Draft bill 453.

Summary.

The draft bill would regulate platforms that intermediate delivery, courier and on-demand passenger transport services in the Republic of Panama. It would cover platforms operated by domestic or foreign persons regardless of where they were incorporated, while excluding e-commerce platforms that do not intermediate services performed personally. It defines digital platform, operator, digital platform worker, user and management algorithm. The relationship between a worker and an operator would be presumed free of legal subordination, although an ordinary employment relationship could be declared when the elements of subordination under the Labor Code (Código de Trabajo) are present. Use of technology or algorithms alone would not establish subordination.

Platforms would have to register with the Government Innovation Authority (Autoridad de Innovación Gubernamental) and obtain a license after showing compliance with legal, tax and safety requirements. Foreign platforms would need a legal representative domiciled in Panama. Digital platform workers would form a special category of independent worker. They could connect and disconnect freely, accept or reject assignments and use multiple platforms. They would be entitled to clear information on rates and payments, a human support channel, protection against arbitrary blocking, mandatory insurance and access to their performance history. Platforms would disclose their assignment and assessment criteria and reasons for blocking. Blocking a worker would require prior notice, an opportunity to respond and a reasoned decision.

Platforms would provide accident coverage, with minimum amounts set by regulation. Workers would be subject to mandatory enrollment in the Social Security Fund (Caja de Seguro Social). The bill would create the Social Protection Fund for Digital Platform Workers (Fondo de Protección Social para Trabajadores de Plataformas Digitales), attached to MITRADEl and financed by 1 % of gross commissions, for social support, training and supplementary coverage. It would operate as a special account of the National Treasury (Tesoro Nacional). Platforms would also disclose the price, estimated time and service provider’s details; implement biometric verification, geolocation and emergency assistance; comply with national data protection and digital security rules; and refrain from algorithmic discrimination. On-demand passenger transport would remain subject to existing rules, including the applicable executive decree.

For tax purposes, platforms would comply with the Tax Code (Código Fiscal). Income generated in Panama would be taxable, and platforms would collect and declare the applicable tax, act as withholding agents, pay a 0.5% contribution on gross commission income generated in the country, issue electronic invoices and report transactions periodically. The Ministry of Labor and Labor Development (Ministerio de Trabajo y desarrollo laboral), the National Authority for Government Innovation (Autoridad Nacional para la imnovación Gubernamental), the Panama Land Transit and Transport Authority (Autoridad de Tránsito y Transporte Terrestre de Panamá) and the General Directorate of Revenue (Dirección General de Ingresos) would conduct coordinated oversight. Noncompliance could lead to fines or license suspension or cancellation. The Executive Branch would issue implementing regulations within 120 days, and platforms would have 6 months to comply. The provisions could also concern workers, users and operators in the delivery, courier and on-demand passenger transport sectors.