I attended recently a most interesting fundraiser in San Diego for Freedom Fuel Foundation – for more information, please visit: www.fuelfreedom.org It contains plenty of information.
Monday, November 19, 2012
Saturday, October 20, 2012
“Due Diligence for Transactions in Offshore Jurisdictions
We provide peace of mind!™
“Due Diligence for Transactions in Offshore Jurisdictions”
PRESENTED BY
JULIETTE PASSER, ESQ., PRESIDENT AND GENERAL COUNSEL,
PANAMANAGEMENT CORPORATION
for
STEP USA (SOCIETY OF TRUST AND ESTATE PRACTITIONERS)
Thursday, October 18, 2012
Introduction.
Today, global transactions present unique challenges for businesses seeking to obtain and analyze diligence information. Some of these challenges are as basic as language and cultural differences, while others are far more complex and require focused and creative inquiries, involving decentralized computer systems and document retention policies, different accounting systems, and regulatory frameworks regarding foreign investment in or ownership of domestic entities, bearer shares and nominee directors corporate entities, possessory and property rights and title registrations. Cross-border transactions also implicate potential Foreign Corrupt Practices Act and OECD Convention liabilities and the courts and legal systems of foreign jurisdictions. Careful due diligence regarding the enforceability of deal terms is essential to ensuring that each party is getting what it expects out of the deal. Legal counsel with experience in these transactions can help clients navigate through all of the traps that may be encountered by the unwary.
The Chart below, showing all the counties in red, represents the territory of heighted due diligence, because it covers the developing and emerging markets, plus a few of our allies in Europe and require careful analyses of each transaction.
Presentation Summary
Effective due diligence assures that a transaction achieves its anticipated benefits. It must identify (i) deal breakers, (ii) key risks and (iii) operational issues.
Due diligence process is always transaction-specific: there is no such thing as standard due diligence process – it must identify and allow for mitigation of risks in each specific case.
In the developing and emerging markets, due diligence is particularly important – asking the right questions is not enough as you may receive inadequate information.
Lastly, the nature of the transaction, an equity purchase of shares or the purchase of assets only, will impact how liabilities are apportioned under local law, which may differ from a standard Western model.
Key factors:
Cultural barriers;
Language barriers;
Political and market uncertainty;
Different legal, financial and accounting systems;
Less developed governmental institutions;
Opaque regulatory practices;
Uncertain labor laws or burdensome pro-labor regulations;
Corrupt and inefficient local courts.
Recommendations:
1. Retain local counsel - preferably one affiliated with a major US law firm and visit your foreign jurisdiction.
2. Review formation and ownership of the local entity – establish identity of beneficial owners; type of shares (verification of ownership represented by bearer shares needs particular attention); voting rights agreements; shareholders agreements (in many developing jurisdictions shareholders agreements will not be executed and are not common); authority of people you are dealing with to represent the entity, provide information and to enter into the transaction.
3. Personal information and reputations of key players, directors and owners – in many jurisdictions, directors and officers are nominees who do not participate at all in the management of the entity; original executed resignations may be needed for each nominee to transfer ownership of the entity, identity of beneficial owners must be disclosed.
4. Financial and accounting matters – many companies keep two or ever three sets of books, some are for legitimate reasons, some are not so; make sure to compare all sets and convert to GAAP or IFRS, as feasible.
5. Foreign Corrupt Practices Act (FCPA) for U.S. companies - is one of the top priorities for due diligence; ask for compliance with FCPA in writing, whenever possible; review any unusual payment patterns, high commissions, underfunded business partners and vague accounting entries, such as ”entertainment.” Consider applicability of the OECD Convention on Combating Bribery of Foreign Pubic Officials,
6. Labor and employment matters – review local laws regarding severance pay, notices for firing for cause and without cause and other required payments under local Labor Codes; in many developing counties employment contracts may be implied and written contracts may be disregarded; employees may be entitled to as many as 14 months of compensation in one calendar year – be careful about budgeting for downsizing and firing of employees.
7. Environmental laws – review tort and criminal liability under the local laws; permitting may involve lengthy bureaucratic procedures; variable enforcement may be common; different standards for local companies and multinationals may be prevalent.
8. Real Estate issues – ownership of real estate; title to land; possessory rights will affect vesting and titling; ownership must be researched and verified for many years back; building codes and certificates of occupancy rules may vary widely from the US.
9. Intellectual Property (IP) – local protection and rights of ownership of IP; third party licensing issues, ownership of innovations – is it a licensor (as in the US ) or the licensee (in other jurisdictions) who owns rights to innovations to your IP?
10. Political risks – consider non-commercial risks; availability of political risk insurance and its impact on the cost of doing business in each jurisdiction.
11. Local Courts or Arbitration – we always opt for arbitration in a neutral forum with established arbitration procedures based on UNCITRAL model rules; local Courts may be ineffective and corrupt or outright hostile to foreign investors.
12. Indemnification provisions – best due diligence practice allows to discover hidden issues during the negotiations stage and thus provide for price adjustment and proper indemnification negotiated before the deal is closed; failed due diligence may lead to expensive and extensive litigation.
13. List f hidden issues to bear in mind:
a. Current and pending legislation;
b. Environmental non-compliance;
c. Corrupt practices;
d. Poor accounting and controls;
e. Poor maintenance and aging equipment and assets;
f. Product quality controls;
g. Product safely problems;
h. Disgruntled employees;
i. Disgruntled investors;
j. Disgruntled customers;
k. Technology and IP problems;
Conclusion
All in all, due diligence should be a cooperative process to the extent possible rather than a confrontational one. So, build a competent local team and be creative in pealing the proverbial onion of potential problematic issues.
By Juliette Passer, Esq. 2012
About Us
Our company provides legal and financial consulting to both US and foreign clients involved in many industries. Through our office in Panama City, we provide services to both individual and institutional investors interested in projects located in Panama Republic, including real estate transactions, wealth preservation and asset protection, international trade, equipment leasing, international licensing, trademark registration, sales and purchases of businesses, management of administrative and subsidiary offices registered in Panama and choices of passive investment vehicles. The clients of PanaManagement receive personalized and effective representation based on combination of major firms experience and quality at highly competitive rates. As a consulting company with an integrated in-house legal department, we have the capabilities to handle your projects from the inception to completion.
“The purpose of establishing an office in Panama is two-fold: first, to facilitate and safeguard the investments by US companies and individual investors in a deceptively familiar legal environment of Panama, which is based on the Delaware Corporations Law and similar to the Wyoming Limited Liability Company Law, but allows bearer shares and untitled real estate sales; and secondly, to bring legitimacy to wealth preservation services, based on Panama family foundations, which does not involve any US tax evasion or creditor fraud. “
The company is headed by Juliette M. Passer, a U.S. attorney, with over 21 years of broad international transactional experience, specializing in corporate and project finance, as well as new media transactions and e-commerce. Ms Passer holds a JD (cum laude) from Cardozo School of Law and studied Soviet Law at the Columbia University School of Law. She practiced law with the international law firms of Debevoise & Plimpton and Patterson, Belknap, Webb & Tyler in New York, specializing in corporate and project finance. She is a member of the Council on Foreign Relations and serves on boards of several companies. She is listed in Who’s Who in American Law and Who’s Who in American Women. As a pro bono undertaking, she represents Russian and Ukrainian artists, dancers and musicians. She is a frequent guest lecturer and an adjunct graduate faculty at the Russian Juridical Academy, Kaplan University, Moravian College and others.
Trust experience and knowledge™.
Due Diligence for Transactions in Offshore Jurisdictions
We provide peace of mind!™
“Due Diligence for Transactions in Offshore Jurisdictions”
PRESENTED BY JULIETTE PASSER, ESQ., PRESIDENT AND GENERAL COUNSEL, PANAMANAGEMENT CORPORATION for STEP USA (SOCIETY OF TRUST AND ESTATE PRACTITIONERS)
Thursday, October 18, 2012
Today, global transactions present unique challenges for businesses seeking to obtain and analyze diligence information. Some of these challenges are as basic as language and cultural differences, while others are far more complex and require focused and creative inquiries, involving decentralized computer systems and document retention policies, different accounting systems, and regulatory frameworks regarding foreign investment in or ownership of domestic entities, bearer shares and nominee directors corporate entities, possessory and property rights and title registrations. Cross-border transactions also implicate potential Foreign Corrupt Practices Act and OECD Convention liabilities and the courts and legal systems of foreign jurisdictions. Careful due diligence regarding the enforceability of deal terms is essential to ensuring that each party is getting what it expects out of the deal. Legal counsel with experience in these transactions can help clients navigate through all of the traps that may be encountered by the unwary.
Presentation Summary.
Effective due diligence assures that a transaction achieves its anticipated benefits. It must identify (i) deal breakers, (ii) key risks and (iii) operational issues.
Due diligence process is always transaction-specific: there is no such thing as standard due diligence process – it must identify and allow for mitigation of risks in each specific case. In the developing and emerging markets, due diligence is particularly important – asking the right questions is not enough as you may receive inadequate information.
Lastly, the nature of the transaction, an equity purchase of shares or the purchase of assets only, will impact how liabilities are apportioned under local law, which may differ from a standard Western model.
Key factors:
Cultural barriers;
Language barriers;
Political and market uncertainty;
Different legal, financial and accounting systems;
Less developed governmental institutions;
Opaque regulatory practices;
Uncertain labor laws or burdensome pro-labor regulations;
Corrupt and inefficient local courts.
Recommendations:
1. Retain local counsel - preferably one affiliated with a major US law firm and visit your foreign jurisdiction.
2. Review formation and ownership of the local entity – establish identity of beneficial owners; type of shares (verification of ownership represented by bearer shares needs particular attention); voting rights agreements; shareholders agreements (in many developing jurisdictions shareholders agreements will not be executed and are not common); authority of people you are dealing with to represent the entity, provide information and to enter into the transaction.
3. Personal information and reputations of key players, directors and owners – in many jurisdictions, directors and officers are nominees who do not participate at all in the management of the entity; original executed resignations may be needed for each nominee to transfer ownership of the entity, identity of beneficial owners must be disclosed.
4. Financial and accounting matters – many companies keep two or ever three sets of books, some are for legitimate reasons, some are not so; make sure to compare all sets and convert to GAAP or IFRS, as feasible.
5. Foreign Corrupt Practices Act (FCPA) for U.S. companies - is one of the top priorities for due diligence; ask for compliance with FCPA in writing, whenever possible; review any unusual payment patterns, high commissions, underfunded business partners and vague accounting entries, such as ”entertainment.” Consider applicability of the OECD Convention on Combating Bribery of Foreign Pubic Officials.
6. Labor and employment matters – review local laws regarding severance pay, notices for firing for cause and without cause and other required payments under local Labor Codes; in many developing counties employment contracts may be implied and written contracts may be disregarded; employees may be entitled to as many as 14 months of compensation in one calendar year – be careful about budgeting for downsizing and firing of employees.
7. Environmental laws – review tort and criminal liability under the local laws; permitting may involve lengthy bureaucratic procedures; variable enforcement may be common; different standards for local companies and multinationals may be prevalent.
8. Real Estate issues – ownership of real estate; title to land; possessory rights will affect vesting and titling; ownership must be researched and verified for many years back; building codes and certificates of occupancy rules may vary widely from the US.
9. Intellectual Property (IP) – local protection and rights of ownership of IP; third party licensing issues, ownership of innovations – is it a licensor (as in the US ) or the licensee (in other jurisdictions) who owns rights to innovations to your IP?
10. Political risks – consider non-commercial risks; availability of political risk insurance and its impact on the cost of doing business in each jurisdiction.
11. Local Courts or Arbitration – we always opt for arbitration in a neutral forum with established arbitration procedures based on UNCITRAL model rules; local Courts may be ineffective and corrupt or outright hostile to foreign investors.
12. Indemnification provisions – best due diligence practice allows to discover hidden issues during the negotiations stage and thus provide for price adjustment and proper indemnification negotiated before the deal is closed; failed due diligence may lead to expensive and extensive litigation.
13. List f hidden issues to bear in mind:
a. Current and pending legislation;
b. Environmental non-compliance;
c. Corrupt practices;
d. Poor accounting and controls;
e. Poor maintenance and aging equipment and assets;
f. Product quality controls;
g. Product safely problems; h. Disgruntled employees;
i. Disgruntled investors;
j. Disgruntled customers;
k. Technology and IP problems;
Conclusion
All in all, due diligence should be a cooperative process to the extent possible rather than a confrontational one. So, build a competent local team and be creative in pealing the proverbial onion of potential problematic issues.
By Juliette Passer, Esq. 2012
About Us
Our company provides legal and financial consulting to both US and foreign clients involved in many industries. Through our office in Panama City, we provide services to both individual and institutional investors interested in projects located in Panama Republic, including real estate transactions, wealth preservation and asset protection, international trade, equipment leasing, international licensing, trademark registration, sales and purchases of businesses, management of administrative and subsidiary offices registered in Panama and choices of passive investment vehicles. The clients of PanaManagement receive personalized and effective representation based on combination of major firms experience and quality at highly competitive rates.
As a consulting company with an integrated in-house legal department, we have the capabilities to handle your projects from the inception to completion.
“The purpose of establishing an office in Panama is two-fold: first, to facilitate and safeguard the investments by US companies and individual investors in a deceptively familiar legal environment of Panama, which is based on the Delaware Corporations Law and similar to the Wyoming Limited Liability Company Law, but allows bearer shares and untitled real estate sales; and secondly, to bring legitimacy to wealth preservation services, based on Panama family foundations, which does not involve any US tax evasion or creditor fraud. “
The company is headed by Juliette M. Passer, a U.S. attorney, with over 21 years of broad international transactional experience, specializing in corporate and project finance, as well as new media transactions and e-commerce. Ms Passer holds a JD (cum laude) from Cardozo School of Law and studied Soviet Law at the Columbia University School of Law. She practiced law with the international law firms of Debevoise & Plimpton and Patterson, Belknap, Webb & Tyler in New York, specializing in corporate and project finance. She is a member of the Council on Foreign Relations and serves on boards of several companies. She is listed in Who’s Who in American Law and Who’s Who in American Women. As a pro bono undertaking, she represents Russian and Ukrainian artists, dancers and musicians. She is a frequent guest lecturer and an adjunct graduate faculty at the Russian Juridical Academy, Kaplan University, Moravian College and others.
Trust experience and knowledge™.
Monday, September 17, 2012
New Residency Law in Panama
Summary of the Executive Decree No. 343 of May 16, 2012
which created a subcategory of permanent residency
in the capacity of “national foreigners” for residents
of specific countries that maintain friendly,
professional, economic or investment
relations with the Republic of Panama.
The Executive Decree 343 of May 16, 2012 was published in the Official Gazette No. 27038 of May 21, 2012. It is based on the Law 3 of February 2008, which created the Immigration National Service and specifically stated that the Government will be able to create immigration status sub-categories in order to facilitate cooperative ties with friendly countries.
The Decree 343 creates new permanent residency subcategory referred to as “national foreigners,” who are residents of specific countries that maintain friendly, professional, economic or investment relations with the Republic of Panama.
The listed countries are:
1- Germany
2- Argentina
3- Australia
4- Austria
5- Brazil
6- Belgium
7- Canada
8- Spain
9- USA
10- Slovakia
11- France
12- Finland
13- Netherlands
14- Ireland
15- Japan
16- Norway
17- Czech Republic
18- Switzerland
19- Singapore
20- Uruguay
21- Chile
22- Sweden
To apply the petitioner needs to comply with the general requirements established in Article 28 of the Law 3 as stated above, which are applicable to all the visa applications, specifically:
1- Notarized copy of full passport
2- Criminal record
3- Health certificate
4- Payment of $250.00 to National Treasury and $800.00 to the Immigration Service
5- Sworn Declaration
In addition to the above, the petitioner will need to present the following documentation:
1- 3 carnet photos
2- Documentation that confirms the type of business conducted in Panama that proves the need to obtain the permanent residency, based on economic or professional activity of such entity.
3- Documentation establishing economic solvency, such as but not limited to:
* Bank certification or statement of account of the last month which shows balances not less than $5000 or proof of property ownership in Panama.
4- Copy of residency document of the country of origin.
5- Responsibility letter if dependants are included in the application.
6- In case of dependants, certification that proves kinship.
The petitioner can include dependant spouse and children under 18 years of age, family members with disability and depending parents. For children between 18 to 25 years, they can be included as dependants if they are studying on a regular basis and are economically dependent on the petitioner.
Monday, May 28, 2012
Panama new minimum wage rates
Minimum Wage – Executive Decree Number 240, as of December 28, 2011
Executive Decree Number 240 dated December 28, 2011 by Panama’s President Ricardo Martinelli establishes the minimum wage per hour, depending on the economical activity, occupation and size of the company in all the national territory.
The minimum wage rates for the two regions in which the territory is divided:
Economic Activity Region 1 Region 2
AGRICULTURE, CATTLE FARMING,
HUNTING FORESTRY, FISH FARMING
(NATIONAL) (in US Dollars)
• Small Business 1.22 1.22
• Big Business 1.43 1.43
Poultry farming and sub products with more
than 50 employees 1.43 1.43
Plantain Activities 1.43 1.43
Fishing (national)
Artisan 1.72 1.72
Industrial 1.79 1.79
AGRIBUSINESS
Small Business (agricultural part) 1.22 1.22
Big Business (agricultural part) 1.43 1.43
Small Business (processing part) 1.76 1.47
Big Business (processing part) 2.08 1.72
MINING AND QUARRY ACTIVITIES
(NATIONAL) 2.14 2.14
Construction Sand Activities 2.14 2.14
MANUFACTURING INDUSTRIES
Small Business 1.76 1.47
Big Business 2.14 1.77
Economic Activity Region 1 Region 2
Distillation, Rectification and mixing
Of alcoholic beverages 2.14 1.79
Paint, varnish and coating fabrication 2.14 1.79
Cement and concrete fabrication 2.36 2.14
Refrigeration equipment reparation 2.08 1.75
Processing of sugar cane (National) 2.08 2.08
ELECTRICITY, GAS, STEAM,
AIR CONDITIONING AND ICE SUPPLY 2.36 2.36
Electric Power generation, transmission and
Distribution 2.36 2.36
Ice production 2.08 1.72
WATER SUPPLY, SEWER AND WASTE
ACTIVITIES 2.36 2.36
Water distribution and depuration (National) 2.36 2.36
Sewer 2.14 1.76
Collection, treatment and elimination of waste 2.14 1.76
Processing and recuperation of waste
Materials 2.08 1.72
CONSTRUCTION 2.36 2.24
Drainage of agricultural lands and woods 1.43 1.43
WHOLESALE AND COMMISSIONS TRADE 2.14 1.76
Import agencies 2.14 1.76
Sugar cane products sale (National) 2.08 2.08
Economic Activity Region 1 Region 2
Combustible tanks 2.14 1.76
RETAIL SALE TRADE
• Small Business 1.74 1.45
• Big Business 2.14 1.76
Supermarkets (with 5 or more branches) 2.08 1.71
Gas stations 2.08 1.71
FREE TRADE ZONES, SPECIAL ECONOMIC
ZONES 2.30 1.76
HOTELS
• Small Business 1.78 1.48
• Big Business 2.08 1.71
Hotels and resorts with franchise 2.14 1.76
Hotels with more than 200 rooms 2.14 1.76
Residential Hotels and Motels 2.14 1.76
RESTAURANTS AND BARS
• Small Business 1.76 1.47
• Big Business 2.14 1.76
Night Clubs (national) 2.30 2.36
TRANSPORTATION 2.14 1.76
Cargo transportation in free trade or special
Economic zones 2.08 1.71
Airway and waterway transportation 2.08 1.71
Port workers with companies of more than
50 employees (National) 2.36 2.36
International Airports (with more than 50
commercial premises) (National) 2.36 2.36
Economic Activity Region 1 Region 2
Bus drivers (National) 2.36 2.36
Flight Deck crew (National) 2.36 2.36
WAREHOUSING, STORAGE AND
POST OFFICE 2.08 1.71
INFORMATION AND COMMUNICATIONS
(NATIONAL) 2.14 2.14
Editing activities 2.14 1.77
Radio and Television production 2.14 1.76
Movies, Videos and Sound production 2.14 1.76
Movie Theaters 2.14 1.76
Telecommunications 2.36 2.36
Radio and Television Broadcasting 2.36 2.36
Technological and Service Info Activities 2.14 2.14
News Agencies 2.14 1.76
FINANCIAL AND INSURANCE ACTIVITIES 2.36 2.36
Banks and financial institutions 2.36 2.36
Consumers Cooperative 2.36 2.36
Pension and Insurance Activities 2.36 2.36
Pawn Shops 2.08 1.71
REAL ESTATE ACTIVITIES 2.36 2.15
Malls with more than 50 premises (National) 2.36 2.36
Economic Activity Region 1 Region 2
ADMINISTRATIVE AND SUPPORT
ACTIVITIES (NATIONAL) 2.14 2.14
RENT AND LEASE ACTIVITIES (NATIONAL) 2.14 2.14
• Vehicles rental 2.14 2.14
• Internet Café Activities 1.98 1.93
EMPLOYMENT AGENCIES ACTIVITIES 2.14 2.14
(NATIONAL)
TOURIST AGENCIES, TOURIST OPERATORS,
AND RESERVATION SERVICES 2.08 1.71
BUILDING AND LANDSCAPING SERVICES
ACTIVITIES (NATIONAL) 2.08 2.08
• Landscaping Maintenance
Activities (gardens and green
Areas) 1.43 1.43
BUSINESS SUPPORT AND ADMINISTRATIVE
OFFICE ACTIVITIES (NATIONAL) 2.08 2.08
• PHOTOCOPIES BUSINESS
(National) 2.08 2.08
SECURITY AND SURVEILLANCE AGENCIES
ACTIVITIES (NATIONAL) 2.08 2.08
PROFESSIONAL, TECHNICAL AND
SCIENTIFIC ACTIVITIES (NATIONAL) 2.08 2.08
Veterinary activities 2.08 1.71
Attorney, Accounting and Audit Activities
(15 employees and more) (National) 2.14 2.14
Attorney, Accounting and Audit Activities
(14 or less employees) (National) 2.08 2.08
Economic Activity Region 1 Region 2
Attorneys (National) 2.36 2.36
TEACHING (Administrative employees) 2.14 1.76
HEALTH SERVICES 2.14 1.76
Hospitals and Clinics 2.36 1.76
Health Technicians 2.36 2.36
ARTS AND ENTERTAINMENT ACTIVITIES
(NATIONAL) 2.14 2.14
Casinos and gambling activities (National) 2.36 2.36
Gyms (National) 2.36 2.36
OTHER SERVICE ACTIVITIES 2.14 1.76
Non-profit organizations 2.08 1.71
Computer repair and maintenance (National) 2.14 2.14
Household equipment repair and
maintenance
• Small Business 1.76 1.45
• Big Business 2.08 1.71
Horizontal Property Residences (Buildings
With 10 floors or more) (National) 2.36 2.36
Spas and Esthetics Clinics 2.36 1.76
Journalists (National) 2.36 2.36
FOREIGN ORGANIZATIONS ACTIVITIES 2.14 1.76
The regions in which the territory is divides are as follows:
REGION 1: Panamá, Colón, San Miguelito, David, Santiago, Chitré, Aguadulce, Penonomé, Bocas del Toro, Chorrera, Arraiján, Capira, Chame, Antón, Natá, Las Tablas, Bugaba and Boquete
REGION 2: All the other Districts of the country
Small Business made reference to business with 10 or less full time employees in case of agricultural, cattle, services or retail commerce companies, 15 or less in case of manufacture companies and 20 or less in case of agro-industrial companies.
The monthly maid services will be paid as follow:
• Panamá, Colón, San Miguelito, David,
Santiago, Chitré, Aguadulce, Penonomé
Bocas del Toro, Chorrera, Arriaján, Capira
Chame, Antón, Natá, Las Tablas, Bugaba and
Boquete US$200.00
• All the other Districts of the country US$175.00
The decree is effective as of January 1, 2012.
Hotel opening would boost competition in Panama City, Panama
The hotel industry in Panama City, Panama is on the eve of experiencing a substantial increase in competition with the entry of about a 1,500 rooms available for tourists at the Hard Rock Hotel, located on Avenida Balboa.
The franchise, known for its restaurants and hotels throughout the world, will open officially in October 2012, but has begun to offer half of its rooms in a soft opening in order to expose the local market to its restaurants and bars.
Following its opening, the hotel would be the largest in terms of rooms in Panama, representing about 7.5% of 20,000 hotel rooms planned for completion in 2014, of which 50% will have been built between 2010 and 2014.
It is expected that the increasing number of rooms will create fierce competition among industry participants to obtain a high occupancy rate, which is somewhat in decline, but will be good for tourists looking for better values. This drop represents a decline of six percentage points of the annual rate of 12% between January 2011 and January 2010.
Despite the decrease in occupancy rates, the inflow of tourists to the country grew by 16% during the same period, surpassing the 2 million tourists, reflecting the greater diversity in hotels.
Among the other brands soon to open in Panama is the Waldorf Astoria, with 126 rooms and the Hilton Panama, with 351 rooms.
Wednesday, March 21, 2012
Panama increases minimum wage for various activities
Minimum Wage – Executive Decree Number 240, as of December 28, 2011
Executive Decree Number 240 dated December 28, 2011 by Panama’s President Ricardo Martinelli establishes the minimum wage per hour, depending on the economical activity, occupation and size of the company in all the national territory.
The minimum wage rates for the two regions in which the territory is divided range from $1.22 to $2.36
The regions in which the territory is divided are as follows:
REGION 1: Panamá, Colón, San Miguelito, David, Santiago, Chitré, Aguadulce, Penonomé, Bocas del Toro, Chorrera, Arraiján, Capira, Chame, Antón, Natá, Las Tablas, Bugaba and Boquete
REGION 2: All the other Districts of the country
Small Business made reference to business with 10 or less full time employees in case of agricultural, cattle, services or retail commerce companies, 15 or less in case of manufacture companies and 20 or less in case of agro-industrial companies.
The monthly maid services will be paid as follow:
• Panamá, Colón, San Miguelito, David,
Santiago, Chitré, Aguadulce, Penonomé
Bocas del Toro, Chorrera, Arriaján, Capira
Chame, Antón, Natá, Las Tablas, Bugaba and
Boquete US$200.00
• All the other Districts of the country US$175.00
The decree is effective as of January 1, 2012.
Executive Decree Number 240 dated December 28, 2011 by Panama’s President Ricardo Martinelli establishes the minimum wage per hour, depending on the economical activity, occupation and size of the company in all the national territory.
The minimum wage rates for the two regions in which the territory is divided range from $1.22 to $2.36
The regions in which the territory is divided are as follows:
REGION 1: Panamá, Colón, San Miguelito, David, Santiago, Chitré, Aguadulce, Penonomé, Bocas del Toro, Chorrera, Arraiján, Capira, Chame, Antón, Natá, Las Tablas, Bugaba and Boquete
REGION 2: All the other Districts of the country
Small Business made reference to business with 10 or less full time employees in case of agricultural, cattle, services or retail commerce companies, 15 or less in case of manufacture companies and 20 or less in case of agro-industrial companies.
The monthly maid services will be paid as follow:
• Panamá, Colón, San Miguelito, David,
Santiago, Chitré, Aguadulce, Penonomé
Bocas del Toro, Chorrera, Arriaján, Capira
Chame, Antón, Natá, Las Tablas, Bugaba and
Boquete US$200.00
• All the other Districts of the country US$175.00
The decree is effective as of January 1, 2012.
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