The Bill on Tax Incentives for Sports was approved

Panamanian athletes, their associations and federations that represent them, will receive a new tool for their development, after the National Assembly adopts it in the third debate, law no. 708, “which establishes tax incentives for sports”.

This bill, introduced by Deputy Ana Irene Delgado, has among its goals the achievement of growth and financial sustainability of national sports federations and associations duly recognized by the Panama Institute of Sports (Pandeportes), thereby strengthening the development of sports in Panama.

Delgado explained that a taxpayer can obtain sports promotion certificates from sports federations and associations up to 1% of his taxable income in a fiscal period, which will be applied as a tax credit to the income tax that must be paid in the said period.

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

Delgado indicated that the state will issue a tax credit each year that results from the added private investment.

This amount will be revised every five (5) years from the promulgation of this law.

This law is applied as a complete mechanism and measures implemented by the Panamanian state in creating tax incentives to contribute to the growth and financial sustainability of sports at the national level.

The mechanism used by the private company to support this sector through its social responsibility projects is envisaged through the acquisition of a certificate for the promotion of sports.