EpiphyCorp

Several days ago, EPIPHYCORP attended the “Climatic Change and Businesses: From Copenhagen to Mexico” Seminary organized by APEDE (Corporate Executives Association of Panama); after listening to a summary of the results of the 2009 Copenhagen Agreement that looks forward to reduce the CO2 emission world-wide and getting the speakers  hopes for the next meeting on the subject, to be celebrated in Mexico at the end of this year, we left with the restlessness of not having obtained any information on “green” alternatives for doing businesses and investing in Panama.

After reviewing the available options for investment and businesses opportunities in Panama that promote the conservation of the environment, we see that due the legal frame for its development and by having a solid plan of tax incentives, LAND REFORESTATION is the best choice to undertake.

The investment and the reforestation activity in Panama has it’s legal base in Law Nº 24 of 1992, that establishes forest incentives and regulates the reforestation activity; Executive Decree Nº 89 of 1993, that regulates Law Nº 24 of 23 of November of 1992; Law Nº 1 of 1994, that reforms the Forest Law; and Executive Decree Nº 59 of 2000, that regulated the article of the General Atmosphere Law with respect to the forests.

Reforestation in Panama as a businesses option presents the following fiscal incentives:

• Exemption of income taxes, the utilities derived from the commercialization of products of forest plantations and whose establishment is realized within the 25 years from the Law of Incentives publication;
• Deduction of the 100% of the expenses for the effects of the income tax in the direct and indirect forest investments;
• Exoneration of the payment of tax of import and other rates, by the introduction to the country of all the necessary tools for the activities of reforestation, handling and advantage of forest plantations;
• Exemption of the payment of the tax of land and the tax of transference of real estate, of the property dedicated to the reforestation, in a 50% of its surface, that have a minimum of 200 hectares reforested;
• Exemption of the payment of the income tax of the utilities or gains obtained by the distribution of bonds, action and values of societies dedicated to the reforestation. These bonds, actions and values serve like banking guarantee.
• Visa granting to immigrant as investor, to the foreigner who realizes a forest investment with a minimum sum of $40,000.00 US Dollars.

By, its administrative structure, the solidity of the legal frame and the program of tax incentives, in EPIPHYCORP we support the investment in this activity, a business with great tax advantages and profitable revenues, that also contributes to the reduction of CO2, main reason of Climate Change, to the  conservation of the environment and reflects a true green option for investment