Panama enacts regulations and tax credits for solar energy production

Panama has currently a number of regulations in force in order to offer tax incentives 

for the construction, operation and maintenance of solar power stations or installations.   The main one is Ley 37 of 2013, which sets out the tax incentive guidelines which aim to promote the construction, management, and maintenance of solar energy systems in Panama.  The tax incentives include:

• A tax exemption on customs duties on equipment, machinery, and other materials necessary to construct and maintain solar panel systems
• An income tax credit of up to 5% of the total direct investment in a solar panel system, as well as works on the plants and/or facilities that are converted into public use infrastructure (roads, ways, bridges, schools, health centers and others of similar nature)
• Accelerated depreciation for the equipment used to generate solar power

Equipment, parts and systems which are exempt from customs duties are:

1. Solar water heaters or heat producing equipment;

2. Parts and components necessary to assemble the solar collectors to heat water and/or solar drying equipment;

3. Solar panels and individual solar cells;

4. Long-term stationary accumulators

5. Inverters and/or solar inverters; and

6. Other accessories, equipment, software and items which are destined to the use and/or development of solar energy.

The Authority of Public Services (ASEP) of Panama has issued an April 2014 regulation for public procurement of solar energy generation. The "Rules for energy trading through acts of exclusive competition for solar generation plants", set the parameters for future tenders for photovoltaic projects.

The regulation provides that tenders approved solar projects are coordinated by the state-owned enterprise Empresa de Transmision Eléctrica (Etesa) which also sets a reference price. During the tender process, will be awarded projects at prices at or below the reference price . Another regulation was issued for contracts for sale of electricity within closed contests subject to a maximum term of 20 years. The regulation also requires that the tender documentation include clauses to discourage and punish corrupt practices and fraud.

The text of the regulations were subject to public consultation by the Autoridad de Servicios Publicos (ASEP) regulator over recent months. In the query, Asep received comments from about five companies. Late last year, Asep also submitted to public consultation a technical regulation for connecting photovoltaic installations and a Code of Photovoltaic Networks.

At present, there are a number of solar projects planned in the country. In the last year ASEP has granted temporary or permanent license to about a dozen solar projects with a combined capacity of 200 megawatts. The largest solar plant in the country, Central Sarigua, was opened earlier this year with 2.4 megawatts of power.

Panama Visas for Entry

Immigration and Visas

As of July 21, 2009 there is in effect a new Law regarding tourist visas for entering the Republic of Panama.
Executive Decree #248 states that: 

"Those who hold a valid passport for at least 3 months and a valid visa from ONE of the following countries: USA, United Kingdom, Canada, Australia or any of the member countries of the European Union, which has been used at least one time to enter those countries, may enter the Republic of Panama by purchasing a Tourist Card, regardless of their nationality."

*Immigration officials are accepting as valid the entrance of the holders of a United States permanent resident card under this law. 
*The tourist card is purchased upon arrival at the Panamanian airport and it has a cost of US$30.00.
*The tourist card is valid for 30 days, renewable at the Office of Migration for an extra period of 60 days.
*For further information of the law decree please click here.

Please refer to the following country list to find out what type of visa you require to travel to Panama: Types of visas & countries to which they apply. Alternatively, click here for a quick search on your country’s specific requirements for travel to Panama.

Authorized Visas

Please be advised: for authorized visas, the approval process may take up to 60 working days, depending on the verification of your documents. Do not finalize your travel arrangements until your visa has been granted.Once your application has been processed, to check on the status of an authorized visa request, go to http://www.migracion.gob.pa/eng/consultadas.php

Requirements:

• Fill out Application Form in print or typewritten.
• If applying by mail, you may include your original passport, which must be valid for at least 3 months. Alternatively, you can initially send us photocopies of your passport (first and second page, and make sure there are blank pages available for the Panamanian visa to be stamped) and we will notify you when your visa is granted for you to send in your passport.
• Copy of previous visas or permits approved by Panamanian migration authorities
• 3 Photographs (size: 2x2, with white background)
• Copy of resident card, personal identification document from country of origin or US Permanent Resident card or US Visa, if applicable.
• Flight reservation with itinerary of trip continuation or electronic ticket.
• Hotel reservation (if applicable)
• Proof of economic solvency during stay, depending on trip duration and no less than USD$500.00 per month. This can be verified with any and all of the following:
- Certified bank checks with applicant's name.
- Travelers check with applicant's name.
- Applicant bank statements from previous three months.
- Applicant credit card with statements from previous three months.
- Tax returns from previous fiscal year.
- Any other reasonable proof of income accepted by the National Service for Migration.
• Work requirements:
- If applicant works for a public or private entity: work letter with receipt of last paycheck.
- If applicant is retired or receiving pension: document that indicates pension along with receipt.
- If applicant is a student (at least 18 years old): certification from academic entity indicating field of study and academic period.
- If applicant is economically dependent: declaration or notarized document from family member in which the person states that he or she is responsible for the applicant's expenses during the trip.
• Declaration or notarized document from person that is inviting (if applicable). Can be made by any of the Following:
a) Permanent or temporary Panamanian residents declaring from Panama. In this case this person needs to include the following:
i) Valid copy of cedula.
ii) If person is a foreigner, copy of general information from passport and temporary or permanent resident card or cedula.
iii)Copy of receipt from previous utilities bill that includes resident's address.
b) If person responsible is a public or private entity:
i) Letter of responsibility front entity's legal representative (If a University from Dean or equivalent)
ii) If person responsible is a private entity, it must include:
- Certificate from Public Registry.
- Copy of operation key from Colon Free Zone (if applicable).
- Certification of existence of University, education center, or City of Knowledge (if applicable).
- Copy of receipt from previous utilities bill that includes entity's address.
c) In case of point (ii) whoever is inviting and assuming responsibility must prove economic solvency with one of the following documents:
- Bank certification valid for at least three (3) months.
- Work letter and Social Security Number.
- If covering applicant's expenses, must present a declaration or notarized document in which they assume the responsibility.
• If the application is for a person under 18 years of age, it must be submitted by one of the parents or whoever has custody and this person must include the following:
- Birth certificate authenticated by Panamanian Consul and by the Foreign Relations Ministry if applied from Panama and for visas approved directly by the National Service for Migration.
- Authorization by one of the parents for leaving the country if the minor is not traveling with both parents or person that has custody, detailing length of stay, person responsible in Panama and their address, phone number and source for covering minor's expenses.
• Certified check or money order for US$135.00 made out to The Consulate of Panama.
• Self-addressed prepaid envelope for return of documents.

Visa Exemption

If you are a citizen from a country on the following list (see Types of visas & countries to which they apply) you do not require a visa to travel to Panama. However, make sure you are traveling with your original passport, and that it is valid for at least 3 months.
• If you are traveling by land, private boat or plane, we recommend that you obtain a stamped visa in your passport to avoid any inconveniences.

Stamped Visas

If you are a permanent resident of the United States but have a passport from another country (see Types of visas & countries to which they apply) you may require a stamped visa to travel to Panama. Without a permanent residence card, the requirements will be the same as the authorized visa. The stamped Visa takes approximately 2 to 3 working days to be processed by the Consular Office.

Requirements:

• Fill out Application Form in print or typewritten.
• Original passport, valid for at least 3 months.
• 3 Photographs (size: 2x2, with white background)
• Copy of resident card, personal identification document from country of origin or US Permanent Resident card or US Visa, if applicable.
• Flight reservation with itinerary of trip continuation or electronic ticket.
• Hotel reservation (if applicable)
• Proof of economic solvency during stay, depending on trip duration and no less than USD$500.00 per month. This can be verified with any and all of the following:
- Certified bank checks with applicant's name.
- Travelers check with applicant's name.
- Applicant bank statements from previous three months.
- Applicant credit card with statements from previous three months.
- Tax returns from previous fiscal year.
- Any other reasonable proof of income accepted by the National Service for Migration.
• Work requirements:
- If applicant works for a public or private entity: work letter with receipt of last paycheck.
- If applicant is retired or receiving pension: document that indicates pension along with receipt.
- If applicant is a student (at least 18 years old): certification from academic entity indicating field of study and academic period.
- If applicant is economically dependent: declaration or notarized document from family member in which the person states that he or she is responsible for the applicant's expenses during the trip.
• Declaration or notarized document from person that is inviting (if applicable). Can be made by any of the Following:
a) Permanent or temporary Panamanian residents declaring from Panama. In this case this person needs to include the following:
i) Valid copy of cedula.
ii) If person is a foreigner, copy of general information from passport and temporary or permanent resident card or cedula.
iii)Copy of receipt from previous utilities bill that includes resident's address.
b) If person responsible is a public or private entity:
i) Letter of responsibility front entity's legal representative (If a University from Dean or equivalent)
ii) If person responsible is a private entity, it must include:
- Certificate from Public Registry.
- Copy of operation key from Colon Free Zone (if applicable).
- Certification of existence of University, education center, or City of Knowledge (if applicable).
- Copy of receipt from previous utilities bill that includes entity's address.
c) In case of point (ii) whoever is inviting and assuming responsibility must prove economic solvency with one of the following documents:
- Bank certification valid for at least three (3) months.
- Work letter and Social Security Number.
- If covering applicant's expenses, must present a declaration or notarized document in which they assume the responsibility.
• If the application is for a person under 18 years of age, it must be submitted by one of the parents or whoever has custody and this person must include the following:
- Birth certificate authenticated by Panamanian Consul and by the Foreign Relations Ministry if applied from Panama and for visas approved directly by the National Service for Migration.
- Authorization by one of the parents for leaving the country if the minor is not traveling with both parents or person that has custody, detailing length of stay, person responsible in Panama and their address, phone number and source for covering minor's expenses.
• Certified check or money order for US$135.00 made out to The Consulate of Panama.
• Self-addressed prepaid envelope for return of documents.
Note: The Consul General has the right to ask for additional information or documents and request a personal interview with the applicant.

Stamped Visa/Tourist Card

If you are a citizen of the United States or of a country on the corresponding list (see Types of visas & countries to which they apply) you may request a stamped visa in your passport from the Consular Office, for a US$135 fee. This is a multiple entry visa valid for 5 years, with each entry allowing stay of up to 90 days. Or you may simply purchase a US$30 tourist card upon your arrival at the Tocumen International Airport in Panama, which is valid for a single entry of 90 days. If you request a stamped visa, please:

• Fill out Application Form in print or typewritten.
• Present your original passport, valid for at least 3 months.
• If you are traveling by land, private boat or plane, we recommend that you obtain a stamped visa in your passport to avoid any inconveniences. 

Source: Embassy of Panama, Washington, DC