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Colón Free Trade Zone
The Colón Free Trade Zone is a free port in Panama dedicated to re-exporting a wide variety of merchandise to Latin America and the Caribbean. It is located on the Caribbean coast, near the Atlantic entrance to the Panama Canal, in the province of Colón, within the city of Colón though outside its municipal jurisdiction and operates as an autonomous entity of Panama.
The Colón Free Trade Zone is the largest free port in the Americas, and second largest in the world. It started operations in 1948 and occupies about 2.4 km2 (600 acres). It is divided in two large areas: one located in Colón, segregated from the city by a wall, and the other relatively new, in the harbor area, which is designated for warehouses, covering 0.53 km2 (130 acres) and 370 m (400 yards) from Colón's commercial sector.
Exports from the free trade zone into neighboring countries are still subject to local rules, regulations, and payment requirements of the importing country.[citation needed] Venezuela, one of the larger buyers from the zone, has had difficulty meeting its obligations to exporters from the zone resulting in unpaid debts. Colombia implemented a series of tariffs which had the effect of reducing imports, primarily from Asia.
The Zone was created by Decree Law No. 18 of 17 June 1948, as an autonomous entity to develop the country's competitive advantages. Recently, the legislation for the Zone was modernized by Decree Law No. 8 of 4 April 2016, to allow for new businesses, such as electronic commerce, construction and operation of ports and other commercial activities.
Profits from foreign operations are totally exempt from income tax.
Dividends that come from external operations or those carried out abroad are subject to dividend tax of 5%, as established by law 8 of 2010:
Companies domiciled in the Colon Free Zone are subject to pay 1% per year on the value of their net worth at the end of their fiscal period, as an Operation Notice tax. A tax that for entrepreneurs in the Colon Free Zone due to the current situation is the cause of the closure of multiple companies this year 2016.
In 1917, three years after the opening of the Panama Canal, the possibility of building a free zone in the area in Colón was discussed. The Colon Chamber of Commerce raised the project of a free zone in 1929, and the project was taken into account in 1948, following the Second World War.
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Colón Free Trade Zone
The Colón Free Trade Zone is a free port in Panama dedicated to re-exporting a wide variety of merchandise to Latin America and the Caribbean. It is located on the Caribbean coast, near the Atlantic entrance to the Panama Canal, in the province of Colón, within the city of Colón though outside its municipal jurisdiction and operates as an autonomous entity of Panama.
The Colón Free Trade Zone is the largest free port in the Americas, and second largest in the world. It started operations in 1948 and occupies about 2.4 km2 (600 acres). It is divided in two large areas: one located in Colón, segregated from the city by a wall, and the other relatively new, in the harbor area, which is designated for warehouses, covering 0.53 km2 (130 acres) and 370 m (400 yards) from Colón's commercial sector.
Exports from the free trade zone into neighboring countries are still subject to local rules, regulations, and payment requirements of the importing country.[citation needed] Venezuela, one of the larger buyers from the zone, has had difficulty meeting its obligations to exporters from the zone resulting in unpaid debts. Colombia implemented a series of tariffs which had the effect of reducing imports, primarily from Asia.
The Zone was created by Decree Law No. 18 of 17 June 1948, as an autonomous entity to develop the country's competitive advantages. Recently, the legislation for the Zone was modernized by Decree Law No. 8 of 4 April 2016, to allow for new businesses, such as electronic commerce, construction and operation of ports and other commercial activities.
Profits from foreign operations are totally exempt from income tax.
Dividends that come from external operations or those carried out abroad are subject to dividend tax of 5%, as established by law 8 of 2010:
Companies domiciled in the Colon Free Zone are subject to pay 1% per year on the value of their net worth at the end of their fiscal period, as an Operation Notice tax. A tax that for entrepreneurs in the Colon Free Zone due to the current situation is the cause of the closure of multiple companies this year 2016.
In 1917, three years after the opening of the Panama Canal, the possibility of building a free zone in the area in Colón was discussed. The Colon Chamber of Commerce raised the project of a free zone in 1929, and the project was taken into account in 1948, following the Second World War.