INTERNET LAW - The Fostering Of Online Gambling In Panama - IBLS INTERNET LAW (subscr

[I Heart Gambling Online]

The process of creating a tax haven in Panama began in 1916. In response to a legal regime that is prohibitive of online gambling, Panama has adopted a liberal legal and fiscal framework to allow online gambling entrepreneurs into its pre-existing tax-haven.
Taxation in Panama is governed by the Fiscal Code. The concept of territoriality was introduced by the first Fiscal Code in 1916. According to that concept, only operations carried out within Panama are taxable. Funds may be freely transferred in and out of the country. The Online Gaming Act was adopted to attract foreign investment through gambling entrepreneurs seeking a tax haven to establish operations.

Why are US-based entrepreneurs off-shoring their gambling activities to Panama?
Close to several major US cities, Panama offers a sophisticated infrastructure and the human resources to establish gambling operations at half the cost of the United States. The telecommunications infrastructure in Panama is one of the best in the world, competing with cities like Los Angeles and New York. State-of-the-art telecommunications facilities and services are made available at very competitive prices. Five major fiber optic networks cross the Isthmus of Panama. Panama City has several fiber optic metropolitan networks deployed as well as several mission-critical data centers. Panama possesses an 80% literacy rate and a large supply of bilingual certified engineers.

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