Panama Pacifico:

The ideal location for your company in Latin America

An initiative of the Panamanian Government under theadvisory of the World Bank, The old Howard Air Forcebase was to become a development project to attractforeign investment & create high quality jobs.

Mixed use Special Economic Zone. (Comercial,Industrial, Residencial), with a total area of 2005hectares.

Created by Law 41 of 2004, which establishes the legalframework & contemplates the incentives (fiscal, labor,customs, migration etc.) that will be in place forcompanies that open operations within the area.

40 Year contract with Master Developer (London &Regional Panama), creating a Public-Private model.

Administered & Operated by Agencia Panama Pacifico.(Goverment Agency)

PANAMA PACIFICO IS …

BUSINESS SERVICES INDUSTRIAL, MANUFACTURING & LOGISTICS

RESIDENTIAL, COMMUNITY SERVICES & FACILITIES

60 to 12,000 m² (26 Hectares) 500 to 10,000 m² (88 Hectares)

Town Center & Residential ProjectsPanamerica Corporate CenterInternational Business Park

BUSINESS COMMUNITY

Regional Headquarters Back Office Offshore services Call centers Data processing Software development

Light high-tech manufacturing Logistics operations Imports / exports Vessel services (maintenance, repairs

etc.).

Some Business Services

5 Housing Projects Shopping Malls Lifestyle Retail Center Academic Park Parks & Trails Sports & Recreation Park

Panama Pacifico International Airport

Concessetioned to Tocumen Airports

20,000 Units

INTERNATIONAL BUSINESS PARK

INTERNATIONAL BUSINESS PARK

140+ COMPANIES

26 HECTARES

FUTURE PLAN: 16 CLASS A OFFICE BUILDINGS

8 BUILDINGS 100% DELIVERED

URBAN PLANNING BASED ON

INTERNATIONAL BEST PRACTICES

BUSINESS CLUSTERS

Business Services

Logistics

Manufacturing

Maritime-Aviation

IndustryServices

Retail

42%

19%

19%

15%

5%

PANAMERICA CORPORATE CENTER

LOGISTICS-INDUSTRIAL PARK

100+ COMPANIES OPERATING

88 HECTARES

10 CLASS A WAREHOUSES IN OPERATION

BUILT-SUIT SERVICES

BUSINESS CLUSTERS

Logistics

Manufacturing

Business Services

Maritime-Aviation

IndustryServices

45%

27%

14%

14%

PANAMERICA CORPORATE CENTER

TOWNCENTER & RESIDENTIAL PROYECTS

Category 7 airport

Longest runway in Central America - 2,591 x 46 m. International

regional flights (Low Cost)

Private, charter and cargo flight

Center for manufacturing, repair and overhaul of aircraft 178,360m

aircraft parking facility

Onsite customs and immigration

Passenger terminal:

• Room for VIP passengers

• Baggage handling

• Business facilities

• Cafeteria

• Room for charter flight passengers

INTERNATIONALAIRPORT ON SITE

250+ companies, from startups to Fortune 500® multinationals haveestablished operations in Panama Pacifico

9,000+ Jobs generated to date. 40,000 Jobs expected at the end of the project.

On average, 3 new companies join per month

3M Composite Pacifico Ingeniería y Consultoría PP PharmacyPanCo, S.A.

3PL Panama Consultia IT Panama IntelData Technologies Papppa Pizza

AB Network Consultores Urbanos Panama Intercontinental Logistics Penn Accounting and Computer

Advanced Biocontrollers Covidien IP Leather Services Corporation

AFTA - Insurance Services Credicorp Bank IT Lab Panama PIPSA

Agencia de Aduanas Sellhorn CTC Administradora Katya Quintana de Patterson PowerCLUB

Aggreko Cummins King Ocean Internacional de Proyectos y Explosivos

Airpro Componentes Earthwater Technologies Inc. Panama Riba Smith

Albacrome Panama Ecotécnica Agroindustrial KIO Networks Rozo & Co.

Alliance Transport Logistics Edificar Panama Knightsbridge Schools Quality Freight

APC (Asociacion Panameña de EGSA International Quinyx Development

Crédito) El Asador KPMG Scotiabank

Arsenal Industries Escarh de Panama Latam Activos y Gestión Sirenis Premium Travelers

Arturo Araúz Escuela Francesa Paul Gaugin Latin Bikes Skymaxx Corporation

Associated Steamship Agents Eurotools Latinoamérica London & Regional Panama Subway

Atlas Copco Farmacias Arrocha Magen David Academy Suimport Logistics

Avetti Global Services FCC Industrial Mailboxes Etc. Supreme Group Panama

Avon Flavor Infusion Internacional Manantial Química Sushi House

Banco General Forkliftcenter Americas Mapiex International Synergy Global Business Panama

Banistmo Fruteria Deli Metro Service Logistics Telered

Barwil Agencies Garal Bravetek Multimodal Marine TLA

BASF Gateway Transit Limited, Inc. NAAS Panama Transcanal Agency

Biomin Panama GEA Central America Neurologistics, Inc. Trade Service Panama

Bosch Rexroth Group Generali NIPRO Medical Transformer Industries

Boyd Steamship Corporation Gianfranco Agency Norton Lilly International TRUCKSLOGIC

C.B. Fenton & Company Global Cold Chain System Novey Universidad del Caribe

C. Fernie & Co Corporation Nuctech Universidad Tecnólogica de

Cable & Wireless Panama Global Green Logistics NYCO Panama

Cabo Drilling Grainger OnBoard Logistics Valor Technology

Cafe Maritanos Green Ivory International One Stop Shop Vaultmax Global

Canal Supplies Grupo STT Orica Caribe VF Sourcing Latin America

Canal Transit Services Grupo Unidos Por El Canal Osmo Coronado W.R. Grace

Canarias Logística Harbour Shipping Corporation Pacific Hardware Wakefield Beasley & Associates

Cargotec USA Herrenknecht Tunneling Pacific Procurement Services Architects

Casco Safety Hidropana Pan & Canela Wakefield Marine Energys

Caterpillar Hi Tek Marine Panama Aerospace Engineering Ware Malcomb

Citibank Human Consultants Corp. PanamaAmerican Airparts Wärtsilä

Cochlear Latino America Howard Kids Academy Panama Canal Port Service White Bay Trading Corp.

Colvecom Softel Human Diagnostics Panama Customs Brokers Wilford & McKay

Compañia de Seguridad Hydroflo Panama Pacific Logistic Wilhelmsen

y Protección Istmeña Imtech Marine Panama Panamedica Medical Center & Yogen Früz

PANAMA PACIFICO´S INVESTMENT IMPACT

INCENTIVIZED ACTIVITIES

Back Office Services

OffShoreServices

Data Centers Call CentersMultimodal & Logistics

Services

Import &

Re-export

High Tech Manufacturing

MRO´s & Air Craft Services

Maintenance & Repairs of Ships

Ship ServicesFilm Industry

Multinational Regional

Headquarters

One Stop Shop

Special Custom Regime

Tax Incentives Special Immigration Standards

Public Training CenterSingle Registration

Investment Stability Law

Special Labor Regulations

BENEFITS OF ESTABLISHING IN PANAMA PACIFICO

*exceptions and limitations apply

TAX EXEMPTIONS:

TAX INCENTIVIES

Companies that do activities that are incentivized receive, both direct and indirect tax exemptions.

All companies registered in Panama Pacifico recieve indirect tax exemptions.

* Exemption & limitiations do exist

DIRECT TAXES

Income Tax

Dividend & Complementary Tax

Transfer Tax

INDIRECT TAXES

Import Tax

Sales Tax

Export & Re-export Tax

Registration Tax, including industrial and commercial licenses

Real Estate Property Tax

Withholding/Retention Taxes

Stamp Tax

Insurance Premium Tax

Taxes on the storage and movement of fuel or other hydrocarbons and derivatives

Real Estate Property Tax

Withholding/Retention Taxes Stamp Tax

Insurance Premium Tax

Taxes on the storage and movement of fuel or other hydrocarbons and derivatives

ONSITE ONE-STOP-SHOP

• The Panama Pacifico Agency

(APP) deals with all necessary

permits and procedures for

companies moving to and based

in Panama Pacifico

• APP represents over 18

government agencies and offers

a One-Stop-Shop service on

site

• This unique service significantly

lowers the administraIve burden

for companies in Panama

Pacifico

SAVING YOUR COMPANY

TIME AND MONEY

+18 government

agencies

All in

one

location

Services

exclusive to

registered

companies

24/7

customs

Expedited

paperwork

Immigration

onsite

Designed to allow free flow of goods to and from Panama

Pacifico

System based on post-audits of inventories

Automated system

Onsite Customs Office (One-Stop-Shop)

Available 24/7

SPECIAL CUSTOMS REGIME

Favorable regulations

available in Panama

Pacifico:

Special visas for investors and

workers

Visas available for

family members

Expedited procedures for

visas and work permits for

foreigners

Tax-free, one-time importation of any

personal and domestic belongings (up

to USD 100,000)

National Migration Service on-site in

Panama Pacifico´s One Stop Shop

SPECIAL IMMIGRATION STANDARDS

Favorable regulations available

only within Panama Pacifico:

1 2

SPECIAL LABOR REGULATIONS

24/7 operations

allowed

Fixed rates for overtime

(25%) and work

conducted on national

holidays or during

employees’ day off (50%)

3

Flexibility to assign

employees’ day off

Work termination

possible in case of

losses or demand

fluctuations

4

A higher ceiling on the

proportion of workforce

from outside Panama

than in the rest of

Panama

5

Special investor and

worker visas available -

visa benefits also extend

to worker’s immediate

relatives

6

This law provides Investment Stability for onsite companies and is applicable for 10 years from the date of registration.

It includes stability of:

Company tax structure

Company benefits

Municipal taxes for five years

This law was created to protectcompanies investment. If Panamanianauthorities decide to change law 41, in asense that impacts your company in anegative way, you have a 10 year graceperiod, from the date of registration toabbey to the new modification.

Note: Since the creation of Panama Pacificoall the modifications done to law 41 have benefited investors.

INVESTMENT STABILITY LAW

Higher Education Center for Workforce Training (INADEH)

Government's technical training programs for Panama Pacifico: Meeting the educational needs of area businesses Providing educational assistance to develop Panamanians for onsite technical and

professional positions. Specialized Training

Panama’s Technological University

Inter-institutional agreements for training and special training for skilled labor.

PUBLIC TRAINING CENTER

PORT OF CRISTOBAL

MANZANILLO INTERNATIONAL TERMINAL

COCO SOLO

PORT OF BALBOA

RODMAN

AEROPUERTO PANAMA PACÍFICO

PANAMA CITY

STRATEGIC LOCATION

Foreign Direct Investment in Panama by Country of Origin

5,636

4,300

3,306

2,570 2,547

0

1,000

2,000

3,000

4,000

5,000

6,000

Evolution of cumulative FDI flows by source market in million USD

2012 2013 2014

BRITISH COMPANIES IN PANAMA PACIFICO

Company Activity

Knightsbridge School Educational Center (School)

Cable & Wireless Storage, management, and dissemination of digital information of their commercial clients.

CB Fenton & Co. Consultants & Coordinators of ship´s needssuch as paperwork to cross the Panama Canal, refueling, medical services, maintenance & repairs.

Barwil Agencies

London & Regional Master Developer at PP