The Secretariat for Consumer and User Defense (SEDECO) issued Resolution No. 705/2023 on May 31, 2023, with the purpose of regulating Law No. 6366/2019, which amends Law No. 1334/98 "On Consumer and User Defense", providing greater clarity and transparency in the information on credit operations (the "Resolution").
The Resolution provides that all transactions made between final consumers and suppliers of goods or services must comply, without exception, with the requirements set forth in Articles 4°, 6°, 10°, 15° and 29° of Law No. 1334/98 "On Consumer and User Defense", as amended by Law No. 6366/2019.
Article 4° defines the terms consumer and user, supplier, products, services, advertiser, acts of consumption, sustainable consumption, adhesion contract, collective interests and Total Cost of Credit (CTC).
Article 6° establishes the basic consumer rights, which include free choice, protection of life, health and safety, adequate education and disclosure, clear information on products and services, protection against misleading advertising and abusive commercial practices, repair of damages, formation of consumer associations, adequate provision of public services, compliance with advertised conditions, information on early cancellation of credit and knowledge of the CTC.
Article 10° specifies that the prices of products or services, including taxes, must be precisely indicated in the offer. In installment financing, information on the cost of financing based on CTC must be included.
Article 15° establishes the information that the service provider must provide in a clear and precise manner, such as the name and address of the supplier, description of the service, quality, materials used, price, term of validity, health and safety risks, contractual guarantee and the CTC.
Finally, Article 29° establishes the elements that must be included in credit operations, including the cash price, interest, surcharges, number of payments, total amount to be paid, rights and obligations in case of default, and CTC.
It is important to note that this regulation does not apply to financial entities regulated by the Central Bank of Paraguay (BCP) and the entities supervised by the National Institute of Cooperatives (INCOOP).
In addition, it provides that suppliers of goods and services, at the time of entering into adhesion contracts with consumers or users, must deliver a document containing all relevant information about the goods or services purchased. This information includes the total price already charged, the total cost to cancel the contract before the agreed expiration date, the value of the service, the CTC, and other details necessary for the consumer or user to fully understand the credit.
The Resolution also establishes that all information related to the CTC, issued by the suppliers, must be printed on sheets with logo and letterhead, signed by the person in charge and stamped by the supplier issuing the documentation, under penalty of nullity and subject to the penalties established in the regulations in force.
In case of non-compliance, the sanctions set forth in Decree No. 21004/03, which regulates the Sole Administrative Procedure for Summary Proceedings in Consumer and User Defense Matters and current or future resolutions, shall be applied.
The Undersecretariat of State for Taxation (“SET” per its Spanish acronyms) ruled on the application of Value Added Tax (“VAT”) to the acquisition of software and payment of fees for teachers from abroad by an educational entity recognized by the Ministry of Education and Science (“MEC”).
First semester 2023
Binding Consultation
The SET ruled on the invoicing and tax treatment of VAT applicable to an assignment of receivables and payment of interest.
First semester 2023
Binding Consultation
SET indicated the tax treatment of the investment in a mutual fund and the interest generated in the Personal Income Tax (“IRP”) for a natural persona with fiscal residence in Paraguay.
First semester 2023
Non-Binding Consultation
SET established its position on the possibility of using bank transfer slips to support the cancellation of invoices on credit.
First semester 2023
More information:
► Response to a Binding Consultation on the application of VAT on the acquisition of software and payment of fees for teachers from abroad by an educational entity recognized by the MEC
The SET responded to a binding consultation made by a taxpayer; an educational institution recognized by the MEC. The taxpayer explained when submitting its consultation that, since the Covid-19 pandemic, it has been developing teaching methods involving virtual platforms. To this effect, it makes payments for the acquisition of software to use a digital platform and, in addition, pays fees to teachers located abroad who developed their educational activities both in face-to-face and virtual format.
The taxpayer argued to the SET that these operations are exempt from VAT, considering they relate to its educational activities. To this effect, it cited article 100, paragraph 6 of Law No. 6,380/2019 (the "Tax Law"), which exempts from VAT the importation and sale of certain goods related to education services, when they are carried out in favor of educational entities.
In response to this consultation, the SET determined that two transactions are being carried out simultaneously by the taxpayer: (1) hiring of teachers from abroad for the development of educational activities in a virtual and face-to-face format, and (2) acquisition of licenses for the use of software from abroad to access virtual platforms.
Regarding the first operation, SET replied to the taxpayer that hiring teachers to render teaching services is exempt from VAT under article 100, numeral 3, paragraph “g” of the Tax Law.
Regarding the second transaction, the SET replied that this transaction is included within the "digital services" concept of the Tax Law, specifically within Article 12, paragraph "b" of General Resolution No. 76/2020. In other words, in this case, the SET understood that the category of digital service prevails over that of education, and, therefore, the exemptions for education services do not apply to the acquisition of software licenses to access virtual platforms, even when these platforms are for education purposes.
Consequently, the SET replied that the entities that intermediate the payment of software licenses to access virtual platforms are obliged to act as VAT collection agents, considering that the taxpayer explained that he makes the payments with bank transfers.
The SET concludes its analysis by explaining that the VAT exemption for importing goods, equipment, and supplies by educational entities contained in article 100, numeral 6, of the Tax Law, invoked by the taxpayer, does not apply to the transactions in question. SET bases this position on the fact that such exemption only applies to the operations (import and sale) of physical goods included in such provision and therefore does not extend to the operations described by the taxpayer, which, since they are related to the use and transfer of software by electronic means, correspond to services.
► Response to a binding consultation on the tax treatment of an assignment of receivables and interest payment transaction
A taxpayer asked the SET whether the interest and expenses generated in a credit assignment transaction are exempt from VAT. The taxpayer (“Supplier”) explained that it had entered into a service provision contract with another company (“Client”) and that it issued a credit invoice that was pending payment, so it assigned and transferred its collection rights arising from the provision contract to a bank (“Bank”) to advance the funds of the credit invoice.
This financing by the Bank generated expenses and costs, interest and administrative expenses, plus VAT (“Surcharges”), which the Bank charged to the Supplier by deducting them from the funds advanced to the Supplier in connection with the assignment of the credit, thus obtaining the Bank's result from the difference between the amount paid to the Supplier and the amount collected from the Client. The Supplier consulted SET on how to document the Surcharges of the credit assignment affecting operations (b) and (c) of the above image.
However, SET understood that the query did not refer to the Surcharges but to who is responsible for issuing the invoices when collecting the interest accrued after the assigned credit, which would be operations (e) and (f) of the above image. Due to this, SET addressed the consultation by indicating that two operations are being developed juxtaposed: (1) the assignment of the credit -(b) and (c)-, and (2) the collection of interest by the Bank or new creditor -(e) and (f)-.
Regarding the first transaction, the SET confirmed that the assignment of credits is exempt from VAT (article 100, numeral 1, paragraph "b" of the Tax Law). Regarding the second transaction, the SET indicated that the Bank or new creditor must issue the invoices for the collection of interest accrued after the assignment (article 81, numeral 2, paragraph “a” of the Tax Law). However, the SET should have addressed the original consultation on the documentation and taxability of the Surcharges for the assignment.
► Response to binding consultation on the tax treatment of an investment in a mutual fund and the interest generated by such investment
A taxpayer asked SET whether his investment in a mutual fund is deductible for determining his Personal Income Tax (“IRP”) liability. Additionally, he asked whether the interest generated by the mutual fund is exempt from tax, considering that the mutual fund invests the capital it receives in a portfolio of stocks and bonds.
Concerning the first question, regarding the possibility of deducting the investment in mutual funds for the determination of the taxpayer's income tax, the SET answered that, according to the provisions of the Tax Law, the income tax is divided into two categories, in practice, are determined and settled separately: (a) income tax on income derived from the rendering of personal services, and (b) income tax on income and capital gains ("IRP-RGC"). In this regard, SET explained to the taxpayer that the investment in mutual funds is not considered a deductible expense for any of the IRP categories.
About the second consultation, regarding the exoneration applicable to the interest received from the mutual fund, the SET answered that, effectively, the interest generated by the investment in the mutual fund corresponds to the IRP-RGC category, whose rules exempt it from this tax (article 56, numeral 11, of the Tax Law).
As an additional comment to what was resolved in the referred binding consultation, it is essential to point out that when a person invests in a mutual fund, the profit in the operation is obtained through the redemption of the quota part, with the order sent to the company that acts as administrator of the mutual fund ("AFPISA"). It is only at this moment when the AFPISA transfers to the investor the greater value generated in its quota parts as a result of the collection of interest and dividends obtained by the mutual fund that the referred exemption of the IRP-RGC would be activated if the investor is an individual with tax residence in Paraguay.
Before the moment indicated in the previous paragraph, the interests obtained by the mutual fund are not subject to Corporate Income Tax (“IRE”) since mutual funds are within the category of equity investment funds, which are considered as transparent legal structures (“EJT”), according to article 4 of the Tax Law. As an EJT, the income obtained by the mutual funds has a neutral tax effect in determining the IRE, so the interest earned by the mutual fund is not taxable for this tax either.
► Response to non-binding consultation on whether bank transfer slips can be used as payment vouchers to cancel invoices issued on credit
Through a non-binding consultation, a taxpayer asked SET whether any legal regulation establishes the use of the bank transfer slip as support for the cancellation of an invoice issued on credit. The taxpayer explains that he is making this consultation because he requested a money receipt for a payment he made to a supplier who had issued a credit invoice, which the supplier refused, arguing that the bank transfer slip is already the document that accredits the payment of the credit invoice issued by him, so he would not give a money receipt.
SET responded indirectly that there is no express legal tax regulation that regulates the use of bank transfer slips as support for the cancellation of an invoice issued on credit since neither this nor the money receipt are documents stamped by said institution.
However, despite this limitation, SET concluded that both the money receipt and the bank transfer voucher processed satisfactorily, due to their usual commercial use, can be considered as documents that serve as support for documenting, for tax purposes, the cancellation of invoices issued on credit by suppliers of goods and services.
On June 22nd, our partner Rodolfo Vouga Z. participated in a timely panel discussion on carbon markets organized by the Paraguayan-American Chamber of Commerce (AMCHAM Paraguay). Alongside Per Olofsson, CEO of Paracel S.A., the panelists shared experiences and perspectives for the carbon markets, exploring the potential and opportunities in Paraguay, as well as the sector's regulation.
The panel discussion garnered a great turnout of professionals and business leaders active in the carbon sector, and had an important coverage by the local press. During the event, Rodolfo Vouga and Per Olofsson discussed ongoing projects in various sectors such as forestry, agriculture, livestock, renewable energy, and transportation in Paraguay, as well as a bill presented in Congress that would regulate certain aspects of carbon credits in Paraguay, including ownership, registration, corresponding adjustments, among other issues. The panel generated a productive exchange of ideas with the audience.
Rodolfo Vouga emphasized the importance of having a legal framework with clear rules regarding carbon credit ownership and other regulatory aspects, which, in his view, will facilitate access to the markets for projects developed in Paraguay.
Carbon markets have become a key tool in driving the transition towards a low-carbon economy. Paraguay, with its vast biodiversity and business-friendly investment climate, positions itself as one of the jurisdictions with the greatest potential worldwide for the development of carbon credit projects. VOUGA ABOGADOS currently boasts a leading team in Paraguay with experience in implementing carbon projects.
We would like to express our gratitude to AMCHAM Paraguay for providing us with the opportunity to share our experience in this growing sector.
You can watch the discussion in the following link.
El Congreso paraguayo sancionó recientemente la ley que ratifica el Acuerdo de Reconocimiento Mutuo de Certificados de Firma Digital del Mercosur, celebrado el 5 de diciembre de 2019 (el “Acuerdo”), que tiene por objeto principal permitir el reconocimiento mutuo dentro del bloque de los certificados de firmas digitales o (en los términos de la normativa paraguaya) firmas electrónicas cualificadas emitidas en los Estados Parte.[1] En otras palabras, que las firmas electrónicas cualificadas expedidas por prestadores acreditados en un Estado Parte sean consideradas como tales en los demás Estados Parte.
Este reconocimiento no alcanza a toda las firmas electrónicas, sino sólo a las firmas electrónicas cualificadas emitidas por los prestadores de servicios de confianza habilitados por las autoridades competentes de cada Estado Parte. En el caso de Paraguay, la autoridad es el Ministerio de Industria y Comercio (MIC) a través de la Dirección General de Firma Digital y Comercio Electrónico. Ésta ha habilitado a tres empresas para la expedición de firmas electrónicas cualificadas en los términos de la Ley 6822/2021 de los Servicios de Confianza para las Transacciones Electrónicas, del Documento Electrónico y los Documentos Transmisibles Electrónicos, y el Decreto 7576/2022 que reglamenta la citada Ley.
El Acuerdo ya se encuentra en vigor entre Argentina y Uruguay desde agosto de 2021, y ahora se sumaría Paraguay, quedando pendiente la adhesión de Brasil.
Por tanto, asumiendo que cumplen con los requerimientos técnicos del Acuerdo[2], las firmas electrónicas cualificadas emitidas en Paraguay también tendrán validez legal en Argentina y Uruguay, y viceversa, sin necesidad de trámite o certificación adicional. Son evidentes los beneficios que otorga esta mayor seguridad jurídica y simplicidad en el intercambio transfronterizo de documentos electrónicos, sobre todo para las empresas que realizan habitualmente transacciones con los mencionados países vecinos.
En concordancia con el Acuerdo, la Dirección General de Firma Digital y Comercio Electrónico debería publicar en su sitio web las herramientas para facilitar la verificación de los documentos con firmas electrónicas cualificadas expedidas en Argentina y Uruguay. Las autoridades de estos dos países ya tienen disponible en sus respectivos sitios web estas herramientas para facilitar el reconocimiento mutuo de firmas electrónicas cualificadas, y agregarían la mismas herramientas respecto Paraguay.[3]
La ley que aprueba el Acuerdo pasa ahora al Ejecutivo para su promulgación, no siendo esperable el veto considerando que el proyecto de ley fue enviado al Congreso por el Ministerio de Relaciones Exteriores. Posteriormente el Acuerdo entrará en vigor entre los tres Estados Parte que lo han ratificado, siendo deseable que Brasil lo haga pronto considerando el elevado volumen de transacciones que este país representa dentro del bloque, y en particular para el Paraguay.
[1] Si bien el Acuerdo emplea el término “firma digital”, se utiliza aquí el “término firma electrónica cualificada” en consonancia con en la normativa paraguaya, Ley 6822/2022.
[2] El art. 3 del Acuerdo lista los requerimientos técnicos que deben reunir las firmas electrónicas cualificadas para que sean válidas bajo el Acuerdo; resumidamente: utilización de estándar internacional, datos mínimos que deber contener el certificado, posibilidad de su validación y prestador habilitado por autoridad competente. Por su parte, la Ley 6822/2022 lista los requisitos
[3][3] Ver sitios web de oficiales de validación de las autoridades de Argentina and Uruguay.
El pasado 16 de junio, el Congreso paraguayo sancionó la ley que aprueba el Acuerdo sobre Comercio Electrónico del Mercosur firmado el 29 de abril de 2021 (el “Acuerdo”), el cual establece un marco normativo común para el comercio electrónico basado en ciertos presupuestos mínimos a los que deben ajustarse las legislaciones domésticas de los Estados Parte.
El Acuerdo tiene similitudes con otros instrumentos internacionales precedentes, como son el Acuerdo de Asociación de Economía Digital (DEPA), celebrado entre Chile, Nueva Zelanda y Singapur, y el Capítulo 14 sobre Comercio Electrónico del Acuerdo Transpacífico de Cooperación Económica (CPTPP), celebrado entre Australia, Brunei Darussalam, Canadá, Chile, Malasia, México, Japón, Nueva Zelanda, Perú, Singapur y Vietnam. La mayor parte de las disposiciones del Acuerdo tienen como fuente directa al CPTPP, que a su vez ha servido de base para el DEPA, siendo éste más amplio y detallado que el Acuerdo. Esta comparativa permite inferir que el Acuerdo refleja la intención del Mercosur de no quedar rezagado frente a otros bloques económicos en materia marco normativo para el comercio electrónico.
Reconociendo la importancia de facilitar un comercio electrónico internacional seguro e interoperable, el Acuerdo establece presupuestos que los Estados Parte deben cumplir con relación a diversos aspectos esenciales que hacen al comercio electrónico, entre ellas:
Libertad de elección informada para el acceso a internet.
No imposición de derechos aduaneros a las transmisiones electrónicas transfronterizas, sin perjuicio de tributos internos compatibles con los acuerdos de la Organización Mundial de Comercio (OMC);
Validez legal de las firmas electrónicas como regla general y fomento al reconocimiento de mutuo de firmas electrónicas cualificadas/avanzadas;
Protección al consumidor contra el engaño y el fraude en línea;
Protección de datos personales mediante estándares internacionales, reglas no discriminatorias y cooperación en materia ciberseguridad, y el ejercicio de los derechos de acceso, rectificación y supresión de datos personales;
Facultad de regular la transferencia internacional de información (incluyendo la localización de bases de datos), siempre que no constituya una forma de discriminación o restricción encubierta al comercio;
Restricciones y requerimientos para el envío de información comercial no solicitada (spam).
Al cotejar estas pautas con la legislación doméstica paraguaya, resaltan a primera vista dos posibles desafíos. Primero, la Ley 6534/2020 sobre Datos Personales Crediticios es una normativa que no cumple con los “estándares internacionales”, conteniendo sólo un puñado de disposiciones sobre datos personales en general, dejando lagunas y dudas en aspectos importantes, tales como transferencia internacional de datos y violaciones de seguridad. Justamente, el proyecto de ley de sobre datos personales actualmente en curso en el Congreso menciona expresamente el Acuerdo en su exposición motivos (D-2162170).
Segundo, el Acuerdo requiere como regla general el consentimiento para el envío de publicidad no solicitada (opt-in) (art. 10.2), mientras que la normativa paraguaya se limita exigir que el consumidor pueda oponerse a la publicidad no solicitada cuando provee sus datos y cuando recibe la publicidad (opt-out) (Ley 4868/2013 de Comercio Electrónico, Título III).
La ley que aprueba el Acuerdo pasará al Ejecutivo para su promulgación, no siendo esperable el veto considerando que el proyecto de ley fue enviado al Congreso por el Ministerio de Relaciones Exteriores. Depositada la ley ratificatoria, el Acuerdo entrará vigor entre Paraguay y Uruguay, ya que Argentina y Brasil aún no lo han ratificado.
El Acuerdo se sumaría entonces a la creciente normativa paraguaya relacionada a la economía digital, siendo de importancia creciente y transversal para para las empresas con planes de crecimiento a largo plazo.
Circular CNV/DIR No. 023/2023 issued on May 30, 2023 by the National Securities Commission (CNV) introduces amendments to Circular CNV/DIR No. 028/2022 regarding the submission of risk rating reports by Risk Rating Companies and their access by the CNV. The main aspects of the Circular are detailed below:
Risk rating reports must be permanently available in digitalized format for access and/or delivery to the CNV. This includes the working/calculation papers and the risk matrix used, as well as the risk rating reports issued and the corresponding review report;
It is important to bear in mind that the submission of the risk rating reports must be made in accordance with the form and deadlines established in the Securities Market Regulation. In this regard, said regulation mentions that the rating report for securities market entities and issues of publicly offered securities must include an executive summary, the name of the rating entity and the date of assignment of the rating. In addition, a general description of the information used in the process and the analyses performed is required.
The rating information must contain the name and identification of the issuer, the date of authorization and registration with the CNV, the date of the financial background used, the rating and its rationale, including a projected cash flow and scenario analysis. Relevant comments or observations must also be provided, and, in the case of an issue, the series of the security must be indicated and the characteristics of the issue must be described. Likewise, the ratings and their updates must be sent by the Rating Agency to the issuing entity, the CNV and the Stock Exchange within 2 business days after their assignment. Brokerage Firms must make available to the public the ratings of the securities traded with them, as well as their updates.
The obligation to submit the risk matrix format used in a spreadsheet is established. This applies to ratings made through "cloudCNV".
CNV/DRC Circular No. 021/2023 issued on May 09, 2023 by the National Securities Commission (CNV) provides instructions related to the remission of Quarterly and Annual Periodic Documentation in accordance with the General Regulations of the Securities Market, established in CNV Resolution CG No. 35/23 of February 9, 2023. The main aspects of the Resolution are summarized below:
It is established that the e-mail address through which the aforementioned periodic documentations must be sent is estadosfinancieros@cnv.gov.py;
The format for sending the documentation is specified. In this regard, a file named as follows must be attached: "Corporate name of the Brokerage House (xxx) followed by the period and year (Month 20xx)". In addition, it is requested that the subject of the e-mail follow the same reference;
It is established that an acknowledgement of receipt will be sent to the sender to confirm receipt of the documentation sent in the same e-mail; and
In the event that the obligated entities encounter difficulties in the electronic transmission, the information must be sent in a physical medium, using a note addressed to the Incoming Desk of the National Securities Commission.
The Undersecretariat of State for Taxation (“SET”) has moved the due dates for the filing of tax returns and for the payment of certain tax obligations.
April 03, 2023
Instructive No. 04
The National Customs Directorate (“DNA”) adopted measures related to the registration process of signatures of persons involved in customs activities.
April 20, 2023
Decree No. 8,895
The regimes of (i) Value Added Tax (“VAT”) taxable base for certain goods under the tourism regime, and (ii) ISC tax rates for certain electronic products were not extended.
February 28, 2023 (Expiration)
General Resolution No. 105
The SET established the schedule of due dates for taxpayers to compulsorily adhere to the Integrated National Electronic Invoicing System (“SIFEN”) - Reminder for Group 4 and subsequent groups.
December 17, 2021 (Reminder)
More information:
► Resolution No. 129/2023 - The SET moves the due date for the filing of tax returns and for the payment of certain tax obligations
Through General Resolution No. 129/2023, the SET decided to move some due dates for filing tax returns and payment of tax obligations. This decision was made due to the non-business days of Easter Week.
Consequently, the following due dates for the filing of tax returns and the payment of tax obligations have been moved according to the following calendar:
The other maturities were not altered and are therefore governed by the Perpetual Maturity Schedule.
► Instructive No. 04/2023 – The DNA establishes rules for the registration of signatures of persons involved in customs activities
The DNA issued Instruction No. 04/2023 (the "Instruction"), whereby administrative measures are taken for registering persons related to the customs activity, regulated by Resolution DNA No. 80/2020.
The measures indicate that the registry of persons related to customs activity continues to be the only mechanism for registering and authorizing the signature registration file online. In addition, for the current fiscal period, the DNA established the option for customs brokers and forwarding agents to submit the bank reference with a savings bank instead of the current account bank reference requirement in order to register them as persons related to the customs activity.
On the other hand, DNA established that the deadline for importing companies to submit the meeting minutes with their meeting communication is June 30, 2023. This same date is also the deadline for submitting the financial statement documents (balance sheet, income statement, cash flow statement, statement of changes in equity, notes to the financial statements).
Finally, the other documents required by DNA Resolution No. 80/2020 for the registration of the signature of persons related to the customs activity must be submitted. The DNA's corporate contact e-mail address established through the Instructions is pvaa@aduana.gov.py.
► Decree No. 8,895/2022 - On April 30, the regimes for the reduction of (i) the Value Added Tax ("VAT") taxable base for certain goods under the tourism regime, and (ii) the ISC tax rates for certain electronic products expired
The Executive Power had issued Decree No. 8895/2023, whereby it resolved to extend until April 30, 2023, the validity of the following Decrees:
Decree
Provision
Decree No. 8048/2022
By which the taxable base of 5% was established for the liquidation of VAT at the time of importing goods under the tourism regime.
Decree No. 8.782/2023
Whereby the temporary modification to 0.5% of the ISC rates for cellular telephony devices and various household appliances, mentioned in paragraphs 2 and 3 of Article 12 of the Annex to Decree No. 3,109/2019, was provided for.
In accordance with the provisions of the measure related to the tourism regime, the VAT taxable base remained at 5% for the goods referred to in the annex to Decree No. 1,931/2019. Thus, the effective rate was as follows:
Period
Taxable Base
10% VAT effective tax rate
5% VAT effective tax rate
Until April 30, 2023
5%
0,5%
0,25%
The Executive Branch no longer extended these special regimes, so that as of May 01, 2023, the taxable base of the VAT applicable to the importation of goods subject to the tourism regime returned to 15% of the customs value (including customs duties), according to Decree No. 1,931/2019 and its amendments.
On the other hand, regarding the measure adopted concerning the ISC on electronic devices, the Executive Power had resolved to temporarily reduce by half the ISC rates for the following goods:
Product
Regular tax rates
Reduced tax rates
Difference
Automatic data-processing machines and units thereof; magnetic or optical readers, copying machines, hectographic machines, mimeographs, mimeographs, address printing machines, electrical machines, apparatus and equipment and parts thereof; sound recorders and reproducers, television reception apparatus, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus, video monitors and video projectors
1%
0,5%
-0,5%
Cellular telephony devices and portable terminals
1%
0,5%
-0,5%
This special regime was also not extended, so as of May 1, 2023, the 1% ISC rates for cellular telephony devices and miscellaneous household appliances will apply again, according to Decree No. 3109/2019.
► General Resolution No. 105/2021 - The calendar for taxpayers to join SIFEN was established (REMINDER for Group 4 and subsequent groups)
All taxpayers, especially those in group 4 of the SIFEN, are reminded that the SET issued General Resolution No. 105/2021 (the "RG") on December 17, 2021. Through this RG, SET established the mandatory calendar for several groups of taxpayers to adhere to the SIFEN, foreseeing ten groups with nine different due dates, with a difference of one quarter between the dates anticipated for one group and another, except for groups 1 to 3, according to the following calendar.
Groups
Date from which they are obliged
1 – “Pilot plan”
July 01, 2022
2 – “Voluntary adherence”
July 01, 2022
3 – “Compulsory phase”
January 02, 2023
4 – “Compulsory phase”
April 03, 2023
5 – “Compulsory phase”
July 03, 2023
6 – “Compulsory phase”
October 02, 2023
7 – “Compulsory phase”
January 02, 2024
8 – “Compulsory phase”
April 01, 2024
9 – “Compulsory phase”
July 01, 2024
10 – “Compulsory phase”
October 01, 2024
Obligated taxpayers from groups 4 to 10 may start issuing electronically before the established date in case they wish to do so gradually. However, once the mandatory date arrives - April 3, 2023, for group 4 - 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 vouchers.
Taxpayers should take into account that they will bear the cost of the development and implementation of an electronic invoicing system, 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 12 months of adaptation to those who wish to become voluntary electronic billers.
Therefore, it is crucial to be aware of whether you or your company are covered 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 or your organization are affected by this RG, you can consult the complete list of taxpayers in the following search engine. For further details or better advice, don't hesitate to get in touch with our tax professionals.
On March 28, 2023, the Secretariat for the Prevention of Money or Asset Laundering (Secretaría de Prevención de Lavado de Dinero o Bienes -SEPRELAD, by its Spanish acronym) approved, by Resolution No. 95/23, the implementation of the Module called: "Annual Information Form of the Obligated Entity and the Instructions for the Presentation", addressed to Non-Profit Organizations (NPOs). Said resolution abrogated Resolution No. 247 dated November 05, 2020, which approved the form for submission and update of data and the use instructions directed to NPOs.
The form must be submitted annually through SEPRELAD's Integral Operations Reporting System (Sistema Integral de Reporte de Operaciones - SIRO, by its Spanish acronym). The deadline for submitting the form, corresponding to fiscal year 2022, is May 31, 2023, and subsequently on May 31 of each year.
The aforementioned resolution has annexes corresponding to the form to be submitted, as well as the corresponding filing instructions.
Decree No. 9213 of April 25, 2023, has regulated Law No. 2640/05 which established the creation of the Development Finance Agency (Agencia Financiera de Desarollo – AFD, by its Spanish acronym), as amended by Law No. 6769/21, and abrogated Decree No. 7395/06.
Decree No. 9213 establishes that the AFD may grant financing to Intermediary Financial Institutions (IFIs) in legally authorized modalities and dictated by its Board of Directors. In addition, obtaining funding to grant financing to IFIs is not subject to the regulation of Law No. 6490/20 on Public Investment.
On the other hand, it indicates that the AFD may obtain loans with or without a Paraguayan government guarantee in local or foreign currency. For guaranteed loans, the AFD needs the favorable opinion of the Ministry of Finance; however, for unsecured loans, the AFD must communicate the Ministry of Finance the execution of the loan agreement within fifteen business days.
Likewise, prior to the issuance of bonds, with or without government guarantee, the AFD must communicate to the Ministry of Finance the issuance schedule, the amount and the financial conditions of each issuance. In the case of issuance of bonds with Paraguayan government guarantee, the AFD will need the prior favorable opinion of the Ministry of Finance within fifteen business days of receiving the communication. If the Ministry of Finance does not issue an opinion within the aforementioned term, it will be considered as an unfavorable opinion. The AFD may not unilaterally modify amounts, dates or financial conditions related to bonds issued with a Paraguayan government guarantee after receiving the opinion of the Ministry of Finance, and any modification will require the opinion of the Ministry of Finance.
In addition, it is established that the AFD may act as trustee, trustor and beneficiary in trust businesses related to its corporate purpose or the development of the financial, capital, insurance, pension funds or infrastructure markets. AFD may participate in trust business operations and modalities of trust permitted by Law No. 921/96 on Trust Businesses, and AFD's Board of Directors will determine the requirements and procedures for its participation in each trust business, as well as the risk limits it may assume. In addition, specific authorization from the Board of Directors is required for AFD's participation in each transaction.
Additionally, the AFD may participate in the financing of public infrastructure works through trusts. The Board of Directors will determine the form and percentage of AFD's participation based on the size, amount and complexity of the project. The AFD may also grant funds to IFIs to finance public infrastructure investment projects carried out or executed by the private sector, municipalities, local states and public companies. However, the total amount of loans must not exceed 30% of the AFD's net worth at the close of the previous year's fiscal year, and collateral or credit risk hedging instruments will be required.
In summary, the aforementioned decree establishes the provisions governing the legal nature of the AFD, its relationship with the Executive Branch and its powers. In addition, it regulates the obtention of loans and the presentation of reports for the obtention of bonds, determines the intervention in trust businesses and establishes the financing of public infrastructure. It also establishes the destination of funds and the credit certificate, as well as the regulation of foreign accounts and credits in process of liquidation. Finally, it establishes provisions for the composition, duties and powers of the Board of Directors, as well as for the admission and regulatory regime of its personnel.
