Panama published Law No. 223 of 8 June 2021 in the Official Gazette, which provides for the introduction of tax incentives for plastic recycling and replacement with biodegradable materials. The incentives include tax exemptions and discounts that may be claimed from the 2022 fiscal year.
For taxpayers engaged in recycling, the incentives include a 5-year exemption from income tax, dividend tax, and import tax on required equipment and machinery. For taxpayers required to replace plastic pr…