• Decree No. 7,086/2022

On May 19, 2022, the Executive Branch issued Decree No. 7,086/2022 (the "Decree"). Decree 7,086 establishes an exceptional and transitory regime for taxpayers to regularize their tax debts.

  • Debts that can benefit

Decree 7,086 applies on tax debts overdue on tax periods closed to December 2020 and for annual obligations up to the fiscal year closed on December 31, 2020.

The following debts may benefit from Decree 7,086:

  1. Debts recorded in the debt certificates issued by the Subsecretaría de Estado de Tributación (“SET” as per its Spanish acronym or “Tax Authority”) that are firm, liquid and enforceable, and are in the process of collection by the Advocacy of the Treasury (“ABT” per its Spanish acronym).
  2. Tax adjustments arising from tax assessments and application of penalties that are pending in jurisdictional proceedings derived from audits, administrative summaries or appeals for reconsideration.
  3. Tax adjustments arising from tax assessments and application of penalties derived from audits, administrative summaries or appeals for reconsideration with the taxpayer's express consent or acquiescence. This item includes those that are in collection management processes by the SET.

Taxpayers wishing to avail themselves of this benefit have until December 31, 2022, to submit their request to SET or to the ABT. In this context, they must pay the total amount of the debt, or formalize an installment plan with SET or ABT.

  • Payment in full of the debt

The Decree established that the monthly interest rate is 0% for taxpayers who pay in full all the tax debts referred to in the previous point.

  • Installment plan

To benefit from this special regime, the taxpayer must make an initial payment of at least 10% of the debt.

The payment of the remaining amount of the debt may be made in thirty-six (36) monthly installments, applying a monthly interest rate of zero-point seventy-five percent (0.75%).

Exceptionally and prior approval of the Vice Minister of SET, the taxpayer may obtain a payment facility plan of up to sixty (60) monthly installments, if the tax debts of the taxpayer exceed -individually or as a whole- the sum of guaraníes one billion (G. 1,000,000,000,000), after deducting default interest.

The regime established in the Decree does not provide for debts arising from payment facilities that become ineffective or lapse due to noncompliance by the taxpayer during the term of the Decree.

If the taxpayer fails to comply with the payment facilities plan, the benefit provided for in the Decree will be null and void.