Paraguay: Tax Transparency International Standards Implementation Promotion

On November 26^th, Paraguay published Law No. 6657 aimed at the domestic and international administrative assistance on tax matters, through the implementation of the tax transparency and exchange of information international standards addressed to prevent and battle Tax Evasion and Elusion as well as the Illegal Financial Flows.

In this sense, the Law addresses:

a. Relevant Tax Information: any information, data, document, or declaration needed by the Tax Administration for complying with its duties, in line with local tax regulations, as well as any information needed due to the subscription of International Tax Treaties.

b. Information Duty: Upon the Tax Administration request, individuals, entities, legal structures, government agencies, must provide relevant tax information.

c. Reservation Duty: Tax Administration personnel must keep confidentiality with respect to the tax relevant information received, unless any of the few and specific situation of Confidentiality Exceptions stated in Article 9 of the Law, occur.

d. International Tax Information Exchange Agreement, Compliance, and Sanctions upon Non-Compliance.

Law No. 6657 is effective 90 days as of its promulgation date The Public Finance Sustainability Law is a legal instrument that contributes to the better implementation of the Tax Policy, providing greater fiscal discipline, reinforcing the transfer, and providing greater predictability of the Tax Policy in line with the instruments of the National Planning System.