A recent press release from the IRS announced that companies holding conventions, conferences, or seminars in Panama can write off the related expenses from their U.S. taxes. Specifically, the release states: ”Section 274 (h) of the Internal Revenue Code limits deductions for expenses incurred in connection with a convention, seminar, or similar meeting held outside the North American area. This revenue ruling contains an updated list of all geographical areas currently included in the North America area for purposes of section 274 (h).”
Later in the document, it speaks specifically to Panama: ”Panama is a beneficiary country, and no finding is in effect by the Secretary of the Treasury that the tax laws of Panama discriminate against conventions held in the United States. Therefore, Panama is included within the North American area under section 274(h)(6) as of April 18, 2011.”
This is great news for the already strong economy in Panama. It means companies who’ve been flying people out to Las Vegas, Orlando, or Chicago have incentive to host their big event in this sunny, tropical country.
Panama saw over a record-breaking two million tourists in 2011, and this incentive should contribute to that number increasing in 2012.