Author: dev_

We are pleased to announce the incorporation of GEORG BIRBAUMER, who will bring his expertise in financing and capital markets, which will add great value to our Corporate and Banking & Finance areas. This new incorporation is a valuable reinforcement to our human resources in order to always provide our clients with the best service.

Georg holds a law degree from the Universidad Nacional de Asunción and an LL.M. in International Legal Studies from the Georgetown University Law Center in Washington D.C. During his LL.M. studies Georg also worked as a Legal Intern in the Washington D.C. office of Dechert LLP. In addition, he served as a Teaching Assistant for the Foundations of American Law summer class, following the completion of the LL.

Prior to joining the team, Georg worked as an International Lawyer in the Buenos Aires office of Cleary Gottlieb Steen & Hamilton LLP. Georg has been involved in a large number of international transactions, focusing on different types of financing transactions, including transactions related to sovereigns, public entities and private companies from different Latin American countries, such as Argentina, Chile, Paraguay and Uruguay. Georg is fluent in Spanish, English and German.

We welcome Georg and wish him success in his new role.

If you would like to know more about our Corporate area, please do not hesitate to contact Georg at his e-mail address (gbirbaumer@vouga.com.py).

With the aim of helping companies to formalize their employees and bring their labor obligations up to date, the Ministry of Labor, Employment and Social Security (MTESS) and the Social Security Institute (IPS) have decided to grant a grace period, authorizing the exoneration of fines established in the legal provisions for a term of 60 calendar days. Thus, from November 1 to December 31, 2018, the payment of fines for late registration in the Employer Labor Registry and late submission of annual payrolls will be exonerated.

This provision, established in Decree 553/2018, arose as a result of numerous companies being in arrears with their obligations, which is punishable by a fine of 10 to 30 minimum daily wages - in accordance with Decree 8304/2017, as amended by Decree 9368/2018.

It is important to note that, although not expressly mentioned in the decree, this exoneration will not be applied retroactively. For this reason, fines that were generated before November 1 will not be exonerated from payment.

For more information on timely compliance with current labor obligations, please do not hesitate to contact Walter Vera (wvera@vouga.com.py) or Daniela Leguizamón (dleguizamon@vouga.com.py).

In order to facilitate the operation of Micro, Small and Medium Enterprises (MSMEs), the Government plans to simplify the formalities and the process of formalizing operations to position the sector in the local market. Currently, many companies operate in an irregular manner, not even having a Single Taxpayer Registry (RUC). Others are moderately formalized -i.e., they have a RUC- but are not registered with the Instituto de Previsión Social (IPS) and do not have a commercial license, which hinders the hiring of personnel and the formalization of products.

In order to position Paraguayan products in the domestic market, inter-institutional work is required, headed by the Ministry of Industry and Commerce (MIC). The line to be particularly strengthened is the food industry, since Paraguay currently processes juices, sweets and foods that are marketed both in Asunción and in other major cities in the country.

The first step will be to break down the barrier of access to information to provide microentrepreneurs with the necessary knowledge about how to formalize their operations. Vice Minister Isaac Godoy added that they will then insist on reducing bureaucracy and breaking down current tariff barriers. Godoy commented that he expects to see the first results within six months to a year, as some resolutions and decrees need to be modified to simplify the relevant regulations before any action can be taken.

Through the web page of the Ministry of Finance, the current status of each of the files filed by individuals, public institutions, decentralized entities, international organizations, among others, can be viewed. Thus, this Secretariat of State intends to speed up the process and the control of procedures, since it receives a monthly average of 8,700 files -about 430 per day- through all the entry desks it has.

To make inquiries, interested parties should follow the steps below:

- Enter the institutional web page (www.hacienda.gov.py) and click on “File Status”;

- Enter the file number and the corresponding year;

- Click on “Search”.

Interested parties can also download the Android application for their cell phones from Google Play.

The Draft General Budget of the Nation (PGN) for fiscal year 2019 contemplates an investment in infrastructure of 4.9 trillion guaraníes destined to the Ministry of Public Works and Communications (MOPC) and 1.5 trillion guaraníes for projects of other entities for construction, maintenance and conservation of works.

The MOPC will also develop an urban development plan for the Costanera Norte, and will convene the sectors involved for this purpose. The work on the Costanera Norte includes some 11 km, with a 15 km bike path, alternative roads, and the construction of two viaducts in the area of the Botanical Garden. The plans do not rule out the possibility of installing intensive industries in the recovered area in order to generate jobs in the area.

In addition, the MOPC expects to call for bids for the reconstruction of the most critical sections of Route No. 9 “Carlos Antonio López” (Transchaco route) before the end of the year, in order to award the works in May 2019. The work will be executed under the Rehabilitation and Maintenance Contracts by Service Index (CREMA) modality, and the reconstruction will be divided into 7 sections plus the accesses to the communities of Loma Plata, Filadelfia, Neuland and others, which will be in charge of an eighth company.

For its part, the National Electricity Administration (ANDE) projects works for the value of US$298 million as priorities for 2019, for which it will seek financing through the law that grants State guarantees. Thus, the supplier's credit would finance supply contracts and works up to a value of US$300 million with a guarantee from the Public Treasury and for an amortization term of 10 years (plus a grace period of at least three years). ANDE will also improve and reinforce power distribution lines in the metropolitan area, for which it will invest US$100 million. It also foresees the construction of more subway distribution lines which, although much more expensive than overhead lines, will be the long-term solution to reduce, as far as possible, power service interruptions.

A new tool made available to the public by the National Public Procurement Directorate (DNCP) shows the geographical location of the works tendered by the Paraguayan State. The so-called “Interactive Map of Tenders” allows searches by tender name, entity, stage and dates, as well as detailed information on the tender and the contracts. The interactive map can be accessed through the following link: https://www.contrataciones.gov.py/datos/visualizaciones/mapa-obras#/map.

If you would like to know more about bidding opportunities, please do not hesitate to contact: Walter David Vera (wvera@vouga.com.py) 

The most recognized directories that list and rate law firms and their members around the world once again include Vouga Abogados in their most recent editions, highlighting our firm as one of the leaders in Paraguay. In the same way, they distinguish numerous professionals of Vouga Abogados with recommendations and high individual considerations.

• The recently released 2019 edition of the Chambers and Partners guide ranks the Firm in the Band 1 category for Banking and Finance, Corporate/Commercial and Dispute Resolution in addition to highlighting us equally in two other areas and individually recommending eight of our lawyers.
• The 2018 edition of The Legal 500, currently accessible online, ranks us Tier 1 for Corporate and M&A, Dispute Resolution and Environment, highlighting the Firm in four other areas and individually recommending nine of our professionals.

• The current edition of The IFLR1000, available through its website, ranks the Firm in the Tier 1 category for the area of Financial and Corporate, the most important of the areas analyzed for Paraguay, and individually highlights nine of our lawyers.

With major editorial teams dedicated to researching the performance of law firms, these directories offer those who consult them an accurate understanding of the legal environment in each jurisdiction listed. Today, even professional associations such as the International Bar Association (the world's largest bar association) are analyzing the growing importance of these directories, taking into account their tangible and intangible benefits for both firms and clients.

We are grateful for the trust placed in us by our clients, who are the basis of all these achievements by the Firm and its professionals.

The leading guide The IFLR1000, which ranks the top lawyers and law firms in the corporate and financial areas in more than 120 jurisdictions around the world, has ranked our firm in the Tier 1 category (Rank 1) for the Financial and Corporate area, placing it as one of the leading firms in Paraguay.

IFLR1000 also highlighted several professionals from Vouga Advogados, with high considerations. Attorneys Rodolfo Vouga and Cynthia Fatecha lead in the “Highly Regarded” category, while Perla Alderete, Alice Ferreira, Marta Martínez, Marco Colmán, Walter Vera and Andrés Vera are ranked as “Notable Practitioners” in their respective areas of expertise. The guide also highlights Rodolfo Guillermo Vouga in the “Rising Star” category.

First published in 1990, The IFLR1000 rankings incorporate a ranking of lawyers and law firms categorized by practice area and jurisdiction - including reviews of firms' performance, strengths, client and peer reviews and examples of their work - and an online database of transactions, as well as legal market news and analysis.

From Vouga Abogados we express our gratitude to our clients, whose trust is the basis of the achievements of the firm and its professionals.

Learn more about our firm's profile in The IFLR1000 here: https://bit.ly/2x98EDC

In order to formalize the hiring of employees for less than a full working day, unions related to the Paraguayan Chamber of Supermarkets (CAPASU) and the Ministry of Labor have agreed on a draft bill to be presented soon.

This regulation would allow young students to work part-time -from 16 to 43 hours per week-, thus acquiring work experience and having the possibility of being hired later by companies on a permanent basis.

By formalizing part-time work, the aim is to avoid school dropout rates and encourage the desire to progress, offering the same benefits as a formal job: a salary that corresponds to the hours worked and social coverage as a contributor to the Social Security Institute (IPS).

If you would like to learn more about the labor regulations in force in Paraguay, please do not hesitate to contact Perla Alderete (palderete@vouga.com.py) or Walter David Vera (wvera@vouga.com.py) 

In the search for greater agility in the process and control of procedures, the Ministry of Finance has made transparent the management of files filed by citizens, public institutions, decentralized entities, international organizations and others, with online technology in real time, thanks to which only an Internet connection is needed to view the current status or the progress of a file in the Ministry of Finance.

The consultation process is simple:

• Access the website of the Ministry of Finance (http://www.hacienda.gov.py)
• Enter the “File Status” menu (located in the right column).
• Enter the file number and the corresponding year.
• Click on the “Search” button.

Android users can also download the Ministry's application (app) free of charge from Google Play to carry out this and other procedures.

If you would like to learn more about procedures before governmental institutions, please contact Andrés Vera (avera@vouga.com.py) or Silvia Benítez (sbenitez@vouga.com.py)

In order to make it easier for taxpayers to comply with the requirements established by the latest regulations that introduced changes in the regime of joint stock companies, the Treasury Counsel's Office of the Ministry of Finance enabled electronic procedures such as notification of the registration of amendments to bylaws, exchange of shares and communication of share transfers.

Likewise, the Attorney's Office issued Resolution AT No. 05/18 establishing the documentary requirements for each process, with the purpose of electronically submitting such documents. The regulations are available on the institution's website (www.abogacia.gov.py), in the “Legal Framework” section.

Training sessions are also planned for the interior of the country, the schedules of which will be published in due course on the web page and other institutional communication networks.

If you wish to know more about the procedures derived from the modifications to the regime of Joint Stock Companies, do not hesitate to contact Perla Alderete (palderete@vouga.com.py) or Marco Colmán (mcolman@vouga.com.py)