Bill 724.

Summary.

Article 1 proposes approving in full Addendum No. 1 to the agreement between the State and the City of Knowledge Foundation (Fundación Ciudad del Saber) for the establishment and development of the City of Knowledge. Decree Law No. 6 of February 10, 1998, approved that agreement. The addendum states that the agreement has no expiration date and was endorsed by the Office of the Comptroller General of the Republic (Contraloría General de la República) under Article 280 of the Political Constitution (Constitución Política). It also records its approval by the Legislative Assembly (Asamblea Legislativa), now the National Assembly (Asamblea Nacional), and the favorable opinion of the Cabinet Council (Consejo de Gabinete) in Cabinet Resolution No. 96 of September 15, 2026. It identifies the foundation’s address in Panamá province, Panamá district, the corregimiento (district) of Ancón, Calle Luis Bonilla, Clayton.

As background, the addendum recounts that the fifth clause established exemptions for the foundation and entities operating for the City of Knowledge’s purposes. It states that the initial 25-year term ended on February 12, 2023, and that the benefits have continued on the understanding that the foundation has fulfilled its obligations and that extension follows from the agreement. It also records the actions of the Ministry of Economy and Finance (Ministerio de Economía y Finanzas), the Ministry of the Presidency (Ministerio de la Presidencia), and the Directorate General of Revenue (Dirección General de Ingresos) concerning verification of contractual compliance, authority to recognize the extension, and oversight of exemptions.

The addendum’s second provision replaces the fifth clause. It proposes an additional term for the foundation and entities established for the project’s purposes from February 13, 2023, through February 12, 2048, renewable for periods of equal duration if the foundation meets its contractual obligations. The clause covers exemptions from import taxes, contributions, fees and duties on machinery, equipment, furniture, vehicles, devices and supplies needed for the project. Goods imported under an exemption must remain in the project area and may be sold or transferred only with the State’s prior written authorization, unless the applicable charge is paid on the basis of the goods’ value when sold or transferred. Relevant information must be entered on the customs declaration and assessment form for foreign trade statistics.

The proposed clause also exempts necessary services and goods acquired for the project from the Tax on the Transfer of Movable Goods and the Provision of Services (ITBMS), the foundation’s real property from property tax, and transfers of funds abroad for project purposes from applicable charges. Innovative companies in technology parks that produce, assemble or process high-technology goods, or provide comparable services, would receive exemptions from direct taxes and other national charges on the specified operations and purchases carried out in designated project areas. Their capital would be exempt from national direct taxes, including patent or license taxes. Companies must apply for these benefits and meet applicable statutory requirements. An advisory committee of public officials, businesspeople, academics and researchers would provide an opinion on the profile of companies seeking to locate in the Technology Park.

The City of Knowledge Foundation must also send the Directorate General of Revenue within the Ministry of Economy and Finance an updated list of affiliated companies seeking tax exemptions. The list must contain each company’s taxpayer registration number, contact information and a mechanism for timely notice when a company joins or leaves. The clause refers to submission before the close of the relevant fiscal year and during the first 30 days of the following fiscal year. The foundation must also report and document the beneficiary companies’ economic activities in detail.

The third provision establishes a commission to review the agreement and, if it considers this necessary, propose contractual amendments and submit a bill regulating the special regime. The Ministry of the Presidency would chair it, with representatives of the Ministry of Economy and Finance, the Ministry of Foreign Affairs (Ministerio de Relaciones Exteriores), the Ministry of Commerce and Industries (Ministerio de Comercio e Industrias), the National Customs Authority (Autoridad Nacional de Aduanas), the City of Knowledge Foundation, and the National Secretariat for Science, Technology and Innovation (Secretaría Nacional de Ciencia, Tecnología e Innovación). It would have nine months from completion of the addendum and its publication in the Official Gazette to submit a proposal if warranted. The remaining contractual clauses would retain their validity; the addendum would require approval by the National Assembly and endorsement by the Office of the Comptroller General of the Republic. Articles 2 through 4 designate the proposed law as serving a social interest, give it retroactive effect to February 13, 2023, add to Decree Law No. 6 of February 10, 1998, and set commencement on promulgation. The provisions could concern technology companies, academic institutions, research centers, and organizations involved in education, innovation and foreign trade.