The Paraguayan Government and the Tax Authority – the SET, issued Decrees No. 3457 and 3480, dated March 16 and 23, 2020, and SET Resolutions No. 46 and 47 dated March 20 and 23, 2020, the put forward a set of measures aimed at keeping tax payers with as much cash reserves as possible to face the economic hardship caused by the measures adopted by the Government to fight the spread of the COVID-19. Thus, the following measures and promotional payment regimes were established:

1. The dates for repayment of current payment facilities due from March 21 to 31, 2020 have been extended to April 1, 2020.

2. General measures. From March 23 to June 30, 2020, the following measures have been adopted for all types of payment facilities:

    • The number of unpaid assessed contributions was increased from 4 to 6 and/or from 120 to 180 calendar days of delay for payment facilities to be no longer effective with respect to the outstanding balance.
    • The requirement of not having registered any payment facilities left without effect within the last 180 days in order to apply for a new payment facility was suspended, and a new payment facility can be applied for immediately.

3. Income tax for 2019. An exceptional and transitory regime of payment facilities is established for Personal Income Tax (IRP), Agricultural Activities Tax (IRAGRO) and Commercial, Industrial and Services Tax (IRACIS) for the year 2019, closing on December 31, subject to the following rules:

    • Initial payment of a minimum of 20% of the financed debt (tax, plus interest, plus fines), which must be paid within 2 days of the presentation of the financing request.
    • Interest rate of 0% for financing.
    • Up to 5 monthly payments.
    • This regime will be in force from March 16 to April 30, 2020 for the IRP, and from March 23 to May 31, 2020 for the IRAGRO and IRACIS.

This regime of payment facilities for the 2019 Income Tax is not an extension of the deadlines for filing the IRP liquidation, nor an exoneration of the interest and fine for late payment that would be caused by their late payment, but an exoneration of the new interest that is applied on the financed amount, constituted by the capitalization of the tax, interest and fines.

In the preceding clarification, neither IRACIS nor IRAGRO are mentioned, since their due dates have been extended until June 2020 by SET Resolution No. 49, dated April 31, 2020; that is, with a due date later than the end of the special payment facilities regime for Income Taxes of 2019.

For your convenience, we have included copies of the mentioned Decrees and Resolutions:

SET_2020_03_16_DTO-3457

SET_2020_03_20_RG-46

SET_2020_03_23_DTO-3480

SET_2020_03_23_RG-47

If you wish to obtain more information with respect to the deadlines and other tax related measures, please contact with Andrés Vera (avera@vouga.com.py).