived from the following activities is exonerated from income tax:
The exploitation of vessels or aircraft of registered in foreign countries, if reciprocity is granted there to Panamanian merchant marine vessels or aircraft registered in Panama, for income derived in such countries;
The exploitation of vessels or aircraft of any nationality by foreign nationals residing in the territory of the Republic of Panama, provided the country of nationality of the natural person or company, or the country under whose laws the company is chartered, grants an equivalent exemption to companies chartered under the laws of the Republic of Panama, or to persons who have established their domicile in the Republic of Panama, by virtue of the principle of reciprocity.
Article 16. The follow ing tax incentives are granted for the construction, furnishing, building of access infraestructures, restoration, and operation of convention centers, recreational parks, zoos, tourist and ecotourism resorts, and marinas:
A three (3) years exoneration from import duties on materials and equipment used in their construction and furnishing, provided such items are not for sale, are not produced locally, and are considered by IPAT as important for the development of such activities.
A ten (10) years depreciation for real property.
A twenty (20) years exoneration from real property tax.
Article 17. At the request of IPAT, the Panama Cabinet Council may declare as Tourist Development Zones of National Interest those areas that meet the requirements as special tourist development zone, who meet the established minimum investment, shall enjoy the following tax incentives:
A twenty (20) year full exoneration from the payment of real property tax on the land or any improvements owned and being used for tourist development activities.
A fifteen (15 years full exoneration from the payment of income tax on the company's activities.
A twenty (20) years full exoneration import duties, contributions, or taxes, as well as the sales tax (ITBM tax) on the imported materials, equipment, furniture, accessories, and spare parts used to construct, renovate, and furnish their establishments, provided such items are not produced locally, or are not produced in sufficient quantity or of the proper quality. For the purposes of this Law the term "equipment" is understood to mean vehicles with a minimum capacity of 8 passengers, aircraft, helicopters, minimum capacity of 8 passengers, aircraft, helicopters, motorboats, ships, or sports supplies used exclusively for tourist activities.
A twenty (20) years exoneration from duties, contributions, taxes, or fees on the use to piers or airports built by the company. The Government of Panama may use these facilities free of charges, according to the appropriated regulations.
A twenty (20) years exoneration from the payment of income tax in interest earned by creditors from operations for investing in the tourist activity being conducted.
