Panamanian Registry of Ships Supporting Ship-owners/Operators’ Financial Efficiency Panama Maritime Authority Consulate General Of Panama 24-06-2015 Panama Maritime Authority

Panama Maritime Authority Economic Incentives Scope Vessels & MODUs New buildings Tonnage Second hand Age Returning vessels 24-06-2015 Panama Maritime Authority

Panama Maritime Authority Economic Incentives Applies (%) Registration fee Annual tax** Consular annual fee Casualty investigation fee** Inspection fee** Fee of 0.03% per each net ton** ** Only New Buildings *** Important Economic Groups are dealt with case by case 24-06-2015 Panama Maritime Authority

Panama Maritime Authority Economic Incentives Conditions Registration up to December 31st 2015 New Buildings > 10,000 GRT Shipyards Hong Kong People’s Republic of China Singapore South Korea Republic of China (Taiwan) Philippines Indonesia Vietnam France Germany Norway Holland Italy Second hand > 10,000 GRT 15 yrs old 10 yrs old 24-06-2015 Panama Maritime Authority

Panama Maritime Authority Economic Incentives Terms Discounts New Buildings First Three (3) yrs. Second hand > 10,000 GRT First two (2) yrs. 15 yrs. old at registration 10 yrs. Old PSC References two (2) prior Registration, or Renewal UN Security Council References At lease five (5) yrs. Of Registration 24-06-2015 Panama Maritime Authority

Additional Supporting Activities Administrative Legal representation at Panama City (compulsory) Consulates Network Speed up proceeding for registration Temporary (provisional) Permanent (full term) Technical Regional Maritime Safety Offices (SEGUMAR) Documents Certificates Regional Documentation Offices Certification of Seafarers 24-06-2015 Panama Maritime Authority

Vivianne Almario Consulate General Of Panama Flag State Incentives: The Panama Perspective Supporting Ship-owners/Operators’ Financial Efficiency Advantages of the Panama Ship Flag Vivianne Almario Consulate General Of Panama

Member of the Council category A in the IMO. Signatory of the majority of conventions protocols and codes. Uniformity of costs by law. Convenient preliminary registration of ownership, titles and mortgages, especially for closings cases. Advantages in the mortgage contracts.

INCENTIVES Speedy and reputable corporation registration. Corporation shareholders can be of any nationality. No nationality restrictions for registry. No nationality restrictions for manning . Corporations only have to pay taxes for incomes derived within the Panamanian territory.

INCENTIVES Panama has a territorial taxation system (Article 694 of the Tax Code) Income is deemed to be from a foreign source and is therefore exempt from taxation. Additional category Exempt income, earned from certain activities conducted inside Panama. Income derived through international commerce of ships under the Panamanian flag is exempt from tax. 11/8/2018

Single sole enrolment charge for yachts. INCENTIVES No requirement for re-survey if ships possess valid safety management certificate and tonnage certificates. Vessels under construction may also apply for the provisional registration and radio call letters. Single sole enrolment charge for yachts. 11/8/2018

CONCLUSIONS A period of challenges. The Panamanian professional community offers ship owners a broad array of world class maritime services, including legal, accounting, banking, finance and insurance.  Strict regulatory legal framework. Commitment to maritime safety, compliance with international agreements and environmental sustainability along with a world renowned service.

Additional References General Info/Documents PMA Website http://www.amp.gob.pa/newsite/spanish/home_mirror.html SEGUMAR Website http://www.segumar.com/ Merchant Marine Circulars (MMC-298) http://www.segumar.com/circulars/ Contact Info Panamanian Consulate London, UK Ph. +44 (0) 207 409 2255 Email shipping@panamaconsul.co.uk 24-06-2015 Panama Maritime Authority