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Panama Increases Incentives for Building Small Hotels, Benefits Start with $250,000 Investment

Article Summary:

The Tourism Authority of Panama (ATP) has agreed to reduce from one million dollars to $250,000 the minimum amount of investment required to obtain tax incentives when building a hotel outside the district of Panama.

Photo Credit: Prensa

Original Article Text From Prensa via Google Translate:

Decrease in Tourism Investment Cap

Entrepreneurs within the authorities managed tourism activities related to accept amended bill 125 which provides incentives to activity.

After a meeting that lasted over two hours between the interior chambers of tourism and representatives of the Tourism Authority of Panama (ATP), it was agreed to lose a million dollars to $ 250,000 investment that will have to entrepreneurs to build a hotel outside the district of Panama and want to benefit from tax incentives.

According to Armando Rodriguez, president of the Association of Small Hotels of Panama (Hoppan), the administrator of the Tourism Authority of Panama (ATP), Solomon Shamah, promised to make changes when discussing the document to the Committee on Trade and Economic Affairs of the National Assembly.

“If not addressed this issue will limit the development of the activity inside,” said Rodriguez.

The draft states that by 2020 tourism projects located outside the district of Panama shall be exempt from payment of import duty by the entry of materials, fittings and equipment used in the construction and operation of the project.

Also be exempt from payment of land tax on land and improvements used for tourist activities.

The ATP also agreed to extend the deadline for businesses to get inside a tourism certification to ensure quality of service offered to visitors.

Ernesto Orillac, subaministrador of the company, explained that it was agreed that employers will have a grace period of four years, not two, as established by the original proposal to make improvements that help you get a certificate and so continue to tax benefits .

Orillac said they can not continue to be given incentives to hoteliers if there is no guarantee that the service they are receiving tourists is in line with the prices they offer.

The ATP agreed to modify the structure of the National Tourism Council to include a business representative of the interior.

Besides tax incentives, the documents defining new rules for what they called bridal and incentive tourism.

In the case of tourism bridal eliminates the requirements for medical examinations now required to submit the tourists who choose to marry in the country.

While for incentive travel provides a tax credit equal to 2% of the payment of income tax.

This credit will be applied to subsidiaries of international companies that processed and incentive trips to Panama from personnel working abroad.

It also states that Panamanian companies that offer their workers and family vacation tours for a minimum of three days outside the capital city may deduct 100% of expenditure for payment of income tax.

This deduction does not apply in case of shareholders, directors and employees of the company’s confidence.

This bill would initiate discussion at the regular sessions of the National Assembly, which begins July 1.

Link to Original Article:

From Prensa

  • http://www.bhrc.co.uk/london-eye-hotels-450l.aspx London Eye Hotels

    It is great to promise to make changes, because tourism is one of best ways to make a good income.

Latin America Investment News on Viva Tropical