Your Monthly Legal Newsletter - April 2020, Issue no. 2
A message from Lex Innova Law Office
Given the spread of the novel coronavirus (COVID-19) and its declaration by the World Health Organisation (WHO) as a public health emergency, Lex Innova Law Office has taken actions to ensure the safety, health and well-being of our people, clients, guests, suppliers and contractors.
We are closely following the recommendations of the local and international health authorities - including those of the surrounding countries - and we're communicating on a regular basis with our team.
Concretely, we have put in place the following steps:
Establishing a dedicated team to monitor the situation daily and to ensure business continuity.
Discouraging, for the time being, unnecessary travel for private or professional reasons.
As from Monday 16 March, maximizing the use of Home Based Working.
One thing is for sure, we at Lex Innova remain in business as usual and we are taking this opportunity to discover how to get the best out of our work time.
Our message for you is: Please stay safe!
Panama introduces a Beneficial Owner´s Register
Panama has finally approved the creation of a Beneficial Owner's Register by means of Law No. 129 of March 2020 and which came into effect as of the 20th day of March 2020.
In summary, the new Law requires for any Panamanian lawyer or Law Firm who acts as Resident Agent for any Panamanian active entity to identify the beneficial owner(s) (“UBO”) in an entity through the application of AML measures; and to report details of such UBO through a confidential and secured Beneficial Owner's System to be created and kept by the Superintendence of Non-Financial Institutions of the Republic of Panama.
What information shall be required to be reported by the Resident Agent?
The following information is reportable in relation to the UBO:
a) Full name; b) ID number, such as passport or any other personal identification number; c) Date of birth; d) Nationality; e) Address; and f) Date on which the natural person became a UBO of the legal entity.
When reporting shall be made?
For any new Panama entity, the Resident Agent must report UBO information within 30 days followed to the incorporation´s date. For any existing Panama entity, the Resident Agent shall have a 6 months’ period to submit the UBO information into the Beneficial Owner´s System.
Any change or variation in the UBO details are also required to be reported within 30 days’ period followed to the date in which such change occurred.
Moreover, any Panama active entity whose Resident Agent is not duly registered with the Superintendence of Non-Financial Institutions for reporting purposes, will be suspended at the Panama Public Registry with all effects that such suspension involves. i.e. the restriction to do filings with the Panama Public Registry, up to produce dissolution or winding-up procedures if suspension is not satisfactory released within permitted time in the Law.
Being the above said, there may be significant consequences if either the Resident Agent or a Panama active company does not comply with this Law.
Should you require any advice on this topic or need for our services in order to keep your Panamanian entity in Good Standing, please feel free to contact us.
Panama extends tax amnesty up to June 2020
The Republic of Panama has approved an extension to the Tax Amnesty period which was originally adopted through Law 99 of 2019 which expired on the 29th February 2020. This extension was approved through Law 134 of March 2020 and will grant to the taxpayers a 85% discount on interests, penalties and fines up to June 2020.
Should you need to restore your Panama company or Panama foundation and bring them up back into Good Standing at a reduced cost, please contact us!
General labor guideline for businesses in Panama amid COVID-19 crisis.
To flatten the curve of the CoVID-19 outbreak, the Republic of Panama, throughout these weeks, has adopted different regulations, rules and policies that have the uttermost purpose of establishing measures to reduce, mitigate and control the spread of the Pandemic due to Coronavirus disease (CoVID-19).
From its end, the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) has prepared and shared a general labor guide (in Spanish language) based on the regulations issued by the Authorities until March 25, 2020.
For your quick reference, please find below the link to access the guide:
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