March 28, 2023
Panama announces major changes in work permit regulations effective April 1
On April 1, Panama’s immigration framework will undergo major changes, including a restructuring of work permit categories, updated application processing times and new conditions for filing extension applications. Beginning April 1, eligible foreign nationals will be able to apply for work permits under several categories including local workforce, labor code, special laws and temporary workers. The new work permit categories are expected to increase Panamanian organizations’ access to foreign skilled labor. Companies may be required to undertake comprehensive reviews of their hiring/onboarding policies and processes to ensure they comply with applicable conditions (e.g., quotas, notification requirements).
A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.
Full text of Tax Alert