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Paraguay is the best alternative taxes


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Paraguay is the best alternative taxes
Paraguay is the best alternative for investments

Published in: Investor Relations
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Paraguay is the best alternative taxes

  1. 1. Paraguay is the best alternative taxes Paraguay is the best alternative for investments Tax system simple and easy to pay very low taxes compared to Brazil and Argentina. Tax and labor regimes of Paraguay are simple, which makes the country more competitive than Brazil, which has a complex system. Paraguayan tax system has basically two main taxes: the tax on business income and IVA (Impuesto al Valor Agregado) value added tax This simplicity makes it very easy to do business in Paraguay, because is there much clarity of taxes that one actually has to pay once you are operating on a daily basis. Also, there are no limitations for the entry and exit of capital. Regarding the tax cost for various operations, when profits are not distributed and reinvested again, the cost is 10%, if profits are distributed to local partners who are not contributors personal income tax, the total cost is 14.5%, if profits are distributed to local partners taxpayers IRP (Personal Income Tax) is 19.5%, if profits are remitted to foreign partners, not domiciled in Paraguay is 27,3%. In comparison to the region, Paraguay has the most favorable tax system in the region, with a tax on business income of 10%, compared to 15% in Brazil, 17% in Chile, 25% in Uruguay, 35% in Argentina and 34% in Venezuela Paraguay is one of the countries with the lowest tax burden in Latin America, with 11.8% compared to 26.7% in Brazil, 25.5% of Argentina, Bolivia 19.9%, 19.5% Chile and Uruguay 17.1%. Other tax benefits, as provided by Law 523/05, which authorizes and sets the Free Zone System, and provides for the exemption from VAT and from all national taxes or departmental; assimilable treatment to exports and tax of 0, 5%. Law 60/90, tax incentives for capital investment both domestic and foreign origin, and has provided exemption from all kinds of internal taxation to incorporation of companies and enterprises, customs levies, release of bank reserve requirement or special deposits, taxes on distribution of dividends and remittances when the investment was less than $ 5,000,000