The Multinational Company Headquarters (SEM) regime was created in 2007 to attract multinational business groups to establish their regional or global operations center in Panama. A SEM is an office with management control in the region that provides services to its parent company, subsidiaries, or affiliates in other countries. From Panama, companies can coordinate operations for all of Latin America with unique tax, immigration, and labor benefits.
Benefits
Tax Benefits
Income Tax
5%Reduced rate on net taxable income from services provided.
Dividend Exemption
0%Exemption from dividend tax, complementary tax, and branch tax.
VAT
0%Export services to group entities abroad do not trigger VAT.
Immigration Benefits
SEM Visa
Permanent SEM staff visa for the expatriate and dependents (up to 5 years, renewable).
Dependents Included
Spouse, minor children or under 25 if students, and parents of SEM staff.
Social Security Exemption
Exemption from mandatory Social Security enrollment while not applying for permanent residency.
Expat Benefits
Personal Income Tax Exemption
0%Income tax exemption (applies only to the company, not the employee).
Household Goods
0%Import duty exemption for household goods when first moving to Panama.
Personal Vehicle
0% / 2 añosImport tax exemption for one personal vehicle every 2 years.
Requirements
Business Group Requirements
- Total assets equal to or greater than USD 200 million, OR
- Provide services to at least 7 subsidiaries of the group in different countries
Eligible Services
- Regional/global direction and coordination
- Treasury and finance services
- Accounting and financial consolidation
- Strategic planning
- Human resources services
- Technical and logistics advisory
- IT and telecommunications services
Application Process
Application
Submit application to the MICI SEM Technical Secretariat with business group documentation.
Evaluation
The Technical Secretariat evaluates compliance with all established requirements.
Multidisciplinary Commission
Presentation to commission comprising MINREX, DGI, MICI, and Immigration.
Approval and License
Granting of SEM License and registration in the system.
Legal Disclaimer
The information provided is for guidance only and does not constitute legal or tax advice. Consult with legal and tax advisors for your specific case. Rates and requirements may change.
Official Source
Apply NowLegal Basis
Ley 41 de 24 de agosto de 2007
2007-08-24
Cited Articles
Eligible Services
Business Group Requirements
Income Tax
VAT
Dependents Included
SEM Visa
Household Goods
Social Security Exemption