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