FREE ZONE
The areas of the the World Jewelry Hub are exempt from the regulations and taxation normally imposed on business in Panama. According to legislation approved by the Panamanian parliament for the exclusive benefit of the diamond, gemstone and jewelry sectors, the complex is a bonded area, where foreign merchandise is brought in without import duties, for further processing or re-exporting.
Import duty is only paid on merchandise if it is released in the local market. Goods that are imported into the complex and are traded and exported without entering the local market are exempt from all duties.
Companies establishing businesses in the free zone are largely exempt from paying taxes, meaning all profits earned from re-exportation are free of tax. Only profits on sales in the Republic of Panama are subject to tax.
There are also tax exemption on every activity involving transfer of personal property, real property, purchase of construction equipment and materials, raw materials, machinery, tools, accessories, inputs and every good or service required for its operations, carried out by companies established in the free zone