Tier 1 · Forestry incentives
Law 24 of November 23, 1992
"Establishing incentives and regulating reforestation activity in the Republic of Panama." One of the most cited — and most misinterpreted — statutes in Panamanian forestry.
Factual summary
This law was enacted during the Guillermo Endara Galimany administration to incentivize private reforestation in Panama after decades of forest cover loss. Its most well-known provisions — income tax exemption on forestry profits and 100% deduction of forestry investments — belong to articles that were derogated by Law 69 of 2017. The law itself was not derogated in its entirety: articles on the Forest Registry, definitions and administrative procedures remain in force.
Public confusion about the status of Law 24 stems partly from its continued use in forestry marketing materials and from its coexistence with later laws (Law 1/1994 and Law 69/2017) that reorganized the fiscal framework without derogating Law 24 in full.
Main changes after 2017
Article 6 — DEROGATED
Derogated by Article 26 of Law 69 of October 30, 2017. This article established part of the original regime of direct incentives linked to Forest Registry registration.
Article 7 — DEROGATED
Derogated by Article 27 of Law 69 of October 30, 2017. Article 7 contained the core income tax exemption on profits from registered forest plantations — the most cited provision as "Law 24 incentive" in the sector.
Remainder — in force
Provisions on Forest Registry, definition of reforestation, competent authority and administrative procedures remain in force except for specific modifications introduced by Law 1/1994 (Forestry Law) and subsequent regulations.
Verified source: Text of Law 69 of 2017, Articles 26 and 27 — available at National Assembly LEGISPAN.
What sector actors say
— Reforestation with fiscal incentives, Panamá América, May 14, 2009.
The Panamá América article (from 2009) uses "derogated" imprecisely — at that time there had only been specific modifications; formal partial derogation of Articles 6 and 7 occurred in 2017. The ambiguity of public language explains much of the current confusion among forestry operators and prospective investors.
Complete analysis · Law 24 of 1992
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Official sources
Original text: National Assembly · Official Gazette No. 22,172 of November 27, 1992 · available via FAOLEX (FAO) and OAS · DSD Environmental Services.
Regulation: Executive Decree 89 of June 8, 1993 · Executive Decree 170 of 1993 (Income Tax).
Modifications: Law 69 of October 30, 2017 (Reforesta Panamá Program) — Articles 26 and 27 derogate Art. 6 and Art. 7 respectively · Full text, Assembly LEGISPAN.