PODCAST | ELA | Cambios en la normativa migratoria de Paraguay

Nuestro Asociado (Sr.) Manuel Acevedo Scappini, especialista en temas de derecho administrativo participó, junto con nuestra colega Alexandra Aguilar de BLP Costa Rica, de un podcast organizado por Employment Law Alliance (ELA), la red más grande abogados especializados en temas de Derecho Laboral, en el cual tuvieron la oportunidad de conversar acerca de las novedades introducidas por la nueva ley de migraciones paraguaya; la Ley N° 6984/22.

Puedes acceder al contenido de podcast haciendo a través del siguiente link

TAX NEWS December 2022

Executive summary:

NormContentDate
Decree No. 8634The exceptional and transitory regime for the regularization of certain tax debts is extended until June 30, 2023.December 28, 2022
Decree No. 8635Extension until February 28, 2023, of the reduction of the VAT taxable bases applicable to the importation of goods under the tourism regime.December 28, 2022
Decree No. 8676The taxable base of the Selective Consumption Tax ("ISC") for the import of Gas Oil/Diesel Type III is modified until January 31, 2023.January 03, 2023
General Resolution No. 123The Undersecretariat of State for Taxation ("SET") establishes provisions for calculating advance payments of Corporate Income Tax ("IRE") under the general and simple regime.December 9, 2022

More information:

Decree No. 8,634/2022 - Exceptional and transitory regime for regularizing certain tax debts is extended.

Through Decree No. 8,634/2022, the Presidency of the Republic extended the effectiveness of Decree No. 7,086/2022 (the "Decree") until June 30, 2023. The Decree was issued on May 19, 2022, and established an exceptional and transitory regime for those who regularize their tax debts to have the following benefits:

a) 0% moratorium interest rate.

b) Reduction of the fine for tax evasion up to half or up to the legal minimum, whichever is greater.

c) Payment facilities with a lower initial payment and a greater number of installments.

The tax debts eligible for this regime are those that (i) were generated in fiscal periods or fiscal years closed up to December 31, 2020, and (ii) that are in any of the following situations:

  1. Debts consigned in the debt certificates issued by the SET that (i) have the character of firm and enforceable and (ii) are in the process of collection management by the Treasury Attorney's Office ("ABT").
  2. Tax adjustments arising from tax assessments and application of penalties derived from audits, administrative summaries, or appeals for reconsideration which:
    • are pending before the courts; or
    • have the taxpayer's express consent or acquiescence (including those debts in collection proceedings by the SET).

Debts resulting from the filing or rectification of tax returns made by the taxpayer cannot benefit from this regime.

To access the benefit of reducing the fine for fraud, the taxpayer (i) must not have paid the penalty, even partially, and (ii) must submit a request for reliquidation, which the SET will analyze. This benefit also applies to those fines in the administrative or judicial collection.

Taxpayers wishing to avail themselves of the benefits of this regime have time to submit their request to SET or ABT until June 30, 2023, according to the new extended term. In this context, they must pay the total amount of the debt or formalize an installment plan with SET or ABT.

In case of availing of this special regime under the installment payment modality, the taxpayer must make an initial payment of at least 10% of the debt. After that, the remaining amounts of the debt may be paid in up to 36 monthly installments, on which a monthly rate of 0.75% will be applied for the term of the financing.

Exceptionally, and under the condition that the request receives the approval of the Deputy Minister of SET, the taxpayer may achieve an installment payment plan of up to 60 monthly installments if the tax debts, as a whole, exceed the amount of ₲ 1,000,000,000, without considering moratory interests.

Finally, debts originating from payment facilities that have been rendered ineffective or lapsed due to noncompliance by the taxpayer during the effectiveness of the Decree may not be financed again by the regime established therein. In addition, if the taxpayer ceases to comply with the payment facilities plan, the benefits provided in the Decree are null and void.

Decree No. 8,635/2022 - The special regime provided for in Decree No. 8,048/2022, which temporarily modifies the VAT taxable base for importing goods under the tourism regime, is extended until February 28, 2023.

To encourage border trade, the Executive Branch issued Decree No. 8,048/2022 (the "Decree"), which temporarily modified the VAT taxable base applicable to goods under the tourism regime, cited in the annex of Decree No. 1,931/2019. Through this new Decree, the validity of the previous Decree is extended until February 28, 2023.

According to the provisions of the Decree, the VAT taxable base remained at 5% for the goods referred to in the annex of Decree No. 1,931/2019. Thus, the effective rate is as follows:

PeriodTaxable baseEffective rate - VAT 10%Effective rate VAT 5%
From January 1st to February 28th, 20235%0,5%0,25%

Subsequently, as of March 1, 2023, the taxable base of 15% will be applied again for importing goods under the Tourism Regime, as ordered by Article 4 of Decree No. 1,931/2019.

Decree No. 8,676/2023 - The ISC taxable base for importing Type III Diesel/Oil Gas is modified until January 31, 2023.

Through Decree No. 8,676/2023, the Executive Branch fixed, on a transitory basis, the ISC taxable base for the import of Type III Diesel/Oil Gas/Diesel, setting it at ₲3,083.3 per liter until January 31, 2023.

This decree is part of the Government's practice of temporarily fixing presumptive tax bases for Type III Diesel/Oil Gas, Virgin Naphtha, and RON 91 Naphtha, whose last iteration started on February 4, 2022, with Decree No. 6,620/2022, and concluded with December 31, 2022, with Decree No. 8,416/2022.

Thus, as of January 1, 2023, the taxable base of Virgin Naphtha and Naphtha RON 91 is determined as provided for in the ISC regulation annexed to Decree No. 3109/2019, while the taxable base of Gas Oíl/Diesel Type III is determined as provided for in Decree No. 8,676/2023, at least until January 31, 2023.

General Resolution No. 123/2022 - The SET establishes provisions for calculating the IRE advance payment under the general and simple regime.

In the last amendment to Decree No. 3,182/2019, made by Decree No. 7,402/2022, a new method for calculating IRE advances was established. Through General Resolution No. 123/2022 (the "RG"), the SET further regulated this issue.

The RG affects both IRE taxpayers under the General Regime and those under the Simple Regime, for whom the calculation of IRE advances is based on a reference amount that we will call the IRE base.

They are not obliged to pay IRE advances (i) those who have not yet closed their first fiscal year as taxpayers of this tax, nor (ii) those whose IRE base is equal to or less than ₲10,000,000.

During the taxpayer's second and third IRE taxable years, the IRE basis for the advance to be paid in the current year shall be the IRE settled in the previous taxable year before the imputation of payments on account. From the fourth fiscal year onwards, the IRE basis will be the average tax determined in the last three fiscal years before the imputation of payments on account, including the fiscal year being declared. Thus, in the declaration of xx2, the average of xx0, xx1, and xx2 must be taken for the advance payments to be paid in xx3.

The basis for calculating the advance payments will be determined by subtracting from the IRE-base the following items, in order: (i) the withholdings and deductions that were made to the taxpayer in the year declared (xx2), according to its tax return; and (ii) the balance in favor of the taxpayer in the liquidation of the IRE corresponding to the year declared (xx2), which, on certain occasions, could benefit the taxpayer with the duplication of the deduction of withholdings and deductions.

The RG foresees that when the taxpayer's credit balance for the year declared is deducted from the amount of the advances to be paid for the following tax year, this balance is reduced by the amount used against the advances, which, if so, could imply a misappropriation of the taxpayer's credit, since a credit would be offset against another credit (advance payment), instead of against a debit (tax).

If a taxpayer did not file its liquidation in any of the three years to be used for the IRE-base or if its liquidation did not show any tax payable, then the number "0" will be used for those years to perform the relevant calculations. This can be seen in the numerical example of the RG transcribed below:

ConceptAmount
Tax assessed for fiscal year xx2
Tax assessed for fiscal year xx1
Tax assessed for fiscal year xx0
180.000.000
120.000.000
0
Average income tax paid in the last 3 fiscal years
(xx2 + xx1 + xx0) / 3
(180.000.000 + 120.000.000 + 0) / 3
100.000.000
Minus: withholdings and perceptions for the year xx220.000.000
A) Advance to be paid for the following fiscal year (xx3)80.000.000
B) Minus: balance in favor of the taxpayer for fiscal year xx22.000.000
C) Basis for calculating advance installments78.000.000

The installment of each advance payment is determined by multiplying the calculation basis for the advance payment installments ("C" in the table above) by 25% or, in other words, by dividing it by 4:

78.000.000 / 4 = 19.500.000

Each installment must be paid by taxpayers in the first, third, fifth, and seventh month after the due date for filing the tax return, according to the perpetual calendar of General Resolution No. 38/2020, which is for those taxpayers with closing on December 31 and due date of the IRE in April means in May, July, September, and November.

If from the income tax liquidation corresponding to the last fiscal year, it appears that the taxpayer has a balance in its favor ("B" in the table above) that is equal or higher than the amount of the advances to be paid ("A" in the table above), the installment of the advance payment will be equal to "0".

If the taxpayer rectifies the IRE affidavits affecting any of the elements for the determination of the advance payments or files affidavits for previous tax years that were pending, the determination of the advance payments will be recalculated, and the values will be updated in the standardized affidavit and, consequently, in the taxpayer's current tax account.

Finally, the RG approved the use of new versions of forms 500 (v3) and 501 (v2) of the IRE General and Simple Regime, respectively.

These forms will be available from January 1, 2023. They will be used for liquidating the tax corresponding to the fiscal year 2022 and for determining the advance payments for the fiscal year 2023 for those taxpayers with closing on December 31. For taxpayers that close their fiscal year in April or June, the new versions of the forms will be used for the respective 2023 closings and to determine the advance payment of their fiscal year closing in 2024.


Banking & Finance | Otorgamiento de línea d crédito de CAF a Sudameris Bank

Desde Vouga Abogados asistimos a CAF – Banco de Desarrollo de América Latina, en el otorgamiento a favor del Sudameris Bank de una línea de crédito revolvente y no comprometida por hasta la suma de USD 20.000.000.

Los fondos obtenidos por Sudameris Bank serán utilizados para financiar a sus clientes calificados como pequeñas y medianas empresas, que desarrollen sus actividades en sectores productivos de la economía nacional y en especial a aquellos que necesiten financiar operaciones de comercio exterior, capital de trabajo, inversiones en maquinaria y equipos, en eficiencia energética y negocios verdes, y las actividades económicas conexas a la industria del agro.

Entre otros, el rol de Vouga incluyó el asesoramiento a CAF durante la negociación del contrato de línea de crédito con la entidad financiera, así como la asistencia en la redacción de los documentos del financiamiento, en la debida diligencia al banco y el desembolso del préstamo.

El asesoramiento de Vouga fue liderado por el socio Carlos Vouga y el equipo conformado por el asociado senior Georg Birbaumer y los asociados Juan Manuel Ros, Paula Lovera y la paralegal Teresa Sosa.

Para más información con relación a esta operación u otros temas relacionados con Banking & Finance, por favor póngase en contacto con Carlos Vouga (cvouga@vouga.com.py) o Georg Birbaumer (gbirbaumer@vouga.com.py).

New regulation on offences and penalties in forestry matters

On September 8, 2022, the Executive issued the Decree No. 7774/2022 (the “Decree”) that regulates articles 53, 54 and 60 of Law No. 422/1973 (the “Forestry Law”), specifically with regard to offences and penalties.

The Forestry Law includes a list of offences and penalties (§§ 53-54), and some basic application rules, such as the five-year statute of limitation period, the enforcement authority, the need for summary proceedings (art. 56/59 -60). The Decree seeks to provide greater detail to allow the application of the regime of offences and penalties by the enforcement authority, the National Forestry Institute (the "Infona").

Regarding the offence’s regime, the Decree classifies them as very minor, minor, medium, serious and very serious (§ 3), and then incorporate an extensive table with seventeen typified conducts (§ 6), including the six specific infractions already foreseen in the Forest Law. As can be seen from said table, the same type of offences can be classified with different degrees depending on the case, including offences varying between very minor and very serious.

To rate offences, the Decree incorporates two "assessment methods", depending on whether or not there is a change in land use, fires or land clearing (§ 7):

(i) If yes, the first step is to set the base amount of the fine according to the number of affected hectares, at a rate of ten wages per hectare in the Región Occidental and twenty wages per hectare in the Región Oriental. Then, the mitigating and aggravating factors that may or may not take place are weighed; such as the severity of the damage caused, possibility of recovery, existence of an approved plan, collaboration with the investigation and recidivism (five years from the last firm penalty).

(ii) If there is no land clearing, it starts from a very minor penalty to reach then a final assessment after considering these indicators: damage to the legal order, intentionality, accumulation of offences within the succession of illegal conducts, recidivism, and the value of the resulting forest products and by-products.

Turning to the penalty regime, the Decree implies that Infona will apply fines in all cases, varying the amount of the fine according to the degree of the infraction. Ascending up to 10,000 minimum wages (currently PYG 980,890,000) (§ 5), in line with the cap set by the Infona’s organic charter (Law 3464/2008, § 9(s)). According to the Decree, Infona may additionally apply the other types of penalties set forth in the Forestry Law, depending on the nature of the infraction. Such penalties are confiscation, suspension of permits and disqualification for activities for up to five years, all of which are also provided for as "actions" in the Decree (§§ 4/6).

Regardless of the penalty imposed, the Decree states that the offender must rebuild the protected forests and mandatory minimum forestry reserves affected by the illegal conduct (§ 6 in fine). in fine).

Finally, the Decree provides for some acts that are not penalised, including illegal acts by third parties that are duly reported to the authorities and changes in land use aimed at fighting fires appropriately.

The Decree replaces another relatively recent regulation of 2020, reflecting the Executive's interest in improving the application of penalties for violations of forestry regulations. Like any punitive regulation, it will eventually be subject to legality scrutiny by the courts.


Article prepared for The Legal Industry Reviews, Edition N° 2, Paraguay, by Rodrigo Fernández, you can consult the complete review here.

Banking & Finance | Otorgamiento de línea de crédito de CAF al Banco Nacional de Fomento

Desde Vouga Abogados asistimos a CAF – Banco de Desarrollo de América Latina, en el otorgamiento a favor del estatal Banco Nacional de Fomento de una línea de crédito no comprometida por hasta la suma de USD 50.000.000. 

Los fondos obtenidos por el Banco Nacional de Fomento serán utilizados para financiar a sus clientes calificados como micro, pequeñas y medianas empresas en la mitigación de los efectos de la crisis ocasionada por la pandemia del Covid-19 y apoyar el proceso de recuperación de la economía paraguaya. 

Entre otros, el rol de Vouga incluyó el asesoramiento a CAF durante la negociación del contrato de línea de crédito con la entidad estatal, así como la asistencia en la redacción de los documentos del financiamiento, en la debida diligencia al banco y el desembolso del préstamo. 

El asesoramiento de Vouga fue liderado por el socio Carlos Vouga y el equipo conformado por el asociado senior Georg Birbaumer y los asociados Juan Manuel Ros, Paula Lovera y la paralegal Teresa Sosa. 

Para más información con relación a esta operación u otros temas relacionados con Banking & Finance, por favor póngase en contacto con Carlos Vouga (cvouga@vouga.com.py) or Georg Birbaumer (gbirbaumer@vouga.com.py). 

Maquila and Free Trade Zone In Paraguay

Vouga Abogados 1

Paraguay offers different investment incentive regimes, which have been used by local and foreign investors, including to a large extent Brazilian capital from numerous sectors that lands in Paraguay for different purposes. This article provides the reader knowledge regarding the two main tax regimes for export markets available in Paraguay: the maquiladora export industry (regulated by Law No. 1064/1997) and free trade zones (regulated by Law No. 523/1995). A brief analysis of both regimes is presented below.

     I.         Free Trade Zones

Under the free trade zone regime, it is possible to create areas within Paraguayan that do not form part of the Paraguayan customs territory. The latter must be understood as the territory in which the same tariff regime and economic restrictions are applied to imports and exports, as defined in both article 2 of Law No. 523/1995 and the article 3(1) of the Paraguayan Customs Code.

An individual or an entity acquires the status of user of a free trade zone and, therefore, the right to operate there, by virtue of a contract entered with a free trade zone concessionaire.2 The execution of this contract is preceded by the pertinent application submission from the requesting user, including the respective contract template, investment project and other requirements set forth by the concessionaire in the Internal Regulation of the Free Trade Zone.3.

Industrial activities are among those allowed to free trade zone users, i.e., manufacturing goods intended for export as a result of the transformation within the free trade zone of raw materials or semi-finished products. The free trade zone regime may be also used for activities by the regulation as commercial (warehousing, assortment, classification, handling, blending) as well as some types of services authorised by the Executive Power.4.

The free trade zone regime is being used for the development (from the construction phase) of large industrial plant projects to produce biofuels and cellulose, with investments around USD 1 billion and USD 3.2 billion, respectively.5The successful implementation of these projects will imply unprecedented milestones for the free trade zone regime and for the country in general.

a. Tax Regime

The activities allowed to users that are carried within the free trade zone, as well as the profits obtained by such users are exempt from all national, departmental, or municipal taxes, except for a single tax of 0.5% on the value of the goods exported to third countries from the free trade zone, named "Free Trade Zone Tax", which is determined and paid upon formalisation of each export clearance6.

This means that the entry of goods into the free trade zone is carried out free of customs and internal taxes, since the free trade zone is not part of the Paraguayan customs territory.

The special tax does not apply to income from sales that users carry out from the free trade zone to the Paraguayan customs territory, which are taxed by the corresponding income tax in force in Paraguay, whose rate is currently 10% on net income7.

b. Obligations

Users must comply with the legal requirements applicable to merchants, proceed with registration before the corresponding national registries, keep accounts separately from any other activity they carry out outside the free trade zone and have a permanent electronic inventory of their goods, merchandise, and raw materials8Likewise, they must add to their company name the expression "User of Free Trade Zone”9. The declaration of bankruptcy and the inhibition of assets are incompatible with the character of free trade zone user10.

Users must also invest the capital stated in the respective application and develop the agreed activities. This implies the start of the projected investment in a period not exceeding one year, counting from the execution of the contract with the concessionaire. Activities must begin its course within a period not exceeding two years, counting from the date of the contract, except in extraordinary cases that must be justified when requesting the exception11.

Also, users must timely pay the agreed price, as well as the common expenses and other services to be used. In addition, users must use the property and premises exclusively to the development of the activities authorized in the contract, and hire a third-party liability insurance, covering all risks arising from their activities within the free trade zone, including work accidents, as well as on buildings and facilities used in their activities12.

Users must also allow access, during working hours, to the concessionaire or whoever it designates to carry out inspections throughout the property and buildings, as well as respect the operating hours of the free trade zone and dispositions regarding the transit of people and vehicles set forth by the concessionaire. In addition, users must comply with the applicable rules for environmental protection and conservation; and, provide the concessionaire and the National Council of Free Trade Zones, when these require so, with formal quantitative statements about goods, raw materials, etc13.

c. Free Trade Zones and Mercosur

Article 2 of Mercosur CMC Decision No. 8/1994, as amended by the CMC decision No. 33/2015, states that the Member States will apply the Common External Tariff or, where appropriate, the applicable national tariff, to goods originating from free trade zones located within Mercosur, unless the goods have only been stored without being transformed, in which case they will not lose their origin prior to the free trade zone.

Said Mercosur regulation bans Member States to issue the Mercosur certificate of origin for goods produced in the free trade zones located in their territory. At the same time, it authorises Member States to apply the corresponding customs tariff to the importation of such goods if they deem appropriate, even if one of the Member States does not comply with the indicated ban and issues the Mercosur certificate of origin.

Paraguay´s case is quite atypical in this subject, since it first internalised CMC Decision No. 8/1994 on December 30, 1994, by article 1 of Decree No. 7145/1994, but then “de-internalised” it on January 16, 1995 – in less than a month – by Decree No. 7346/1995, which modified the aforementioned article 1 of Decree No. 7145/1994 for the sole purpose of excluding CMC Decision No. 8/1994, and thereby avoiding the entering into force of the aforementioned ban.

As a result, Paraguay has been issuing certificates of origin Mercosur to goods from free trade zones located in the country, which are normally accepted by customs, both from Paraguay as well as from the other Mercosur Member States without the application of extra-zone import tariffs. However, this has not been entirely peaceful, due to the power granted by CMC Decision No. 8/1994, allowing customs of Member States to ignore the validity of the Mercosur certificates of origin issued under such conditions.

II. Maquila

Regarding the maquila regime, article 1 of Law No. 1064/1997 defines it as industrial or service processes that incorporate labour and other national resources used for the transformation, production, repair or assembly of goods of foreign origin imported temporarily for such purpose to be subsequently re-exported, in execution of a contract signed with a company domiciled abroad.

To take advantage of the maquila regime, the individual or entity must (i) be domiciled in Paraguay and authorised to carry out acts of commerce. The maquila programme has to be approved by the National Council of Maquiladora Export Industries (the “CNIME”)14 and by a joint resolution from the Ministry of Finance and the Ministry of Industry and Commerce15.

The maquila programme can be classified in four types: simple, services, intangible and sub-maquila; and five (5) forms of operation: pure maquila, idle capacity, subcontract, twin plant or shelter16.

The approval process of a maquila programme before the CNIME, as well as its modification, extension, reduction, suspension or cancellation, is a process carried out in about six months once all required documentation is ready.

a. Tax Regime

Maquiladora companies can temporarily import different goods with suspension of customs tariffs and internal taxes: raw materials and inputs necessary for production; machinery, devices, instruments, and spare parts for the production process; industrial safety tools, equipment and accessories; telecommunication and computing equipment for the exclusive use in the maquiladora industry; box trailers and containers17.

The permanence in the country of imported raw materials and inputs under the maquila temporary admission regime cannot exceed a period of twelve months from the date of importation, extendable by a Bi-Ministerial Resolution for one time only for another equal period, at the request of the maquiladora company and for a duly justified reason. Other goods may remain in the country for the entire duration of the maquila programme, except for box trailers and containers, whose maximum stay in the country is six months.18.

The Maquila contract and the activities carried out are taxed by a single tax of 1% per month on the value added in the national territory or on the value of the sales invoiced in the month, whichever is greater. The value added in the national territory is equal to the value of the goods acquired internally plus value of the services contracted and wages paid within the country to perform the maquila contract19.

In the case of sales to the national market of goods imported under the maquila regime, the maquiladora company must pay the taxes applicable for its nationalisation in force at the date of the temporary import clearance, plus all internal taxes applicable on said sales. These sales cannot exceed 10% of the total volume exported in the preceding year, and the general income tax of Paraguay 10% apply to the profits from these sales. Current income tax is 10% on net income20.

Maquila contract and the activities carried out in execution thereof are exempt from any other national, departmental, or municipal tax. This exemption covers the import of goods falling under the maquila contract, the re-export of goods imported under said contract and the export of goods transformed, manufactured, repaired, or assembled under said contract21.

Unlike the free trade zone regime, the maquila regime does not present conflicts at Mercosur scale, since it does not face a norm like CMC Decision No. 8/1994.

b. Obligations

Maquiladora companies must register the Bi-Ministerial Resolution approving the maquila programme before the Administration of National Customs (the “DNA”), and also provide sufficient guarantee for the tariffs eventually applicable to temporarily imported goods. In addition, maquiladora companies must comply with the terms set forth in the approved programme and used the raw materials and inputs for the authorised operations.

Also, maquiladora companies must train the national personnel necessary for the execution of the programme, and notify both the Ministry of the Finance and the Ministry of Industry and Commerce in case of duly justified suspension of activities within ten days following the date on which that occurs. Finally, they must submit monthly to the DNA, through the CNIME, a form stating the volume, type and value of imports, consumption, and exports or re-exports made, and record their operations in specially authorised ledgers22.

III. Final considerations

Paraguay has two tax regimes to stimulate local production for export markets: Maquila and Free Trade Zone.
Both present similar tax benefits: On one hand, the possibility of introducing goods into the national territory avoiding payment taxes and tariffs normally applicable; on the other hand, a simplified and reduced tax regime on gross values, without the application of general taxes to income, dividends and sales on export-oriented activities.

The fact that these two regimes have managed to persist and grow over several years speaks about a mature sector of the economy with positive experience for most of its actors.

1. Asuncion, Paraguay
vouga.com.py
First published in October 2022 as part of ALAE e-book named “desafios, ameaças e oportunidades na gestão jurídica”.
2. Law 523/1995 §7.
3. Decree 1554/1996 §27.
4. Law 523/1995 § 3.
5. https://www.ip.gov.py/ip/destacan-inversion-extranjera-de-us-800-millones-en-zona-franca/ (last accessed on 2022.07.18)
https://www.ip.gov.py/ip/ejecutivo-aprobo-concesion-de-zona-franca-con-millonaria-inversion-en-concepcion/ (last accessed on 2022.07.18)
6. Law 523/1995, chapter IV.
7. Law 523/1995 § 17
8. Decree 15554/1996 § 31(i)/(n)
9. Decree 15554/1996 § 31(n).
10. Law 523/1995 § 10.
11. Law 523/1995 § 11(b).
12. Decree 15554/1996 § 31(a)-(d).
13. Decree 15554/1996 § 31(f)/(h)/(j)/(k), 63 y 74; Law 523/1998 § 11(d)-(e).
14. Official website https://www.mic.gov.py/maquila/ES/quienes-somos-cnime.php (last accessed on 2022.07.18).
15. Decree 9585/2000 § 47.
16. Decree 9585/2000 § 42.2.
17. Law 523/1995 § 12.
18. Law 523/1995 § 12.
19. Law 523/1995 § 29.
20. Law 523/1995 § 16.
21. Law 523/1995 § 30.
22. Law 523/1995 § 15.

Reglamento que establece el procedimiento y las condiciones mínimas para realizar remesas físicas de divisas al exterior

El Directorio del Banco Central del Paraguay (el “BCP”), a través de Resolución Nro. 7 de Acta Nro. 68 de fecha 25 de noviembre de 2022 (la “Resolución”), aprobó el reglamento que establece el procedimiento y las condiciones mínimas para realizar remesas físicas de divisas al exterior. La Resolución dispone que luego de que la Superintendencia de Bancos verifique que se cumplan las condiciones mínimas y del procedimiento reglamentario, las entidades bancarias y cambiarias podrán realizar operaciones de remesas físicas de divisas al exterior.

Para poder realizar remesas físicas de divisas al exterior, por cualquier medio ya sea terrestre, fluvial o aéreo, la Superintendencia de Bancos otorgará una autorización de carácter general para operar con una determinada entidad contraparte y/o corresponsal extranjero, quién se encargará de la liquidación y pago del contravalor en cuenta bancaria.

A fin de obtener la autorización, las entidades bancarias y cambiarias, deberán cumplir con las siguientes condiciones mínimas y presentar los siguientes recaudos ante la Superintendencia de Bancos:

  1. Identificar a las entidades corresponsales y/o contrapartes extranjeras en las operaciones de remesas físicas de divisas.
  2. Especificar los países y las ciudades en los que estén domiciliadas las entidades extranjeras.
  3. Presentar las constancias que acrediten que tanto la entidad contraparte del exterior, como también el corresponsal responsable de la liquidación de las operaciones, se encuentran debidamente autorizados, por el órgano de supervisión del país en los que operan, para realizar este tipo de operaciones.
  4. Las entidades corresponsales y/o las contrapartes extranjeras deben estar sujetas a una supervisión similar a la local o a satisfacción de la Superintendencia de Bancos del Banco Central del Paraguay.
  5. Proforma del contrato a ser utilizado entre las partes en donde se establezcan como mínimo las obligaciones mutuas de las partes y las condiciones de la prestación del servicio, entre otros.
  6. Otros datos y/o documentaciones adicionales requeridos por la Superintendencia, en el proceso de evaluación para brindar la autorización particular, o con posterioridad.

La Resolución también establece como condición mínima que las entidades bancarias y cambiarias acrediten que tanto su contraparte extranjera como la entidad responsable de la liquidación de las operaciones, cuenten con políticas y procedimiento adecuados para la prevención del lavado de dinero, financiamiento del terrorismo y proliferación de armas de destrucción masiva.

Es de suma importancia mencionar que los países donde se encuentren domiciliadas las entidades extranjeras deben pertenecer al Grupo de Acción Financiera Internacional (GAFI) u otro organismo similar. El BCP podrá formalizar convenios de cooperación con el órgano supervisor de dichos países, de manera a compartir información en forma reciproca sobre estas operaciones.

Celebramos el lanzamiento de la Asociación Paraguaya de Venture Capital (PARCAPY)

El pasado 14 de noviembre de 2022, nuestro equipo tuvo el honor de participar en el lanzamiento de la Asociación Paraguaya de Venture Capital (PARCAPY), que reunió a importantes personalidades del sector emprendedor en nuestro país, tanto autoridades como miembros fundadores y afiliados. 

Estamos muy orgullosos de ser afiliados y de apoyar desde el inicio a esta organización que tiene como finalidad la promoción y el desarrollo del capital de riesgo en Paraguay. 

Desde VOUGA Abogados aportamos nuestra experiencia y nos esforzamos por ofrecer soluciones versátiles, creativas e innovadoras para el ecosistema emprendedor, tecnológico y de venture capital.

Estamos orgullosos de haber creado el primer departamento especializado en Venture Capital (Vouga VCA) de Paraguay. Nuestro objetivo es permanecer a la vanguardia en la prestación de servicios jurídicos del área para inversores nacionales e internacionales, así como también a emprendedores y startups.

Tax News November 2022

Executive summary

NormDateContent
Decree No. 8.301November 17, 2022The Presidency of the Republic vetoed in full bill No. 7,022/2022, extending Value Added Tax ("VAT") deductions for individuals who provide services independently.
Decree No. 8.416November 30, 2022Extends until December 31, 2022, the validity of the special ISC taxable bases for certain fuels derived from oil.
General Resolution No. 122November 21, 2022The Undersecretariat of State for Taxation ("SET") updates the list of taxpayers subject to the jurisdiction of the General Directorate of Collection and Regional Offices.
General Resolution No. 105December 17, 2021 (reminder)The SET established the schedule of due dates for several groups of taxpayers to compulsorily adhere to the Integrated National Electronic Invoicing System ("SIFEN") - Reminder for Group 3 and following.

More information:

► Decree No. 8,301/2022 - The Presidency of the Republic fully vetoes the bill seeking to extend the VAT deduction for individuals who provide services independently.

Through Decree No. 8,301/2022 (the "Decree"), the Presidency of the Republic fully vetoed Bill No. 7,022/2022 (the "Bill"), whereby it was proposed to amend Articles 88 and 89 of Law No. 6,380/2019 (the "Tax Law").

The draft Bill proposed to amend the Tax Law and, thereby, allow individuals who independently render personal services to deduct the full input VAT tax credit on purchases of consumer goods, such as food and non-alcoholic beverages, among others. As one of the main reasons for the objection, the Executive Branch indicated that the Bill violates the principles of equality before taxes, proportionality, necessity, and reasonableness.

With the total veto of the Executive Branch, the Bill returned to the Chamber of Deputies, which confirmed by absolute majority the acceptance of the veto. Next, the Senate Chamber must decide whether to approve or reject the veto. It is expected that this chamber will also accept the veto since the Executive Branch has transcribed in the Decree the text of the legislative amendment bill of the Senate Chamber.

It is important to remember that the Executive Branch issued Decree No. 8,175 on November 7, 2022, which extended the deductibility of the VAT tax credit for certain purchases. More information on this matter can be accessed through the following link: https://vouga.com.py/se-amplian-las-deducciones-del-iva-para-personas-fisicas-que-prestan-servicios-de-manera-independiente/

► Decree No. 8,416/2022 - Extension until December 31, 2022, of the special ISC tax bases for certain petroleum fuels.

Through Decree No. 6,620/2022, the Executive Branch modified, on a transitory basis, the ISC taxable bases for the importation and commercialization of the following oil-derived fuels:

ProductTaxable Base
1) Gas Oil/Diesel Type IIIG. 2.388,9 per liter
2) Virgin NaphthaG. 3.045,6 per liter
3) Naphtha RONG. 6.033,3 per liter

Originally these tax bases were to be in force only during February 2022, but then their validity was extended monthly at the rate of one decree per month. Decree No. 8,416/2022 is the last of these extensions, extending the validity of these tax bases until December 31, 2022.

► General Resolution No. 122/2022 - The SET updates the list of taxpayers subject to the jurisdiction of the General Directorate of Collection and Regional Offices.

The SET updated the list of taxpayers under the General Directorate of Collection and Regional Offices' jurisdiction by General Resolution No. 122/2022 (the "RG").

As of December 1, 2022, the taxpayers indicated in the list of Annex I of the RG are removed from the category of "Large Taxpayers" and are incorporated into the category of "Small Taxpayers" under the jurisdiction of the General Directorate of Collection and Regional Offices.

As of the same date, the taxpayers indicated in Annex II of the RG are removed from the "Medium Taxpayers" category and incorporated into the "Small Taxpayers" category, subject to the jurisdiction of the General Directorate of Collection and Regional Offices.[1].

Taxpayers whose Single Taxpayer Registry (" RUC") number does not appear in any of the annexes of the General Resolution, remain in the category in which they are currently, with no change in the competence of the General Directorate of the SE T that administers them


[1] Annexes I and II of General Resolution, can be found at the following link

If you wish to know if you or your organization are affected by this Resolution, you can consult the complete list of taxpayers in the following link: following search engine.

► General Resolution No. 105/2021 - Mandatory schedule was established for several groups of taxpayers to adhere to SIFEN - Reminder for Group 3 and following.

All taxpayers, especially those in Group 3 of the SIFEN, are reminded that the SET issued General Resolution No. 105/2021 (the "RG"), dated December 17, 2021. Through this RG, the mandatory calendar for several groups of taxpayers to adhere to the SIFEN was established, foreseeing ten groups with nine different due dates, with a difference of one quarter between the dates foreseen for one group and another, except for groups 1 to 3, according to the following calendar.

GroupsDate from which they are obliged
1 – “Pilot plan”July 01, 2022
2 – “Voluntary adherence”July 01, 2022
3 – “Compulsion”January 02, 2023
4 – “Compulsion”April 03, 2023
5 – “Compulsion”July 03, 2023
6 – “Compulsion”October 02, 2023
7 – “Compulsion”January 02, 2024
8 – “Compulsion”April 01, 2024
9 – “Compulsion”July 01, 2024
10 – “Compulsion”October 01, 2024

Obligated taxpayers from groups 3 to 10 may start issuing electronically before the established date in case they wish to do so gradually. However, once the mandatory date arrives - January 2, 2023, for group 3 - they must exclusively issue all their documents electronically since the authorization and stamping of their pre-printed or self-printed documents, granted by the SET, will cease to be valid, except for the one related to virtual withholding receipts.

It should be considered that the implementation of an electronic invoicing system is a process whose cost and development are borne by the taxpayer, which often involves a considerable implementation time, as acknowledged by the SET in article 4 of the RG when it grants a period of up to twelve months of adaptation to those who wish to become voluntary electronic issuers.

Therefore, it is extremely important to be aware of whether you or your company are affected by the SIFEN obligation, because if you are and you do not take the appropriate measures in time, you may no longer be able to operate normally. If you want to know if you or your organization are affected by this RG, you can consult the complete list of taxpayers in the following search engine. For more details or better advice, you can contact our tax professionals.

Marco Regulatorio del Microseguro

Con la Resolución SS.SG. N° 254/2022 (la “Resolución”), la Superintendencia de Seguros (la “Superintendencia”), aprueba el marco regulatorio del microseguro. Esta Resolución entró en vigencia a partir de su fecha de emisión, 14 de octubre de 2022; sin embargo, las aseguradoras que actualmente se encuentren comercializando con la denominación de microseguro, tendrán un plazo de 180 días para ajustarse a los nuevos requerimientos. 

Mediante esta Resolución se define al microseguro como aquel diseñado en beneficio de personas de bajos ingresos, previéndose condiciones simples y coberturas acotadas, cuya prima mensual por riesgo asegurado no exceda de 1 jornal mínimo vigente para actividades diversas no especificadas en la capital. La modalidad de contratación del microseguro puede ser individual o colectiva.

De acuerdo a la Resolución, no podrán ser ofertados ni comercializados productos con la denominación “microseguro” si el plan y la póliza no hubieran sido inscriptos ante la Superintendencia . Los planes de microseguro inscritos a instancia de la Asociación Paraguaya de Compañías de Seguros (APCS) podrán ser aplicados por cualquier aseguradora sin más trámite.

Así también, las aseguradoras deberán presentar a la Superintendencia, al cierre de cada ejercicio, el desempeño del plan, basado en el ratio combinado resultante, considerando como mínimo tres años de experiencia, si los hubiera.

Además, la Resolución establece las condiciones y el contenido para una póliza de microseguro, incluso dispone obligaciones a las aseguradoras como la de publicar videos en su página web, donde se explique las condiciones de cada producto y el procedimiento en torno a ellos.

Otras cuestiones importantes que regula esta Resolución son el contenido mínimo de un contrato de microseguro, la prueba del contrato de microseguro, la entrega de la póliza, la comunicación entre las partes, el pago de las primas, la denuncia del siniestro, el pago de la indemnización y los canales de distribución de las pólizas. Un importante componente de estos puntos es que se reconoce el factor tecnológico para varios de estos puntos. Por ejemplo, se establece que los contratos de microseguro podrán ser celebrados de forma remota o no presencial y que la suscripción de un producto de microseguro se podrá evidenciar mediante la póliza de microseguro suscrita ya sea de manera impresa o digital. Además, permite que las pólizas sean entregadas a los tomadores por medios tecnológicos o convencionales; en tanto que las comunicaciones puede ser también por medios tecnológicos o convencionales.

Finalmente, las aseguradoras deberán informar mensualmente a la Superintendencia sus operaciones de microseguro. La Superintendencia podrá requerir cualquier información adicional que considere para sus labores de supervisión.

Con esta nueva Resolución la Superintendencia busca otorgar mayor facilidad y efectividad al desarrollo del microseguro ya que esta modalidad de seguro está íntimamente ligada a la inclusión financiera.