By Law 8 of 2016, the Colon Free Zone is reorganized; this zone is an autonomous state institution whose main objective is to exercise private custody, exploitation, and administration of the areas of Free International Trade, as well as the real estate located in these areas, in order to achieve greater investment to benefit the Republic of Panama.
The law which governs the Colon Free Zone had not been modified since its inception 68 years ago, and now aims to boost the commercial, economic and touristic life of the Atlantic area, with additional benefits such as the taxes to be applied to businesses. In addition, with the new reform, a one-stop window has been created in order to receive and process immigration visas, work permits, as well as administrative and tax petitions, with the finality that the process becomes more agile, efficient and expeditious.
The Panamanian Government hopes that the restructuring will revitalize the economy of the province of Colon.
The Free Zone is exempt to pay any kind of taxes, including contribution tax rate, and also any gravamen or even national duty imposed, except for tax transfers of tangible goods and services.