An expanding economy has permitted monetary extension lately, determined by record horticultural generation. Agriculture is so imperative to Paraguay that the decision party proclaimed amid the 2018 race that they would not raise charges, as the homestead sector is so urgent.

It is additionally one of the biggest net exporters of clean energy on the planet, the biggest exporter of natural sugar, and the 6th biggest maker of soybeans. This is an economy prepared for the up and coming generation of manageable business.

Be that as it may, Paraguay isn’t only a farming country; it’s turned into a favoured goal for maquila administrations, a spot for manufacturing plants that import and amass obligation free segments for the fare. These administrations permit plant proprietors to exploit minimal effort work and just pay obligation on the esteem included parts, causing the Paraguay charge environment to happen to enthusiasm to worldwide organizations hoping to exploit these chances.

 

Investment Incentives

60/90 act and its resulting amendments allow, under specific requirements and conditions, different duty incentives for foreign investments:

  • Exemption of assessments for the fuse of organizations.

  • Full exclusion from traditions obligations for capital merchandise legitimately connected in the industrial or farming creation cycle.

  • Withholding charge complete exception on the repayment of advances surpassing USD 5m.

  • Exemption from the payment of charges on settlements and payments abroad as premium, commissions and capital amid a concurred term, for investments over USD 5m.

  • Full exclusion from expenses that influence profits and benefits from endorsed ventures, for a term of as long as ten years for investments surpassing USD 5m.

Investments can be as capital (counting credits, and so forth.), equipment, brands, innovation exchanges, and so forth.

The organization in charge of the advancement of foreign investments is REDIEX, of the Ministry of Finance of Asunción. Incentives under Law 60/90 are commonly affirmed inside 45 days of the solicitation.

What’s more, Paraguay has marked a few reciprocal and global investment security arrangements and perceives worldwide discretion.

 

Maquila Program

Maquila is a generation framework through which organizations situated  in Paraguay can create merchandise and ventures to be sent out, for the benefit of a mother organization found abroad. Maquila organizations can profit by an entirely positive duty routine:

  • 1% Income Tax.

  • Exemption from VAT payment.

  • Suspension of import duties.

  • Exemption from duties on settlements of salary and profits abroad.

Notwithstanding other extra duty exclusions, for example, the exception of expenses on documents and acts, consular charges, half port and aeroplane terminal duties, assesses on credits, charge on licenses, civil expenses, among others.

Any regular or legitimate individual, national or foreign, may profit by the program in a business structure. The undertaking must be affirmed by the National Council of Export Maquiladora Industries (CNIME).

 

Organized/Free commerce Zones

Right now, in Paraguay, there are sans two zones in Ciudad del Este, where both national and universal organizations can work. The fundamental target of these free zones is the development of exercises for the fare, even though the activities inside the nation are permitted. The organizations situated in these free zones appreciate a few duty exceptions notwithstanding an uncommon expense routine with a pay charge rate of 0,5%.

 

VAT & Excise

The business charge rate additionally remains at 10% in Paraguay, and its income is an imperative wellspring of pay to the Paraguay government. There is a decreased VAT rate of 5% for pharmaceuticals, the “fundamental family bushel” and farming, plant and organic product items, just as property rentals. Fares are not exposed to VAT.