Paraguay: Mutual Administrative Assistance on Tax Matters Internal Approval

On November 26^th, Paraguay published Law No. 6656. This law approved the Mutual Administrative Assistance on Tax Matters Convention, with the text amended by the Provisions of the Protocol that modifies the Convention on Mutual Administrative Assistance on Tax Matters, subscribed in Paraguay on May 29^th, 2018.

The complete text of said Convention, entered into between the Organization for Economic Cooperation and Development (OECD)’s members, is entirely included within the text of this Law.

The scope of this convention is the administrative mutual assistance on tax matters, which shall include, regardless of the residence or nationality of the involved person:

a. Exchange of Information, including simultaneous tax audits and participation in foreign audits.

b. Collection assistance, including imposition of precautionary measures.

c. Notification and/or transfer of documents.

It is also worth mentioning that the taxes included are the ones specifically listed in Annex A, as follows:

a. Income or Profits or Dividends Tax.

b. Capital Gains Tax – separately enforced with respect to income taxes.

c. Net Worth Taxes enforced with respect to one of the parties.

d. Income Taxes, Profit Taxes, Dividends Taxes, Net Worth Taxes imposed by political subdivisions or local authorities of one of the parties.

e. Social Security Mandatory Contributions.

f. Other taxes except for those levied on behalf of one party, such as: Property, Inheritance or Donation Taxes; Real Estate Taxes; Consumption Taxes (i.e. Value Added Tax or Sales Tax).

g. Specific Taxes on certain goods and services such as Specific Consumption Tax.

h. Automobiles Use Tax.

i. Other Movable Property Use Tax.

j. Any other Taxes.

k. Any other Local Taxes.

l. Analogous Taxes.