The law on tax incentives for sports has been sanctioned

Panamanian sport has a tool that will help it develop. This is the promulgation of a law which “establishes tax incentives for sports”.

This initiative, presented by deputy Ana Irene Delgado, initially the sports club agreed; later approved by National Assembly and sanctioned this Monday, June 5 at Official digital gazette no. 29796-A, Its main objective is to strengthen the growth and financial sustainability of national sports federations and associations duly recognized by it Panama Sports Institute (Pandeportes) and Panama Olympic Committee (COP).

In the document, which bears the signature of the president Laurentino Cortizo Cohenit is clarified that the taxpayer can acquire sports promotion certificates from sports federations and associations, duly recognized, up to 1% of his taxable income in the fiscal period, which will be applied as a tax credit on the income tax paid in said fiscal period.

Besides, yes alliances and associations They will be responsible for receiving the sports promotion certificates obtained from the total private investment and distributing them according to the individual private investment of each of its members.

It is also stated that regulation 383 of this law, which consists of nine articles, will be implemented Executive bodyToday, national sports federations and associations are recognized by Panama Sports Institute and Panama Olympic Committee will supervise The General Directorate of Revenue and the Chief Republic Comptroller.

It is mentioned that every year the state will issue certificates for the promotion of sports resulting from private investments in the amount of 0.25% of the national gross domestic product reported in the previous year. This amount will be reviewed every five years, from the date of promulgation of this law.

Sports entities that receive a real estate donation are required to build a facility for the performance of sports events or related activities, with minimal investments in improvements of up to B/30,000.00, and to start work within the next twelve months.

Built improvements must comply with all regulations related to the construction of permanent buildings and be reported and registered in Public Registry and State Land Administration, as established by applicable regulations.