Panama increases incentives for solar energy

Arias Law - Law 417 of December 27, 2023, published on the eve of the end of the year, modifies a provision of Law 37 of 2013 that establishes the incentive regime for the promotion of the construction, operation and maintenance of solar power plants and/or installations. 

The new regulation establishes as incentives, not only for builders, operators and installers of solar power plants, but for all natural or legal persons, without limit of quantity, the exemption of the selective consumption tax, import tax, tariffs, fees, contributions and levies, as well as the tax on the transfer of tangible personal property and the provision of services, which may be caused by reason of the import and/or purchase in the domestic market of equipment, machinery, materials, spare parts and others that are necessary for the construction, operation and maintenance of solar power plants and/or installations. 

Likewise, it benefits those plants and/or solar installations that are in the construction stage, which will have a term to request the recognition of the exoneration granted. 

Law 417 will enter into force the following fiscal year 2024.

Authors:
Siaska SSS Lorenzo - Managing Partner
Issa Rodríguez - Associate
AriasLaw.com

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