Draft bill 72.

Summary.

The draft bill adds Article 3-A to Law 5 of January 11, 2007. It proposes that a Notice of Operation trigger automatic electronic notification of the business’s registration to the relevant Municipal Treasury, for registration purposes, and to the Social Security Fund (Caja de Seguro Social), for the relevant purposes. The notification uses the information in the Notice of Operation, but that information does not automatically establish the business’s municipal classification or assessment. To carry out that process, each municipality must comply with Articles 87 and 88 of Law 106 of 1973. The provision also allows the Panama Emprende system to incorporate new requirements and registrations imposed by special laws for starting or carrying on commercial and industrial activities.

The proposed Article 12-A governs notification when operations cease. Once the holder of a Notice of Operation reports the cessation to the PANAMAEMPRENDE System, the System must automatically and electronically notify the relevant Municipal Treasury and the Social Security Fund. The notification would allow both entities to take measures within their authority to update their records and monitor compliance with applicable tax, municipal, and social security obligations. The proposed mechanism thus covers both the notification associated with a Notice of Operation and the subsequent notification following a cessation report submitted by its holder.

Article 3 states that the bill adds Articles 3-A and 12-A to Law 5 of January 11, 2007. Article 4 directs the Executive Branch (Órgano Ejecutivo), through the Ministry of Commerce and Industry (Ministerio de Comercio e Industria), to prepare and publish the consolidated text of that law within 90 calendar days of promulgation. The consolidated text must bring together the amendments made to Law 5 of 2007 to date and incorporate the bill’s changes in sequence. Its numbering must begin with Article 1. For its preparation and approval by the corresponding executive decree, the bill provides for adjustments reflecting previously approved amendments, additions, and repeals; the exclusion of provisions no longer in force; corrections to cross-references, citations, and concordances; and formal, spelling, and structural adjustments that do not alter the intent or content of the law. Following approval by the Executive Branch, its immediate publication in the Official Gazette (Gaceta Oficial) is required. Article 5 sets the effective date as the date of promulgation.

Given its content, the draft bill concerns the Municipal Treasury, the Social Security Fund, the Executive Branch, the Ministry of Commerce and Industry, and municipalities. It may be relevant to holders of Notices of Operation and to businesses starting, carrying on, or ceasing commercial and industrial activities because of the registration and cessation notifications and their effects on records and oversight.