On 13 May, the Panamanian authorities will implement Executive Decree No. 6 (ED 6), which will introduce further changes to the country’s work permit regulations. ED 6 will replace Executive Decree No. 4 (ED 4), which was implemented in March 2023. On 2 March, the Panamanian authorities implemented ED 4, which amended Articles 17, 18 and 19 of the Labor Code and went into effect on 1 April. ED 4 introduced six new categories of work permits (i.e., Local Workforce, Labor Code Quotas, Special Laws, Humanitarian Protection, Special Conditions and Temporary Workers) and regulations governing the issuance of these permits. The Panamanian authorities approved ED 6 on 13 April 2023.
A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.