EMBASSY OF PANAMA IN JAPAN

Incentives for participation in the City of Knowledge project are set forth by Decree Law No. 6, which establishes the basis for the support that the Panamanian State provides to this project. These incentives are granted to the companies, institutions and academic programs or universities that are affiliated to the City of Knowledge's technopark, academic area or international organizations area. Detailed information can be found at the City of Knowledge’s official web-site.

Below are the incentives granted by the Republic of Panama, and also granted by the City of Knowledge:

Import Tax. Exemption of all taxes, contributions, duties or importation rights on all machinery, equipment, furniture, vehicles, devices, and consumables necessary for the projects development.
Sales Tax. Exemption of the Movable Property Transfer Tax, a sales tax on machinery, equipment, vehicles, devices and consumables which are acquired and are necessary for the projects development.
Money Transfers. Exemption of any tax, fees, duty, or lien imposed on the remittance of money abroad when such transfer of funds is carried out for the purpose of the project.
Income Tax. Innovative businesses within the TIP, which produce, assemble, process, or render services for high tech products destined for sale in the local or international market, are entitled to the following additional benefits:

a.) Their activities, operations, transactions, procedures, and the transfer of personal property or assets, the purchase and importation of equipment or construction material, prime materials, machinery, tools, accessories, and consumables will be one hundred percent free of direct taxes, contributions, appraisals, duties and encumbrances. Also included are exonerations from tax on net income on business activities (that is, income tax exemption).
b.) Capital will be exempt from national direct tax, including taxes on patents or licensing.

Labor Incentives
The institutions affiliated to the City of Knowledge are allowed to contract as many international personnel as necessary.