PARAGUAY IN NUMBERS

Paraguay is one of the world’s leading food producers and exporters, as well as the world’s biggest renewable energy supplier. With the most competitive tax regime in the region and a strategic location at the heart of the continent with easy access to both the Pacific and Atlantic Oceans, Paraguay can grow your business.

The country has achieved impressive economic growth and shared prosperity over the last 15 years. The economy grew at 4.5 per cent per year on average (2004-2017), faster than most of its regional comparators. There has also been fast income growth among the bottom 40 of the population, which grew at 4.2 per cent annually over 2003-2017. The middle class has almost doubled since 2003, becoming—at 38 per cent of the total population in 2015—the second largest group, just below the vulnerable population.

Abundant, clean energy + fiscal stability + 10% flat tax rate
PARAGUAY, INVESTMENT DESTINATION 1#

International trade position:
1st Renewable Technology
2nd Stevia Producer
3rd Barge Fleet
3rd Exporter of Castor Oil
5th Exporter of Soybean Oil
5th Soybean Exporter
5th Exporter of Yerba Mate
6th Exporter of Cassava Starch
7th Meat Exporter
8th Exporter of Leather
9th Exporter of Corn

OPPORTUNITIES – INDUSTRIES

Paraguay offers opportunities in road construction and engineering services, electrical equipment and installation, road building machinery, project management consulting, and highway operations concessions.

The country has attractive investment incentives for assembly/distribution operations and the lowest factor costs in the region. There are few restrictions on the types of products that can be produced under the maquila system. The Mercosur agreement allows products to be marked as “made in Paraguay/Mercosur” with only 40 per cent minimum local content and be re-exported to any Mercosur country tax-free (in Paraguay, these products pay a one per cent tax over the value-added in Paraguay). Agriculture is the primary driver of the Paraguayan economy. This industry presents opportunities for animal genetics and other areas of biotechnology, fertilizers, pest control, farm equipment, and processing machinery.

Paraguay’s construction and industrial sectors growth outpace the capacity of local construction materials production. Domestic production cannot meet the current demand for cement and concrete manufacturing. The rapid demand for the construction of warehouses for industry and agriculture has surpassed the capacity of local companies that build roofing systems. Demand also is increasing for higher-quality construction materials currently not locally available. Projected large infrastructure projects will require purchasing new or used heavy machinery, as well as engineering, project management consulting, and financial services.

INCENTIVES

An expanding economy has permitted monetary extension lately, determined by record horticultural generation. Agriculture is so imperative to Paraguay that the decision party proclaimed amid the 2018 race that they would not raise charges, as the homestead sector is so urgent. It is additionally one of the biggest net exporters of clean energy on the planet, the biggest exporter of natural sugar, and the 6th biggest maker of soybeans. This is an economy prepared for the up and coming generation of manageable business.

Be that as it may, Paraguay isn’t only a farming country; it’s turned into a favoured goal for maquila administrations, a spot for manufacturing plants that import and amass obligation-free segments for the fare. These administrations permit plant proprietors to exploit minimal effort work and just pay obligation on the esteem included parts, causing the Paraguay charge environment to happen to enthusiasm to worldwide organizations hoping to exploit these chances.

Investment Incentives:

60/90 act and its resulting amendments allow, under specific requirements and conditions, different duty incentives for foreign investments:

  • Exemption of assessments for the fuse of organizations.
  • Full exclusion from traditions obligations for capital merchandise legitimately connected in the industrial or farming creation cycle.
  • Withholding charge complete exception on the repayment of advances surpassing USD 5m.
  • Exemption from the payment of charges on settlements and payments abroad as premium, commissions and capital amid a concurred term, for investments over USD 5m.
  • Full exclusion from expenses that influence profits and benefits from endorsed ventures, for a term of as long as ten years for investments surpassing USD 5m.
  • Investments can be as capital (counting credits, and so forth.), equipment, brands, innovation exchanges, and so forth.
  • The organization in charge of the advancement of foreign investments is REDIEX, of the Ministry of Finance of Asunción. Incentives under Law 60/90 are commonly affirmed inside 45 days of the solicitation.

What’s more, Paraguay has marked a few reciprocal and global investment security arrangements and perceives worldwide discretion.

MAQUILA PROGRAM

Maquila is a generation framework through which organizations situated in Paraguay can create merchandise and ventures to be sent out, for the benefit of a mother organization found abroad. Maquila organizations can profit by an entirely positive duty routine:

  • 1% Income Tax.
  • Exemption from VAT payment.
  • Suspension of import duties.
  • Exemption from duties on settlements of salary and profits abroad.
  • Notwithstanding other extra duty exclusions, for example, the exception of expenses on documents and acts, consular charges, half port and aeroplane terminal duties, assesses on credits, charge on licenses, civil expenses, among others.
  • Any regular or legitimate individual, national or foreign, may profit by the program in a business structure. The undertaking must be affirmed by the National Council of Export Maquiladora Industries (CNIME).
  • Organized/Free commerce Zones

Right now, in Paraguay, there are sans two zones in Ciudad del Este, where both national and universal organizations can work. The fundamental target of these free zones is the development of exercises for the fare, even though the activities inside the nation are permitted. The organizations situated in these free zones appreciate a few duty exceptions notwithstanding an uncommon expense routine with a pay charge rate of 0,5%.

VAT & Excise

The business charge rate additionally remains at 10% in Paraguay, and its income is an imperative wellspring of pay to the Paraguay government. There is a decreased VAT rate of 5% for pharmaceuticals, the “fundamental family bushel” and farming, plant and organic product items, just as property rentals. Fares are not exposed to VAT.

CHAMBERS & INVESTMENT OFFICES

Federation of Production Industry and Commerce – FEPRINCO
(Federation of Production, Industries, and Commerce)
Palma 751, Union Club Building, 3rd Floor, Asunción
Tel / Fax: 595 (21) 446 638, 595 (21) 446 638 / 444 963
E-Mail: [email protected]

Unión Industrial Paraguaya – UIP
(Industrial Union)
Av. Stmo. Sacramento 945 c / Prof. Chávez, Asunción
Tel / Fax: 595 (21) 606 988, 595 (21) 606 988
E-Mail: [email protected]
[email protected]
Web: http://www.uip.org. py

National Chamber of Commerce and Services of Paraguay – CNCSP
Estrella 540, Asunción
Tel: 595 (21) 493321, 595 (21) 493321
Fax: 595 (21) 440817
Email: [email protected] py
http://www.ccparaguay.com.py

Association of Producers of Vegetable Oils
Tte. Zarate 271 Esq / Bestard, Asunción
Tel: 595 (21) 660 447, 595 (21) 660 447
Fax: 595 (21) 607 559

Center of Importers of Paraguay
(Importers Chamber)
Av. Brasilia N ° 1,947 almost Av. Artigas, Asunción
Tel: 595 (21) 299 800 – 280 600 – 281 223
Email: [email protected], [email protected]
Web: http://www.cip.org.py/

Customs Brokers Association
(Centro de Despachantes de Aduana del Paraguay)
Address: Montevideo 173 , Edificio Boquerón, 4to. Piso
[email protected]
[email protected]
[email protected]
[email protected]
https://www.cdap.org.py/

Exporters Trade Association
(CAPEX–Cámara Paraguaya de Exportadores)
Address: Cesar López Moreira Nº 1.030 e
Telephone: (595-21) 606 220
E-mail: [email protected]
http://www.capex.org.py/web/

MERCOSUR

Mercosur is a South American trade bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full members are Argentina, Brazil, Paraguay and Uruguay. Venezuela is a full member but has been suspended since December 1, 2016. Associate countries are Bolivia, Chile, Colombia, Ecuador, Guyana, Peru and Suriname. Observer countries are New Zealand and Mexico.
Mercosur’s purpose is to promote free trade and the fluid movement of goods, people, and currency. Since its foundation, Mercosur’s functions have been updated and amended many times; it currently confines itself to a customs union, in which there are free intra-zone trade and common trade policy between member countries. The official languages are Spanish, Portuguese, and Guarani.

Mercosur and associate states (Andean Community) have an FTA is the place, meaning that 92% of all products traded between the nations have 0 import/export fees, thus facilitating access to goods and services at much better financing rates.

Preferential Trade Agreement between India and MERCOSUR
https://www.indiantradeportal.in/vs.jsp?lang=1&id=0,1,63,75