• Decree No. 7402/2022 

On July 11, 2022, the Executive Branch issued Decree No. 7,402 (the "Decree"), whereby it amended Decree No. 4,644/2022 and provided for new conditions to qualify a territory as a low or no tax jurisdiction ("BONT" per its Spanish acronym).

The new conditions for a territory to qualify as a BONT are: 

(i)             That the taxation of income from activities developed, assets located, or rights economically used in the country or jurisdiction is subject to taxation or effective income tax rate inferior to the income tax rate that would apply in Paraguay in analogous operations; and, 

(ii)           There is no bilateral or multilateral agreement in force that allows the effective exchange of information between Paraguay and the jurisdiction under analysis. 

In addition, the Decree enables the Tax Administration to prepare a list of countries or jurisdictions that it considers as BONT. For the preparation of this list, the Tax Administration may take as a reference the lists of tax havens or non-cooperating countries prepared by recognized international organizations. The Tax Administration will publish this list on its website.