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Panama Seeks to Adopt a Framework Law for Public-Private Partnerships
Morgan & Morgan, September 2019

For the past few decades, Panama has established public-private partnerships (“PPPs”) in projects as diverse as toll roads, water treatment plants, ports, telecommunications networks and the generation and distribution of electricity...

The Chargeback of the Salvadoran Consumer Law
Consortium Legal - El Salvador, August 2019

As of August 7th, 2018, the amendments of the Consumer Protection Law (CPL), which includes for the first time, the consumer protection in the field of electronic commerce (e-commerce), taking that as the contracting process or the goods, services and commercial information trading through data communication webs...

Central America: Tax Amendments and Opportunities
Consortium Legal - El Salvador, August 2019

Reform is in the air for Central America’s tax systems. Alfredo Rodríguez, Diego Martín ­Menjívar, Armando Manzanares,Carlos Taboada and Diego Salto Van der Laatof Consortium Legal take a look. Central America’s tax systems have certainly evolved over the past few years. Looking ahead, the need to increase fiscal revenues and the lack of modernised systems will trigger further reforms in most of the countries...

Regulations on Accounting Records for Offshore Companies
Morgan & Morgan, August 2019

In order to comply with the international guidelines regarding corporate transparency, the government of Panama enacted Law 52 of October 27, 2016 in the Official Gazette, which establishes the obligation for Panamanian companies and other entities to maintain accounting records, financial records and supporting documentation of all transactions that took place during the last five (5) years, so that their financial status can be easily determined with reasonable accuracy...

Electric Sector in El Salvador
Consortium Legal - El Salvador, July 2019

At the end of the 19th century, mechanisms that transformed natural resources into energy began. The conception of electricity as a private good, which fosters economies of scale and the promotion of transmission and generation megaprojects in the sector, consciously and interestedly omit sustainable energy alternatives from a social and environmental point of view. The causes that leave aside this type of projects are based on the lack of economic profitability for investment interests...

Panama: Regulations Applicable to Tax Deductions from School Expenses
Morgan & Morgan, July 2019

Law 37 of June 5, 2018, adds line 9 to article 709 of the Fiscal Code, which is related to the annual income tax deductions to which natural persons are entitled, regarding school expenses incurred by the taxpayer with respect to their dependents. Additionally, Executive Decree 368 of December 26, 2018 and Resolution No. 201-1635 of May 13, 2019, establish the regulations applicable to the deduction of said expenses...

El Salvador: Elements of Arbitration Clauses in International contracts
Consortium Legal - El Salvador, July 2019

Dating back to the historical conquests of Alexander the Great in the years 300 B.C., which provided an unprecedented foundation for commercial exchanges between Macedonia, Persia and Egypt, along with the Mongolian Empire’s ambitious Silk Road that ensured, since 130 B.C...

New immigration changes in Panama: SEM, Special Regularization Process and Aviation
Morgan & Morgan, June 2019

Executive Decree No. 238 of June 10, 2019 Requirements to apply for permanent residency for executives of Multinational Headquarters offices (“SEM” for its acronym in Spanish) As of June 11th, 2019, the requirements to apply for the Permanent Resident Permit for Executives of SEM companies who i) continue working at a SEM company, and ii) no longer work for a SEM company...

El Salvador: The Adaptation of Intellectual Property to Artificial Intelligence
Consortium Legal - El Salvador, June 2019

A few years ago artificial intelligence was a concept applied to nothing else but science fiction films, nowadays, it has become a reality for many companies and industries in the development of their commercial, corporate and industrial activities. Before we start to understand the strengths or weaknesses of artificial intelligence and its perspective from the right of intellectual property, it is considered convenient to conceptualize it...

The commercial value of a brand as an intangible good in El Salvador
Consortium Legal - El Salvador, May 2019

The incorporation of the Law on Security Interests in El Salvador has the objective to create a registry for security interests, that is to say, the inscription of the security interests’ creation, modification, extension, termination and execution, as well as the publicity of these instruments. The Commercial Value that some brands have, plays a very important role and represents, for some entrepreneurs, a mechanism which enables them to access credits...

April 26: World Intellectual Property Day
Morgan & Morgan, April 2019

In the year 2000, the United Nations General Assembly designated April 26 as World Intellectual Property Day. The purpose of this is to highlight the role thatintellectual propertyrights play in encouraging innovation and creativity. Across the globe, and at the initiative of the World Intellectual Property Organization (WIPO), there is a campaign every year to attract public interest to issues related to Intellectual Property...

El Salvador: The Vertical Solution
Consortium Legal - El Salvador, April 2019

1525, the year in which the city of San Salvador was founded under the orders of Pedro de Alvarado, in Las Bermudas Valley, a place located between the city of Suchitoto and the city of San Pedro Perulapan. At this moment, you may probably be thinking “Las Bermudas Valley? That place does not ring a bell to me, I thought that San Salvador was founded where our current historical city center is located.” The answer is both yes and no at the same time...

Panama: New Law on Protection of Personal Data
Morgan & Morgan, April 2019

With the enactment of Law No. 81 on Protection of Personal Data, the Republic of Panama aims to establish the principles, rights, obligations and procedures that regulate the protection of personal data, also considering their interrelation with private life and other rights and fundamental freedoms of citizens, by natural or legal persons, public or private law, lucrative or not, that process personal data in the terms provided in the Law...

Crowdfunding as a Source of Financing for Businesses
Morgan & Morgan, February 2019

  One of the biggest challenges that micro, small and medium enterprises face when trying to settle in and achieve success as profitable businesses is to obtain capital and sources of financing...

Transfer Pricing Update In Panama
Morgan & Morgan, January 2019

The regulation of Transfer Pricing is one of the mechanisms through which the Directorate General of Revenue (DGI) seeks to avoid the erosion of the tax base. In Panama, it is regulated in the Fiscal Code in its Chapter IX from Article 762-A to 762-Ñ. The obligation on the issue of Transfer Pricing and specifically with the study is generated since the 2011 period...

Importance of the Effective Collection of Real Mortgage Loan
Morgan & Morgan, November 2018

The loan agreement secured by mortgage is a legal and financial concept that has undoubtedly been a pillar of world economic progress. Hence, the Supreme Court of Justice of Panama in some of its judgments has given it its importance as part of the economic public order...

The Future of The Law Firms: Building an Effective Relationship Between Millennials and AI
QIL+4 ABOGADOS, October 2018

The role of the Millennial lawyers and the recent incorporation of Artificial Intelligence (“AI”) in law firms are current trending topics. As a 27-year old associate of a law firm based in Guatemala City, every time I read about AI and that global law firms are incorporating AI to their practice, I ask myself, will I be replaced by it (or IT)...

Existing Regulation on Data Protection in Panama
Morgan & Morgan, October 2018

In the framework of a globalized world and social networks that are established as a measure of possible interest of economic, social and political groups, data protection regulations become more relevant...

Why Bahamas is the Clear Choice for Financial and Corporate Services Providers?
Morgan & Morgan, September 2018

Morgan & Morgan opened its first offices in The Bahamas since 1991. We created MMG (Bahamas) Ltd. as a corporate service and later on, in 1996, founded MMG Bank & Trust Ltd., which started our financial unit´s successful path into the financial service industry...

New Law Establishes a Legal Framework for the Comprehensive Approach to Sexually Transmitted Infections (STIs) and the Human Immunodeficiency Virus (HIV)
Morgan & Morgan, September 2018

Law 40 has, among other, some provisions that affect the workplace, such as the following: Obligations and prohibitions for employers: Any discrimination and stigmatizing or segregating act is prohibited to the detriment of those affected, as well as against their relatives and friends. Every employer is obliged to implement practical ILO recommendations on STI and HIV, and must take all necessary measures to effectively protect the life and health of its affected workers...

Gender Quotas on Corporate Boards
Morgan & Morgan, August 2018

Last year Panama joined the list of countries that have established quotas as a mean for reducing the gender gap. Law 56 of 2017 creates a women quota of 30% on corporate boards of public entities and certain private entities. The Law was recently regulated through Executive Decree 241-A of 2018...

Biased Tax Collection on 'Streaming'
BLP, July 2018

According to the bill, online purchases will also be taxed Recently, the government announced the submission of the latest tax reform to the Legislative Assembly, which is called the Public Finance Enhancement Plan. This new tax package is the merging of four projects that have been floating around the Legislative Assembly for a few months now...

Panama: Sexual Harassment in Companies and in the Education Sector
Morgan & Morgan, May 2018

The International Labor Organization (ILO) defines sexual harassment as “any conduct of unwanted sexual nature that, according to the reasonable perception of the recipient, interferes with their work, is established as a condition of employment or creates an intimidating hostile or offensive work environment...

Could Blockchain Help The Recognition Of International Arbitration Awards?
QIL+4 ABOGADOS, May 2018

“We simply cannot go on with this utterly outmoded way of working…Endlessly re-keying in the same information; repeatedly printing and photocopying the same documents; moving files about, losing all or parts of them in the process… It is a heavy handed, duplicative, inefficient and costly way of doing our work and it is all about to go. Considerably past time, we will finally catch up with the world.” Sir Brian Leveson...

Guatemalan Judge Issues Pace Setting Historical Ruling
QIL+4 ABOGADOS, April 2018

Guatemalan respected Judge Erika Aifan issues a historical ruling in a criminal case brought against construction companies. A plea bargain was reached under an abreviated process allowed under Guatemala´s Criminal Law where senior executives for the companies accepted making facilitation payments to the ex-Minister of Construction in order to accelerate backed payments owed for previous construction deals...

The Legal Regime of Tax Returns in El Salvador
Consortium Legal - El Salvador, April 2018

Speaking of compliance with tax obligations comes to our mind the duty to pay taxes (noun) as the Tax on the Transfer of Goods and Provision of Services (VAT) or Income Tax (ISR), which undoubtedly It is true; but equally certain it is that with the payment obligation exists another set of obligations formal or adjective. In this dual context of formal and substantive tax obligations, is of great relevance filing tax returns...

Reflections About Neutrality: How The Government Taxes Productivity
QIL+4 ABOGADOS, February 2018

Neutrality is a basic concept in tax policy which establishes that a tax system should not interfere in the decision-making process, so that the decision should be taken based on its economic merits and not in its tax implications. Of course, this is not an absolute principle because it is understood that absolute neutrality is impossible to achieve...

Diversity, It Makes Sense
QIL+4 ABOGADOS, January 2018

Diversity has been a trending topic for the last years. It shows that we, as a society, are acknowledging the past practices of our industries in which one small group of individuals have a platform to thrive and grow within our institution while other groups might have a harder time. There are exceptions to this rule, but it is undisputable that for certain people due to their sex, sexual orientation, race, religion, etc. it’s harder to break the glass ceiling...

Remuneration for Holidays or National Mourning in Panama
Morgan & Morgan, November 2017

Most of holidays and national mourning that are covered by Article 46 of the Labor Code of the Republic of Panama are in November, December and January. In fact, they are considered as such, November 3, 5, 10 and 28; December 8 and 25; and on January 1 and 9...

Corporate Consilience
QIL+4 ABOGADOS, October 2017

Central America is at an inflection point regarding acceptable compliance and conformity. Among all the anxiety and instability that change will bring, it is welcoming to see that separate disciplines are pushing towards similar objectives in Corporate Governance. A quick discussion on Director´s Responsibility provides a glimpse on how new Governance issues will reshape slanted interpretations of the law...

Regulatory Immigration Framework: Options to immigrate and work in Panama
Morgan & Morgan, August 2017

Introduction. Panama has become a popular destination to immigrate in the region, due to its economic growth and socio-political stability which contrasts with other neighboring countries´ intricate conditions. Within the last decade, multiple infrastructure projects, as well as incentives favorable to establish and operate multinational companies have resulted in an increase of foreign nationals within the country, creating a multi-ethnic and multi-cultural society...

Paternity Leave for Employees and Public Servants (Panama)
Morgan & Morgan, July 2017

Act 27 was published in the Official Gazette No. 28285-B earlier this year, establishes the Paternity Leave, applicable both to employees of private sector, as well as to public servants, effective since May 25th, 2017.This Act, whose initiative was promoted by the Ministry of Labor, is based on the duty of the Panamanian state to protect the family, sacred in our Constitution...

Why Do Signings Appoint For Young Attorneys?
Consortium Legal - El Salvador, March 2017

Today, we are at a time where two-generation professionals are actively developing and competing with each other within their own career. The well-known "millenials" or generation "Y", born according to some analysts between the years 1981 to 1999, and where the majors of this generation are already in the 36 years of life, and those of the generation X...

Due Diligence: A challenge for the real estate sector of the Republic of Panama
Morgan & Morgan, June 2016

Growth of the real estate industry in Panama in recent years is noticeable, not just locally but at a regional level as well. Iconic architectural works such as the Trump Tower, F&F Tower (popularly called the “Screw”) among others, attracts positive criticism from different actors in the business and associations in the construction, development and promotion of the real estate business. In part, real estate growth in Panama is due to the ease in the execution of real estate transactions...

Guatemala's Anti-Corruption Shock Therapy
QIL+4 ABOGADOS, June 2016

Guatemala is experiencing an unprecedented and well-deserved offensive against corruption. An Ex-President and Vice-President along with many ex-Cabinet members are currently being prosecuted for a growing array of crimes including passive graft, money laundering and tax fraud, among others. The indictments are being brought through the efforts of a UN-sponsored commission which, until recently, had limited success in dismantling “organized crime”, its principal mandate...

Opportunities in Guatemala: Public – Private Partnerships
QIL+4 ABOGADOS, April 2016

Using the Infrastructure Development Partnership Law (Ley de Alianzas para el Desarrollo de Infraestructura Económica) enacted in 2010 and its specific Rules, the Guatemalan Government through the corresponding government agencies (Agencia Nacional de Alianzas para el Desarrollo de Infraestructura Económica – ANADIE and the Programa Nacional de la Competitividad – PRONACOM), is promoting a project portfolio under BOP scheme (built/operate/transfer)...

Effective in 2017, Panama Takes a Shot at Insolvency Reorganization Processes
Morgan & Morgan, January 2016

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Drone Regulation in Guatemala
QIL+4 ABOGADOS, December 2015

Although many of us still wonder at a drone cruising the sky, it has become relatively common to see these devices around. Drones are used for commercial, industrial, marketing and informational purposes, and also for pure fun and enjoyment. Drones, technically referred to as Unmanned Aerial Vehicles (UAV), are now part of our lives. As many other aspects of day-to-day life, there is a regulation in Guatemala that applies to drones, though it is scarcely known by the general public...

The security trust in financing the purchase of real estate
Morgan & Morgan, May 2015

The possibility of buying real estate rests normally on the capacity of an individual or company to acquire debt, reason why credit entities play an essential role in the success of the real estate market. Lately, we have noticed that in addition to the traditional loan guaranteed by a mortgage, there is an offer for loans guaranteed by a security trust...

Real Estate Trusts in Panama: the New Frontier
Morgan & Morgan, May 2015

Growth of the real estate industry in Panama is evident everywhere. Skyscrapers that could very well be found in large cities such as Singapore, Hong Kong or Miami, rise proud in former residential and colonial areas of Panama city. Panama’s architectural identity is driven by important local and international architects, and symbolic buildings such as the Biodiversity Museum and the F&F Tower, also known as ‘the Screw’...

El Salvador: Government Efforts To Improve Investment Climate Should Increase
Consortium Legal - El Salvador, March 2015

Private sector, investors and experts agree that the Government of El Salvador has to improve the business climate to attract more national and foreign investment that would contribute to increase the Gross Domestic Product and improve in this way the living conditions of the population...

Panama as Center for International Arbitration in Latin America
Morgan & Morgan, October 2014

Motivated by the desire to optimize all matters concerning arbitration and to adapt our previous legislation to the principles set by the United Nations Commission of International Trade Law (UNCITRAL), the Panamanian National Assembly enacted the Law No. 131 of 31st December 2013 on National and International Commercial Arbitration (the “Arbitration Act”). A summary thereof follows. Scope This Act applies to arbitrations, both national and international, with seat within Panamanian territory...

New Tax Legislation Creates Controversy and Upset In El Salvador
Consortium Legal - El Salvador, September 2014

The approval of amendments to the Tax Code and the creation of new taxes have caused upset and criticism among business sectors in El Salvador, accusations that they will affect competitiveness and a better economic performance, and lead to an increased cost of living...

More Control Over Under-Invoicing in Customs - Costa Rica
Consortium Legal-Honduras, September 2014

The Ministry of Finance announced that an improvement in the online inquiry concerning the value of declared merchandises intends to reduce under-declaration in 20%. For the purpose of establishing better controls on imported merchandises, the National Service of Customs of the Ministry of Finance has intensified and integrated software tools to apply in a more efficient and effective manner instruments of control over the value declared for the entry and exit of goods...

The Republic of Panama: A Hub for Multinationals
Morgan & Morgan, June 2014

What has made corporate stalwarts such as Maersk (shipping), Proctor & Gamble (consumer goods), LG (electronics), Caterpillar (construction equipment), CEMEX (construction materials) , Nike (sports equipment and apparel) and Heineken (breweries), just to name a few, choose to establish their headquarters in this small country with a population of merely 3...

Nicaragua, Global Destination for Investments
Consortium Legal - Nicaragua, June 2014

In recent years, Nicaragua has experienced sustained economic growth, as a result of a strict management of its fiscal, financial, monetary and exchange policies. Its business-related administrative procedures and laws have contributed to a strong inflow of direct foreign investment, so much that the country intends to exceed this year an amount of 1500 million in investments in sectors such as: power, manufacture, agriculture, tourism and others...

Proposal of Modifications to the Mercantile Register for Creation of Companies
Consortium Legal - Nicaragua, June 2014

For the purpose of reducing the time of creation of new companies and helping medium-sized and small companies in their organization, the Ministry of Economy (Mineco) submitted a proposal to make modifications to the Mercantile Register. Such modifications include changes in tariffs, online inquiries concerning the names of companies, reduction of terms and improvements in procedures...

Investment Funds in Panama
Morgan & Morgan, June 2014

A. Legal Framework. In the Republic of Panama, the operation of investment funds and the securities market in general is regulated by Decree-Law No. 1 of 8 of July of 1999 (as amended to date, the “Securities Act”) and the regulations issued by the SSM (the “Regulations”). The government entity that is in charge of the regulation and supervision of the securities market in Panama is the Superintendency of the Securities Market (the “SSM”)...

British Virgin Islands (“BVI”) VISTA Trust
Morgan & Morgan, February 2014

Although trust has always been regarded as one of the best succession vehicles, it has never been attractive for the succession of shares in companies because of a rule of English trust law, the “prudent man of business rule”. It was established in the case of Bartlett v Barclays Bank Trust Co Ltd [1980] 1 Ch 515 that it is the duty of a trustee to conduct the business of the trust with the same care as an ordinary prudent man of business would extend towards his own affairs...

A Simple and Fair Tax System in Costa Rica?
C.R. & F. Rojas Abogados, September 2013

The Nation published the result of a survey that basically asked two specific issues : (i) how easy (or clear) you think the tax system? and (ii) what is the main reason why some people evade taxes? Any analysis of the tax system should take into account an absolute truth: no one likes to pay taxes . As we have discussed on other occasions ... a person can understand why you pay taxes, but like ... or want to pay ... mmmm ... I do not think: that's another thing...

 

 

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