The Panamanian Government recently approved a bill that establishes an incentive program to recover and promote the conservation of natural forests. This bill is aligned with the objectives of the UN Sustainable Development Goals to conserve and restore the use of terrestrial ecosystem to sustainably manage forest, combat desertification, halt and reverse land degradation and biodiversity loss.
This bill recognizes the following tax incentives, that apply to owners and tenants of private lands, and concessionaires of state-owned lands:
Income tax exemption on property registered in the Forestry Register that maintains and/or increases reforested areas, in relation to net profits resulting from its use in accordance with the Forestry Management Plan submitted and approved by the Panama Environmental Office. Exemption from property tax and real estate transfer tax on premises exclusively dedicated to commercial timber and non-timber plantations, conservation and/or restoration of natural forests in more than seventy-five per cent (75%) of its suitable extension. Exemption of introduction duties on the importation of machinery and equipment to be used in the activities listed in the bill, that follow the Forestry Management Plan approved by the Panama Environmental Office and procedures agreed with the Customs Administration. Activities covered under this bill contemplate the following:
Protection and conservation of natural forests. Natural assisted regeneration. Restoration of natural forests. Agroforestry systems: silvopastoral and agroforestry. Sustainable management of natural forests. Commercial forestry plantations. Processing of timber and non-timber products. Forest research, development and innovation. Exportation of forestry products that have an adequate custody chain and come from an environmentally sustainable reforestation project. Through the activity listed as commercial forestry plantations, this regulation...