PATTON MORENO & ASVAT
 
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Business Letters
Getting the Deal Through – Loans & Secured Financing 2016 with contributions from Ms. Ivette Martinez. Reproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through: Loans & Secured Financing 2016, (published in August 2015; contributing editor: George E Zobitz, Cravath, Swaine & Moore LLP) For further information please visit Click Here
Tax Regulations in Panama: The Place to invest in the Americas by Elias Solis Gonzalez. This article appeared in the Lawyer Issue Magazine 2015 Click Here
The International Comparative Legal Guide to Shipping Law 2015 with contributions from Ms. Khatiya Asvat and Ms. Nadya Price

"This article appeared in the 2015 edition of The International Comparative Legal Guide to: Shipping Law; published by Global Legal Group Ltd
(http://www.glgroup.co.uk/), London.” (please hyperlink www.iclg.co.uk)
Getting the Deal Through - Aviation Finance and Leasing 2015 with contributions from Ms. María de Lourdes Marengo.

Reproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through: Aviation Finance & Leasing 2015, (published in June 2015; contributing editor: Mark Bisset, Clyde & Co LLP). For further information please visit
www.gettingthedealthrough.com
Adding new talents

Ensuring our firm’s commitment for continued growth, we are pleased to announce the addition of new associates and assistant attorneys to strengthen our legal team to guarantee our customers an efficient and timely service.

We welcome Demetrio Rodriguez, Harry Aswani, Jorge Ventre and Michele Hibbert, who with their talent, experience and dedication will join the legal teams in the Practice Areas of Administrative Law, Commercial Law, Immigration and Labor Law, Real Estate and Corporate Law, among others.
This article appeared in the 2014 edition of The International Comparative Legal Guide to: Shipping Law; published by Global Legal Group Ltd, London (http://www.glgroup.co.uk/)
Reproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through – Aviation Finance & Leasing 2014, (published in June 2014; contributing editor: Mark Bisset, Clyde & Co LLP) For further information please visit www.GettingTheDealThrough.com
This article appeared in the 2014 edition of The International Comparative Legal Guide.
New Law To Regulate Spin-Offs As Corporate Reorganization Scheme.
Securities Update: Regulation Of Forex Activities In Panama
Securities Update: Recognized Jurisdictions
Solar Energy Article
AMP Newsletter
This article was first published in Getting the Deal Through – Restructuring & Insolvency 2013, (published in November 2012; contributing editor: Bruce Leonard of Cassels Brock & Blackwell LLP). Reproduced with permission from Law Business Research Ltd. For further information please visit www.GettingTheDealThrough.com
A Practical Insight to Cross-Border Securitisation in 41 Jurisdictions
Tax update: Law 31 of 2011
Panama Chapter RI 2011
PMA Tax Update - Ley 49 - 2009
Offshore Banking Regulations in Panama
Hedge Fund Admin. Roundtable
Article published in Global Property Guide
Panama’s New Limited Liability Corporation Law
Article was first published in Getting the Deal Through – Restructuring & Insolvency 2009
Newsletter Immigration Law
"This article appeared in the 3rd edition of The International Comparative Legal Guide to: Securitisation ; published by Global Legal Group Ltd, London www.iclg.co.uk"

Administrative Law

Telecommunications and Energy

1. Telecommunications

Panama has become a telecommunications hub for the Americas, which has not yet reached its full potential. All of the main fiber optic submarine cables pass through our Isthmus, and substantial investments in recent years in the area of call centers and telecommunications providers demonstrate that Panama’s strategic advantages have attracted important international players, such as Dell, Spherion, Global Crossing, Nortel, among others.

The basic telecommunications sector in Panama was deregulated as of January 2, 2003. The services open to competition are the following:

  • No. 101 Basic Local Telecommunications Services
  • No. 102 Basic National Telecommunications Services
  • No. 103 Basic International Telecommunications Services
  • No. 104 Services for Public and Semi-public Terminals
  • No. 105 Services for the rental of Voice Circuits.

2. Energy

In 1996, the Republic of Panama began to restructure the electrical sector, through the enactment of laws and regulations to promote the development of competition in its activities. The only regulated activities are those, which by their very nature, cannot sustain competition and are open to monopolistic practices. The law contemplates the state's intervention only in cases of abuses of a dominant position.

Inspection and Control: The control, oversight, and inspection of the electric sector are a responsibility of the Utilities Regulation Agency, an autonomous state organization. The Law establishes that the operational budget of the agency be funded through a control, oversight, and inspection fee, charged to suppliers of public electricity services. It stipulates that this fee shall not exceed one percent (1%) of the total invoicing by distributors and generators who sell electricity to major customers.

Concession contracts for hydroelectricity and geothermal electricity generation have a term not to exceed fifty (50) years, and concession contracts for transmission activities have a duration of twenty-five (25) years, but could be extended by the Regulation Entity for a term not greater than the one of the original contract.

Licensing Regime: A license is required for the construction and exploitation of any generation plant other than those subject to the concession regime. The licenses are issued by the Regulation Agency after the submission of a request and approval of the Environmental Impact Study by the National Environmental Authority (ANAM). The licenses are issued for a maximum term of 40 years.

Regulated and Non Regulated Activities: Generation is a competitive activity and thus is not regulated. Distribution and transmission are classed as services in which monopolistic supply will prevail due to the need for significant economies of scale. Commercialization is a potentially competitive activity; nevertheless, it is awarded in conjunction with distribution concessions. The Regulation Agency is responsible for establishing the criteria, methodology and formulas to establish the rates subject to regulation.

Maximum Permitted Income: The Regulatory Entity sets a Maximum Permitted Income for each four-year rate period for transmission and distribution companies.

Benefits: Generation companies are entitled to all exemptions, advantages or benefits provided in special laws granted or to be granted to other electrical energy generation companies, such as the exemption of all taxes on fuel, plants and equipment. Generation and transmission companies pay real estate taxes only up to a maximum of twenty-five thousand dollars (US$ 25,000) annually, for each real estate property they own.

Restrictions: Generation companies cannot participate, directly or indirectly, in the control of distribution companies, or request new concessions (of hydroelectricity or geothermal electricity) if by doing so they supply, either directly or indirectly, over twenty-five percent (25%) of the electricity consumed by the national market. This percentage could be increased when deemed justified by competition conditions in the electricity market. Distribution can be conducted in conjunction with generation and transmission activities only in isolated systems (those with a maximum demand of up to 50 MW), and if the direct or indirect participation in the control of generation plants does not exceed 15% of the demand supplied in its concession zone.

Distribution companies cannot request new concessions if by doing so they supply either directly or indirectly, through the stock control of other distribution companies or other means, over 50% of the number of total customers in the national market. The Regulatory Entity may authorize that this percentage be exceeded.

Initial Contact


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