The Cabinet Council approved Cabinet Resolution No. 123 on October 20, 2026, published in Official Gazette No. 30646 of October 30, 2026. The resolution authorizes the Minister of Culture, María Eugenia Herrera, to propose to the National Assembly the bill "Que deroga la Ley 16 de 2012, se actualiza el Régimen Especial de la Industria Cinematográfica y Audiovisual y se modifican otras disposiciones" (repealing Law 16 of 2012, updating the Special Regime for the Film and Audiovisual Industry and amending other provisions).

Its article 1 contains the authorization; article 2 orders an authenticated copy of the resolution to be sent to the minister so she can proceed, and article 3 provides that it takes effect upon promulgation. The legal basis is item b of numeral 1 of article 165 of the Constitution, which allows ministers of State to propose laws with the authorization of the Cabinet Council. The resolution does not reproduce the text of the bill or specify which incentives would be kept, expanded or eliminated.

The law to be repealed is Law 16 of April 27, 2012, which establishes the special regime for the film and audiovisual industry. Its article 1 sets as its purpose fostering the development of that industry, protecting and preserving Panama's audiovisual heritage and establishing a special regime that grants incentives and benefits to those engaged in the activity. Its article 2 extends its application to the entire national territory, including special areas, and its article 3 declares the industry of social, economic, cultural and educational interest.

For production companies, post-production houses, distributors, exhibitors and service providers to foreign shoots, a change of regime could alter investment conditions in the sector. The bill's title suggests a comprehensive overhaul rather than a targeted adjustment, so replacing the 2012 law could change current benefits, the requirements to access them or the institutional structure that administers them. That scope can only be determined once the text is submitted and its provisions are known.

The effect depends on the legislative process. The bill must be formally submitted to the National Assembly, receive a number, be assigned to the relevant committee and pass three debates before being signed and published. Until then, Law 16 of 2012 remains the applicable framework for film and audiovisual activity, and companies in the sector keep the conditions that law establishes.

Nexo Capital will follow the submission of the bill and the publication of its text.

Research assisted by Sentinel, with editorial verification of official sources. Discover Legislat.ai