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The Republic of Panama has just passed a new Shipping Act, Law No. 57 of August 8th, 2008, which came into force on February 2009, which compile, in a single statute, all the procedures for the registration of vessels in Panama’s Shipping Registry. Before the passing of this law, the procedure concerning the registration of vessels were scattered in different statutes, laws and regulations. This law also contains new measures and incentive for the optimization of Panama fleet, in an effort of Panama Registry to attract younger vessels, and also incentive for those ship owners that have been loyal to Panama Registry by grating discounts on the registration fees and taxes. These incentives are the following:

• New Fleet Optimization and Maintenance Incentive Measures (Discounts).

  The following special tariff will be applied to those vessels that at the time of their registration have the following conditions:

  • New building vessels with a gross registered tonnage (GRT) lower than 30,000 tons will be granted a 30% discount in the registration fee, annual tax and annual consular fee applicable on their first year of registration; a 20% discount on the annual tax and annual consular fee on the second year and a 10% discount on the annual tax and annual consular fee on the third year.
  • New building vessels with a GRT higher than 30,000 but lower than 100,000 will be granted a 40% discount in the registration fee, annual tax and annual consular fee applicable on the first year of registration; a 25% discount on the annual tax and annual consular fee on the second year and a 15% discount on the annual tax and annual consular fee on the third year.
  • New building vessels with a gross registered tonnage higher than 100,000 GRT will be granted a 50% discount in the registration fee, annual tax and annual consular fee applicable on the first year; a 35% discount on the annual tax and annual consular fee on the second year and a 20% discount on the annual tax and annual consular fee on the third year.
  • For vessel with five years of age or less and with less than 30,000 GRT shall be granted a 20% discount in the registration fee, annual tax and annual consular fee on the first year; 10% discount in the annual tax and annual consular fee on the second year and a 5% discount on the annual tax and annual consular fee on the third year.
  • For vessel with five years of age or less and with GRT higher than 30,000 but lower than 100,000 shall be granted a 30% discount in the registration fee, annual tax and annual consular fee on the first year; 15% discount in the annual tax and annual consular fee on the second year and a 10% discount on the annual tax and annual consular fee on the third year.
  • For vessel with five years of age or less and with GRT higher than 100,000 GRT shall be granted a 40% discount in the registration fee, annual tax and annual consular fee on the first year; 25% discount in the annual tax and annual consular fee on the second year and a 15% discount on the annual tax and annual consular fee on the third year.
  • For vessels registered in Panama, regardless of their age, tonnage, type, which prove not to have been detained by any Port State Control in a period of 24 months shall be granted a 15 % discount on the annual tax and annual consular fee applicable on the next year as long as the vessel does not have the right to other discounts.
• Fleet Discounts

  The following discounts will be granted to those vessels that, at the time of their registration in the Panama Shipping Registry, have the following conditions:

  • A 20% discount in the registration fee, annual tax and annual consular fee to those vessels that belongs to the same “economic group” or a ship-owner that has, at the time of its registration, between 5 to 15 vessels registered in Panama.
  • A 35% discount in the registration fee, annual tax and annual consular fee to those vessels that belongs to the same “economic group” or a ship-owner that has between 16 to 50 vessels registered in Panama.
  • A 60% discount in the registration fee, annual tax and annual consular fee to those vessels that belongs to the same “economic group” or a ship-owner that has over 51 vessels registered in Panama.
  • A 25% discount on the registration fee, annual tax and consular fee when three or more vessels, with a GRT of less than 30,000, owned by the same ship-owner, or being part of the same economic group, are simultaneously register in Panama,  or within the same calendar year.
  • A 40% discount on the registration fee, annual tax and consular fee when three or more vessels, with a GRT higher than 30,000 but lower than 100,000, owned by the same ship-owner, or being part of the same economic group, are simultaneously register in Panama,  or within the same calendar year.
  • A 60% discount on the registration fee, annual tax and consular fee when three or more vessels, with a GRT of 100,000 or over, owned by the same ship-owner, or being part of the same economic group, are simultaneously register in Panama,  or within the same calendar year.
• Deferred Payment of Taxes and Annual Fees

  The payment of taxes and annual fees may be deferred, upon authorization from the Shipping Registry, and settled during the course of the fiscal year, according to a special schedule, without any surcharge, if the ship-owner requesting such deferment complies with the following criteria:

  • That the vessels are owned by the shame ship-owner or belong to the same economic group.
  • That the number of vessels owned is at least 15 or have a combine GRT of over 150,000.
  • That the special schedule granted to pay the annual taxes and fees does not exceed the respective fiscal period

Information kindly provided by our partners Messrs TAPIA, LINARES & ALFARO, Panama