# EMMA

> The EMMA regime (Law 159 of 2020) allows manufacturing multinationals to establish in Panama with 0% income tax for the first 5 years (then 5%), equipment import exemption, 10 years of legal stability, and special visas.

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The EMMA regime was created by Law 159 of August 31, 2020 to promote foreign direct investment in manufacturing, job creation, and knowledge and technology transfer to Panamanians. EMMA companies can perform manufacturing, assembly, re-manufacturing, research and development operations, as well as logistics activities for storage and distribution of components.

## Benefits

### Tax Benefits

- **Income Tax First 5 Years** (0%) — Complete Income Tax exemption during the first 5 years of operation.
- **Income Tax After 5 Years** (5%) — Reduced 5% rate on net taxable income from the sixth year onwards.
- **Dividend Exemption** (0%) — Exemption from dividend tax, complementary tax, and branch tax.
- **Capital Gains** (2%) — Reduced 2% rate on share transfers (vs. ordinary 10%).
- **Equipment Import** (0%) — Exemption from all import taxes, fees, or duties on machinery, equipment, raw materials, and supplies.
### Immigration Benefits

- **EMMA Executive Visa** — 5-year renewable visa for executives and permanent staff.
- **EMMA Technician Visa** — 3-year visa for specialized technical staff.
- **Temporary Staff Visa** — 2-year renewable visa for operational or training staff.
### Legal Stability

- **10-Year Guarantee** — From license granting, tax, labor, immigration, and legal benefits are guaranteed for 10 years.

_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._