Panama offers special incentives for the establishment of “Call Centers”.
Among the benefits offered by Panama are:
- Government Commitment. A firm commitment of the Panamanian government to promote the development and setup of call centers in Panama, as for example SITEL/Cable & Wireless (Outsourcing), SPHERION (Outsourcing) and DELL Computers which are already operating in our country.
- Submarine Fiber Optics Net. The existence in Panama of a convergence of submarine fiber optics net (Maya, Panamericano, Arcos I, SAM-PAC-MAC) which creates a node that facilitates international communications from Panama.
- Education and capacitation. Panamanian government in cooperation with the private sector, has initiated a series of educational programs directed to promote and facilitate the learning of the English language among young people, in order to bring a capable work force to perform this activity.
- Infrastructure. Panama has enough installed infrastructure available to fulfill the requirement of the call center business. Beside the private offer, the government has many land and buildings left by the US Army when handing over the Panama Canal in the year 1999.
- Proximity. The proximity of Panama to the United States (a 3 hours flight Panama-Miami) vs other call centers places such as India or Singapore, is an advantage that allowed the opportunity of keeping a better control, over the operations abroad. We also have the same time zone as New York and Miami.
- Security. Panama offers a secure environment that minimizes the risk of keeping all the operations and infrastructure in only one place, especially after September 11. Additionally, the existence of a stability of investment regime that guarantees for at least ten (10) years, the current legal environment to a company.
- Use of the dollar. Panama is an international banking center and a country whose economy is based on services; where there are more than 100 banks from all around the world and an economy where the US dollar has been used as currency since 1903. These features create a better environment for this kind of business.
- Free Market. Panama offers reasonable prices for goods and services if compared it with closer neighbors; besides the fact that Panama has already signed Free Trade Agreements with Taiwan and el Salvador and it is currently a strong candidate for the permanent headquarters for the FTAA (Free Trade Area of the Americas) in the year 2005.
- Tax Treatment. Law No. 54 of October 2001, exempts all call center companies in Panama of paying the US$1.00 stamp tax for each international call as stated originally by Law No. 88 of 1961.
- Special Incentives: Finally, in the tenth place and being Panama a country that applies the concept of territorial income for tax purposes, the income generated by a call center for its international operations are not subject to income tax. According with last Tax Reform (Law 8, March 15, 102019 the call centers pay income tax on domestic operations.
Call Centers may benefit from the incentives granted by Law No. 25 of 1992 including: income tax exemption (abroad operations), import tax exemption on the goods and equipment required for its operation.