Incentives Law for Recycling Industry
Monday, June 14, 2021
On June 8, Law 223 was published in Panama's Official Gazette, a legal framework that establishes environmental tax exemptions for the recycling industry; these incentives will take effect as of 2022.
The purpose of this legal framework is to promote sustainable business practices, the reconversion of companies and the development of the recycling industry in the country.

Article 4 details that "... natural and legal persons that reconvert their activity, replacing their plastic products with biodegradable materials that do not contain plastic, and are duly endorsed by the Ministry of Environment will enjoy the following benefits for a period of five years:

1. Exemption from import taxes on equipment and machinery.
2. 15% discount of the income tax."

The incentives of this Law shall not be applicable to natural or juridical persons whose replacement materials are synthetic plastic options labeled as degradable, biodegradable, oxo-biodegradable, bioplastic, bio-based, recycled or any other plastic derived from petroleum and other hydrocarbons.

Legal entities engaged in the collection of recyclable materials for export are not eligible for the exemptions either. Recycling must take place directly within the territory of the Republic of Panama, according to the text of the law. See publication in the Official Gazette.

Do you know that we are now part of something bigger?
Learn about PREDIK Data-Driven, our new global brand.
More on this topic
Incentives for Recycling Companies
April 2021
In Panama, a bill that establishes exemptions for those natural and legal persons specialized in the operation of industrial recycling plants was approved in the third debate.
The purpose of this new regulatory framework is to stimulate with environmental tax benefits the establishment of recycling companies, which do not exist in Panama, seen as an ideal process to end the problem of garbage accumulation in the country, informed the National Assembly.
Tax Incentives for the Tourism Sector
January 2020
In Panama, a bill was approved that will grant tax exemptions until 2025 to those who make investments in hotels and recreational activities.
On December 31st, President Cortizo sanctioned the bill that provides tax incentives to the tourism sector by modifying some of Law 80 of November 8th, 2012.
Guatemala: Textile Companies Urge Investment and Employment Law
March 2015
The guild is once again insisting on the urgency of the government passing the law which grants tax incentives to the maquila industry so that they can remain competitive in the global market.
Once the Investment and Employment Decree 4644 is approved, there would come into effect "... Tax incentives for the maquila industry, with terms of exemptions from income tax up to 15 years for taking up residence in the capital and 25 for those in the departments."
Nicaragua: Tax Exemptions for SMEs
December 2014
Exemption from VAT and income tax for SMEs operating under the fixed quota regime will be retained in the Tax Act Coalition whose reform is being proposed by the Executive.
There are about 200,000 small and medium enterprises (SMEs) operating under the so-called fixed quota regime, contributing 40% to gross domestic product (GDP).
Local Law Recycling
recycling plant
plastic recycling
industrial sector
Daily Update Government PurchasesDownload brochure (only in spanish)Trade Inteligence Subscriber Access NewsletterContact Us MarketDataMexico Español
2008-2022 ©
Trade InteligenceWho we areContact Us