TAX INCENTIVE REGIME FOR THE INVESTMENT OF CAPITAL OF NATIONAL AND FOREIGN ORIGIN
“The increase in the production of goods and services”
“The creation of permanent sources of work”
“Export promotion and import substitution”
“The incorporation of technologies that allow to increase the productive efficiency and make possible the greater and better use of raw materials, labor and national energy resources”.
BENEFICIARIES AND FORMS OF INVESTMENT
• Agriculture and Livestock
• Air transport of cargo and passengers
• Ground transportation of cargo and passengers
• Radio, Television and Written Press
• Rural or urban telephony – Mobile telephony
• River transport
• Silos or storage in general
• Internet Services or Data Transmission and Scientific Research
• Hotel industry
TAX AND MUNICIPAL BENEFITS
c. Total exemption from customs duties and other equivalent charges, including internal taxes of specific application, on the importation of capital goods, raw materials and inputs for the local industry, provided for in the investment project; The Services activities are taxed by VAT. In addition, when there is domestic production, tax incentives for the importation of capital goods are not granted.
f. When the amount of FINANCING from ABROAD and the activity benefited by the investment is at least US$ 5,000,000, the payment of taxes on remittances and payments abroad for interest, commissions and capital will be exempt, for the term agreed upon, provided that the borrower is one of the entities indicated in Article 10, paragraph g) of Law No. 125/91.
h. Total exemption from taxes levied on DIVIDENDS AND PROFITS from approved projects, for a term of up to ten (10) years, counted from the commissioning of the project when the investment is of at least US$ 5,000,000 and the tax on such dividends and profits is not tax credit of the investor in the country from which the investment comes.
1. Ministry of Industry and Commerce;
2. Ministry of Finance;
3. Ministry of Agriculture and Livestock;
4. Technical Secretariat for Planning for Economic and Social Development (STP);
5. Central Bank of Paraguay (BCP);
6. Primary production sector (FEPRINCO);
7. Industrial or secondary production (U.I.P.).
ENVIRONMENTAL IMPACT: The investment project to receive the benefits of this Law, must have an Environmental License issued by the Ministry of the Environment (SEAM), in accordance with Law No. 294/93 “Environmental Impact Assessment” And its regulatory decrees.
For the installation of industrial plants, it will be necessary to contemplate the environmental impact and the planned framework with the urban planning of each locality.
EXTENSIONS: Requests for extensions of Biministerial Resolutions will be granted only once, for the term of (1) one year, after analysis by the Investment Council.
The extension shall be granted exclusively for the importation of capital goods, provided for in Article 5, subsection c).