El Ministerio de Trabajo, Empleo y Seguridad Social (MTESS) aprobó, mediante el Decreto N.º 3822/2025 (el “Decreto”), el Programa de Incentivo al Empleo Juvenil Formal (el “Programa”), con el objetivo de promover la formalización de jóvenes entre 18 y 29 años a través de incentivos económicos a micro, pequeñas y medianas empresas (MIPYMES).
El Programa establece un esquema de subsidio estatal de hasta el 35% del salario mínimo legal vigente por cada joven contratado bajo la modalidad de primer empleo formal. Esta asistencia cubre el 14% del aporte patronal y el 4% del aporte obrero al Instituto de Previsión Social (IPS), siendo transferida directamente por el MTESS a dicho organismo. El empleador abonará el 2,5% restante del aporte patronal y retendrá el 5% del aporte obrero.
Adelante exponemos algunos puntos relevantes del Decreto:
Subsidio estatal a la seguridad social
El Programa contempla un subsidio de hasta el 35% del salario mínimo legal vigente, destinado a cubrir parcial o totalmente las cotizaciones al IPS. El subsidio se distribuye de la siguiente manera:
14% del aporte patronal (cubierto por el Estado).
4% del aporte obrero (también cubierto por el Estado).
El empleador abona el 2,5% restante del aporte patronal y retiene el 5% restante del aporte obrero.
La asistencia se transfiere mensualmente y directamente al IPS por el MTESS, sin pasar por el joven ni la empresa.
Adhesión al Programa
Las empresas interesadas deben adherirse mediante la plataforma EmpleaPY (https://emplea.mtess.gov.py) y cumplir con los siguientes requisitos:
Estar formalizadas ante la DNIT, el IPS y el MTESS.
Clasificarse como MIPYMES con hasta 50 empleados.
Tener al menos un año de actividad formal.
No registrar mora con el IPS (salvo refinanciación aceptada).
No haber contratado al mismo joven en los seis meses previos.
En caso de que haya más de un contratado por la empresa en el marco del programa, al menos el 50 por ciento deberán ser mujeres.
Las empresas podrán incorporar hasta el 20% de su plantilla promedio declarada en los últimos seis meses, o hasta dos beneficiarios si no cuentan con cotizantes activos.
Requisitos para los jóvenes beneficiarios
Los postulantes deben:
Tener entre 18 y 29 años.
Contar con entre 0 y 12 cotizaciones registradas en el IPS.
No tener vínculo laboral con instituciones públicas.
Comprometerse a realizar una capacitación obligatoria mínima de 60 horas durante el contrato, dictada por el SNPP o SINAFOCAL, vinculado al área de desempeño.
No haber trabajado previamente en la misma empresa en los últimos seis meses.
Los contratos deberán tener una duración mínima de 8 meses y máxima de 12 meses, y el trabajador debe ser registrado en el IPS desde el primer día laboral.
Finalizado el contrato: migración al régimen general del IPS
El Decreto establece que una vez finalizado el plazo máximo del contrato bajo EmpleaPYJoven, el trabajador deberá ser migrado al régimen general del IPS, con las cotizaciones completas a cargo del empleador y del trabajador, conforme a la normativa vigente.
Suspensión temporal y complemento parcial del subsidio
La asistencia económica podrá suspenderse temporalmente o abonarse de forma parcial en ciertos casos:
Parcial: cuando el trabajador perciba subsidios por reposo, licencias breves o suspensiones justificadas, siempre que el período sea inferior a un mes.
Temporal: durante licencias por maternidad, reposos superiores a un mes, suspensión de contrato autorizada por el MTESS o investigaciones por incumplimientos.
Causales de exclusión del Programa
Tanto jóvenes como empresas pueden ser suspendidos o excluidos del Programa en los siguientes casos:
Mora del empleador con el IPS por más de tres meses consecutivos o dos alternados.
Información falsa o adulterada.
No localización del trabajador tras tres visitas consecutivas.
Incumplimiento de requisitos de capacitación o formalización.
Subdeclaración salarial o domicilios inexistentes.
Fallecimiento del beneficiario o empleador.
En caso de exclusión por falsedad o fraude, el MTESS podrá exigir la devolución de los aportes transferidos y remitir el caso a la Procuraduría General para acciones judiciales.
Despido o renuncia
Si el joven es despedido sin causa justificada, la empresa quedará inhabilitada por 12 meses para postular nuevamente al mismo puesto dentro del Programa.
En caso de renuncia o abandono injustificado, el joven no podrá volver a postular durante los 12 meses siguientes.
En ambos casos, la empresa podrá volver a ofrecer la vacancia, pero debe comunicar los motivos formales de la desvinculación a través del sistema REOP.
Capacitación y control
Todos los beneficiarios deben completar un curso formativo relacionado con el puesto, dictado por el SNPP, SINAFOCAL u otras instituciones habilitadas. La verificación del cumplimiento estará a cargo del MTESS, que podrá realizar visitas aleatorias in situ sin carácter de inspección laboral.
This content is for general informational purposes only and should not be construed as specific legal advice. Should you require specific guidance, please do not hesitate to contact us.
El Ministerio de Trabajo, Empleo y Seguridad Social (MTESS) emitió la Resolución N° 324/2025 (la “Resolución”) en abril de 2025, a través de la cual se implementa la generación electrónica de recibos para la Liquidación de Salarios, Vacaciones y Aguinaldo por medio del Sistema de Registro Obrero Patronal (“REOP”).
La Resolución también dispone que el uso de recibos digitales constituye una herramienta opcional para dar cumplimiento a lo establecido en el artículo 235 del Código Laboral. La firma de dichos recibos deberá adecuarse a lo previsto en la Ley N.º 6822/2021 “DE LOS SERVICIOS DE CONFIANZA PARA LAS TRANSACCIONES ELECTRÓNICAS, DEL DOCUMENTO ELECTRÓNICO Y LOS DOCUMENTOS TRANSMISIBLES ELECTRÓNICOS.”.
El Ministerio de Trabajo, Empleo y Seguridad Social (MTESS) estableció aranceles para la descarga de recibos digitales, los cuales se aplicarán mediante suscripciones semestrales, conforme al siguiente detalle:
Estos aranceles entrarán en vigencia a partir del 1 de diciembre de 2025. La Dirección General de Administración y Finanzas, junto con la Dirección de Tecnología de la Información y la Comunicación, dispondrán los mecanismos necesarios para garantizar el cumplimiento de la presente resolución.
This content is for general informational purposes only and should not be construed as specific legal advice. Should you require specific guidance, please do not hesitate to contact us.
El Consejo de Administración del IPS, suspendió los efectos de la Resolución C.A. N° 017-029/2025 de fecha 27 de marzo de 2025, que reglamentaba la Ley 7444/ 2025 “QUE MODIFICA VARIOS ARTÍCULOS Y AMPLÍA LA LEY Nº 4.457/2012 “PARA LAS MICRO, PEQUEÑAS Y MEDIANAS EMPRESAS (MIPYMES)” a través de una nueva Resolución emitida el 3 de abril del 2025.
Puntos suspendidos por medio de la Resolución:
Incorporación obligatoria de trabajadores y propietarios de MIPYMES a IPS:
La anterior resolución obligaba a los propietarios y trabajadores de micro y pequeñas empresas a registrarse en el seguro social del IPS dentro de un plazo de 36 meses, comenzando desde la expedición de la Cédula MIPYMES.
Base mínima imponible:
La reglamentación que fijaba la base mínima imponible para micro y pequeñas empresas en el 80% del salario mínimo legal durante los primeros 36 meses queda suspendida.
Tasas de aporte:
La tasa de 25.5% de aportes, aplicada sobre la base imponible en el régimen especial para micro y pequeñas empresas, queda suspendida.
Cobertura de Riesgos:
La resolución establecía la cobertura para riesgos como accidente y enfermedad común, accidente de trabajo, maternidad, invalidez, vejez y muerte; esto quedó suspendido para las empresas afectadas por este régimen especial.
Grupo Familiar Protegido:
Fue además suspendido el alcance de la cobertura para los familiares de los trabajadores y propietarios de microempresas y pequeñas empresas
Cálculo de la Antigüedad:
El cálculo de la antigüedad para las prestaciones de largo plazo (jubilación), que se basaba en los aportes realizados, y la norma de computar 50 semanas como un año de aportes también fue suspendido.
Recomendación para las empresas
Aconsejamos a las MIPYMES y a los estudios contables o áreas de RR.HH. mantenerse atentos a nuevas resoluciones del IPS. Esta suspensión puede deberse a la necesidad de revisar aspectos técnicos o presupuestarios, o bien al análisis de su implementación progresiva. Por el momento, las empresas deben continuar con el régimen contributivo general.
This content is for general informational purposes only and should not be construed as specific legal advice. Should you require specific guidance, please do not hesitate to contact us.
The Executive Branch enacted the Decree that regulates the Carbon Credits Law, seeking to boost the carbon credits market in Paraguay.
On February 18, 2025, the Executive Branch published Decree 3369/2025 (the “Decree”), which regulates Law 7190/2023 on Carbon Credits (the “Law”), enacted on October 12, 2023.
The purpose of the Decree is to regulate the Law, set the competences of the Ministry of Environment and Sustainable Development (“Mades”), and establish clear rules for the operation of the Carbon Credits Registry (the “Registry”).
Regulated Issues
Directorate of Carbon Markets (“DMC”)
The Decree creates the DMC, dependent of Mades, which will be in charge of implementing, supervising, and regulating the carbon market in Paraguay. The DMC will also be in charge of keeping the Registry and the Internationally Transferable Mitigation Outcomes (“ITMOs”) updated to generate transparent and traceable information.
Registry
The Registry must register the data of projects that implement mitigation measures to obtain carbon credits. It will be public, of free access, and permanently updated.
Approval of methodologies
By resolution, Mades may approve all or part of the methodologies used by the carbon standards. Once a methodology is approved, Mades shall recognize and register the projects developed under approved methodologies.
Additionality
Additionality will be recognized for projects that have been validated under methodologies approved by Mades.
Non-Objection Certificate
The issuance of a ‘non-objection certificate’ is foreseen, which will certify that there is no double counting of carbon credit projects, allowing access of these projects to Article 6 of the Paris Agreement for the subsequent obtaining of the letter of authorization for the transfer of ITMOs. The non-objection certificate must be issued before the registration of the project in the Registry; this aims to ensure that projects have certainty that they will be recognized by Mades before implementation.
Letter of Authorization
The issuance of a ‘letter of authorization’ is also foreseen, which allows the transfer of ITMOs abroad and certifies that there will be no double counting of ITMOs.
Mades will issue letters of authorization provided that the process of transferring ITMOs does not jeopardize compliance with Paraguay's Nationally Determined Contributions (“NDC”).
Determination of withholdings
Carbon credit holders shall withhold and abstain from transferring a percentage of such credits generated from the same project. The withholding may not be less than 3% or more than 10%; the percentage is to be determined by Mades according to Article 10 of the Law. This withholding obligation will only apply to the transfer of ITMOs in the regulated or compliance markets, but not to the transfer of carbon credits in the voluntary market.
Fee for transfer, registration, and modifications
For the transfer of ITMOs, the fee to be paid to Mades will be 0.08 minimum daily wages (equivalent to approx. USD 1.08 at current exchange rates) for the first transfer of each unit, quantified in tons of CO2 equivalent. For all other procedures, the fees range from 1 to 300 minimum daily wages.
In addition, the following fees apply for:
Registrations: i) 300 minimum daily wages for developers, ii) 150 minimum daily wages per project, iii) 20 minimum daily wages per notification of emissions, and iv) 300 minimum daily wages for certificates of non-objection, letters of authorization, and other instruments.
Modifications: (i) 300 minimum daily wages for fundamental changes to the project, and (ii) 10 minimum daily wages for certificates of no objection, letters of authorization, and other instruments.
Carbon projects whose owners are indigenous communities will be exempt from the payment of fees.
Penalties
Violations of the Law and the Decree will be subject to administrative summary proceedings pursuant to Law 6715/2021.
Next steps and opportunities
Mades will regulate other aspects, such as the operation of the Registry.
It is foreseen that the Law and the Decree, which will be complemented with additional regulation from Mades, will create a solid and predictable regulatory framework that will provide legal certainty for investments in the carbon credit market in Paraguay. Paraguay expects to boost the growth of the market and position the country as a relevant player in the global transition to a low-carbon economy, also providing new sources of income to productive activity in Paraguay.
Vouga Abogados advised Continental Grain Company, a global investment firm in agribusiness and food, on the sale of Corporación de Alimentos e Higiene del Paraguay S.A. (CAHPSA) to Nutrex, strengthening Nutrex’s presence in both the local and regional agribusiness market.
The transaction, announced on March 17 and closed last month, involved the transfer of CAHPSA’s grain processing plant, along with its brand portfolio and other strategic assets. This acquisition is part of Nutrex’s investment plan in Paraguay, aimed at expanding its operations and consolidating its export capacity.
Vouga’s legal counsel covered all aspects of the transaction, including the structuring, negotiation, and closing of the agreement.
The Vouga team was led by partners Perla Alderete and Rodrigo Fernández de Nestosa, along with associates Cecilia Vera, Andrés Vera, and Camila Dutra.
We are pleased to have advised Rocktree Logistics Group on the acquisition of Atria Soluciones Logísticas, leading company in river logistics on the Paraná-Paraguay Waterway with more than 25 years of experience, part of Southern Cross group.
This transaction marks a key milestone in Rocktree's expansion in Latin America, strengthening its presence in the logistics and river transportation sector in the region, and integrating Atria’s operations, which include push-boats, barges, port terminals, and floating cranes in Argentina, Paraguay, Bolivia and Uruguay.
The team at Vouga Abogados was led by partners Rodolfo G. Vouga, Rodrigo Fernández, and Manuel Acevedo, along with senior associates Cecilia Vera, Antonella Llamas, Silvia Benítez, and associates Lucas Rolón, Belén Rodríguez, and Camila Dutra.
Proskauer Rose LLP and Beccar Varela colleagues led the transaction from New York and Buenos Aires, respectively. Rocktree’s team was lead by chief legal counsel Marco Crusafio.
Para más información con relación a esta transacción u otros temas relacionados con Fusiones y Adquisiciones, por favor póngase en contacto con Rodolfo G. Vouga (rgvouga@vouga.com.py)
El Ministerio de Trabajo, Empleo y Seguridad Social (MTESS) emitió la Resolución N° 69/2025 (la “Resolución”) en enero de 2025, por la cual se establece el plazo de presentación de las planillas laborales del periodo 2024, en conformidad con el Artículo 29 del Anexo al Decreto N° 1989 de fecha 27 de junio de 2024.
Plazo de presentación
De acuerdo con la Resolución, la presentación de las planillas laborales correspondientes al ejercicio fiscal 2024 deberá realizarse entre el 1 de marzo y el 19 de mayo de 2025. La fecha límite de presentación variará según la terminación del número patronal, conforme al siguiente calendario:
Reporting Entities
La obligación de presentar las planillas laborales recae sobre todos los empleadores registrados en el Registro Obrero Patronal que hayan registrado movimientos de entrada y/o salida de trabajadores durante el ejercicio fiscal 2024. Quedan exceptuados aquellos empleadores que no hayan registrado trabajadores activos durante el periodo mencionado.
Modalidad de presentación
La presentación de las planillas laborales se realizará exclusivamente a través del Sistema Informático REOP, disponible en el portal web del MTESS.
4. Contenido de las planillas
Los empleadores deberán completar y cargar en el sistema REOP las siguientes planillas en formato Excel:
Planilla de empleados y obreros: Incluye datos personales y laborales de cada trabajador.
Planilla de sueldos y jornales: Contempla la información sobre salarios, bonificaciones, horas extras y beneficios.
Resumen general de personas ocupadas: Detalla la cantidad de empleados, obreros y supervisores, diferenciados por género.
Declaración jurada y sanciones
El contenido de las planillas laborales tendrá carácter de declaración jurada. Una vez presentadas, no podrán modificarse, salvo detección de inconsistencias por parte del MTESS.
La falta de presentación de las planillas laborales dentro del plazo establecido será sancionada conforme al Artículo 30 del Anexo al Decreto N° 1989/2024.
Además, los empleadores deberán actualizar sus datos como trámite previo a la presentación de las planillas.
This content is for general informational purposes only and should not be construed as specific legal advice. Should you require specific guidance, please do not hesitate to contact us.
January 29, 2025 - The Government has enacted Law No. 7452/2025 - Modernization of the investment promotion regime in public infrastructure and the expansion and improvement of goods and services under state responsibility ("Law 7452"), which will govern Public-Private Partnership (PPP) projects in Paraguay.
Law 7452, which comes into effect today, abrogates Law 5102/2013, known as the "PPP Law," and establishes a renewed framework to encourage investment in public infrastructure and improve the provision of goods and services under State responsibility.
We hope that this legislation will significantly stimulate the use of the PPP modality as a key tool for the implementation of large public investment projects, enabling the development of strategic infrastructure for the country.
We look forward to its implementation and the opportunities that this regulation will provide for the modernization and improvement of the sector.
El Ministerio de Trabajo, Empleo y Seguridad Social (MTESS) emitió la Resolución N° 75/2025 (la “Resolución”) en enero de 2025, a través de la cual se reglamenta el procedimiento de aplicación y la forma de pago de las multas previstas en el Anexo del Decreto N° 1989/2024, de fecha 27 de junio de 2024.
La Resolución establece los lineamientos necesarios para regularizar las obligaciones laborales, incluyendo inscripciones patronales, comunicaciones laborales y presentación de planillas. Estas disposiciones, detalladas en el Decreto N° 1989/2024, abarcan comunicaciones de entrada y salida de trabajadores, permisos, vacaciones, sanciones, accidentes laborales, y otros aspectos administrativos.
Entre los principales puntos, la Resolución dispone:
Entrada en vigencia de multas: Las sanciones comenzarán a aplicarse desde el 1 de febrero de 2025. Las mismas se cuantificarán en jornales mínimos según el tipo de incumplimiento y su criterio de aplicación (por trabajador o por establecimiento).
Pago fraccionado: Se autoriza el fraccionamiento de multas, sujeto a un pago inicial del 20% del importe total. El plazo máximo para el pago dependerá del monto acumulado, oscilando entre 1 y 12 meses.
Topes en multas por trabajador: Se limita la aplicación de multas dentro del mismo concepto de incumplimiento a 10 jornales mínimos por mes.
Automatización del sistema: La Resolución encomienda la implementación de ajustes en las bases de datos del Sistema de Registro Obrero Patronal (REOP) para garantizar una administración eficiente de las multas y notificaciones.
Anulación de normativa previa: La Resolución deja sin efecto el Art. 2° del Anexo I de la Resolución MTESS N° 22/18 del 30 de enero de 2018, a partir de la implementación de las disposiciones actuales relativas al fraccionamiento de multas.
Cuadro de Multas y Criterios de Aplicación
Incumplimiento
Multa en jornales mínimos
Entrada en vigencia
Criterio de aplicación
Comunicación de entrada de trabajadores
1 – 3
01/02/2025
Por trabajador
Comunicación de vacaciones
1 – 3
01/02/2025
Por trabajador
Comunicación de sanciones disciplinarias
1 – 3
01/02/2025
Por trabajador
Comunicación de salida de trabajadores
1 – 3
01/02/2025
Por trabajador
Comunicación de preavisos
1 – 3
01/02/2025
Por trabajador
Comunicación de licencias y permisos
1 – 3
01/02/2025
Por trabajador
Comunicación de enfermedades profesionales
1 – 3
01/02/2025
Por trabajador
Comunicación de ausencias
1 – 3
01/02/2025
Por trabajador
Comunicación de accidentes laborales
1 – 3
01/02/2025
Por trabajador
Inscripción patronal (matriz y sucursales)
10 – 20
01/02/2025
Por establecimiento
Presentación de planillas laborales
10 – 20
01/05/2025
Por establecimiento
This content is for general informational purposes only and should not be construed as specific legal advice. Should you require specific guidance, please do not hesitate to contact us.
The National Directorate of Tax Revenues (“DNIT”) clarified doubts regarding the income calculation for the Non-Taxed Amount (“NTA”) of the Personal Income Tax (“IRP”) in the category of Personal Services Income (“IRP-RSP").
Binding Consultation
July 2024
The DNIT issued its opinion regarding the taxation and form of documenting the sale of community property of spouses.
Binding Consultation
December 2023
The DNIT expressed its opinion on the recognition of the Value Added Tax (“VAT”) credit from the purchase of vehicles for individuals rendering personal services.
Binding Consultation
July 2024
The DNIT established its position regarding the tax treatment of income obtained by a non-profit association under a private contract for the provision of services.
Binding Consultation
December 2023
The DNIT expressed its opinion on VAT and the form of documenting the sale of tickets to soccer matches through intermediary agents or payment networks.
► Response to Binding Consultation – Clarification regarding the income computation of the NTA in the IRP-RSP
In view of the end of fiscal year 2024 and the upcoming filing of the IRP-RSP corresponding to it, we bring up a binding consultation in which the DNIT recalled the criteria to be taken into account for the computation of the annual taxable income of the IRP-RSP and for the determination of whether or not it exceeds the NTA established for an individual to be registered as a taxpayer of the IRP-RSP.
In this regard, an employee stated that he was erroneously included ex officio in the obligation 715 of the IRP-RSP, since the amount of his taxable income was a little more than ₲75,000,000, a figure that does not exceed the NTA of ₲80,000,000 of yearly taxed income for the IRP-RSP.
In this regard, the DNIT proceeded to calculate the consultant's income based on the documents attached by him, finding out that his gross annual income according to the payroll was ₲82,940,000, of which ₲7,464,602 corresponded to the worker's contribution of 9% of the salary to the Instituto de Previsión Social (“IPS”), leaving the worker with a net annual income of ₲75.475.398.
Based on this, the DNIT understood that the applicant did not exceed the NTA and that his ex officio registration in the IRP-RSP was made because his employer, at the time of reporting his salary for the control of pending registrations as IRP-RSP taxpayers, did not discriminate the mandatory withholding on his salary for IPS’ contribution, reporting as taxable income the amount of his gross salary, and not the net amount of it.
In this regard, it is important to remember that neither the workers' contributions to the IPS, nor the benefits that employers provide directly to medical services entities in favor of their employees must be considered for the calculation of the income taxed by the IRP-RSP that is received during the fiscal year. Income exempted from IRP-RSP (Christmas bonuses, severance payments, etc.) are not included for this purpose either.
In the case of IPS contributions, their exclusion in the computation of income taxed by the IRP-RSP is established in Article 63 of Law 6380/2019 (“Tax Law”). Regarding the exclusion of exempted income in such computation, this is clarified in Article 35 of General Resolution No. 69/2020.
► Response to Binding Consultation – Form of documenting the sale of community property of the spouses in the community of marital property
In response to a binding consultation issued in July 2024, the DNIT ruled on the form in which the disposal of community property of spouses should be documented. The taxpayer who submitted the consultation mentioned that he intends to sell a vehicle that is part of the community property, but it is under the name of his wife. In this regard, he raised the possibility of issuing the invoice himself, since his wife is not registered as a taxpayer.
Regarding the above, the DNIT stated that: “… it is not appropriate for the taxpayer to issue an invoice in the name of his spouse, since both are individually liable for their tax obligations”. In the case of marriages with community property (or any other property regime of the marriage that may generate a community of property) there is no contributory unit of the spouses as a whole, but rather each of them must be considered as a separate taxpayer, with his or her own income and independent tax obligations.
This statement is supported by Article 51 of the Tax Law, which mentions that, for income tax purposes, in the case of marriages with community property, each spouse must pay separate income tax on the total income from personal services, as well as income tax in the category of capital gains (IRP-RGC) on the assets and rights in respect of which they appear as owners, whether they are their own or community property.
Regarding VAT, the response was limited to mentioning, on the one hand, Article 82 of the Tax Law, which does not mention the community of property as a taxpayer. On the other hand, mention was also made of Article 92 of the Tax Law, which establishes that taxpayers who carry out taxable, exempt or non-taxable acts are obliged to issue and deliver invoices, duly stamped by the Tax Administration, for each sale and rendering of services they carry out.
► Response to a Binding Consultation – Recognition of the VAT credit from the purchase of vehicles for individuals providing personal services.
In a response to a binding consultation issued in December 2023, the DNIT expressed its opinion on the VAT credit from the purchase of vehicles that may be used by individuals providing personal services, and the frequency with which they may use this item in their tax settlements.
The taxpayer made the consultation because he acquired a vehicle on June 6, 2023, of which he used as tax credit 30% of the VAT included in the purchase invoice; and, subsequently, on September 10 of the same year, with less than 3 months difference, he purchased another vehicle.
In this regard, the DNIT pointed out that Article 88 of the Tax Law provides that VAT taxpayers, who are so for the rendering of personal services, may take 30% of the VAT credit associated with the purchase of vehicles, without establishing a specific limit as to the number of times this may be done, so that this item may be used as many times as necessary.
However, the DNIT also emphasized that the use of the VAT credit from the purchase of vehicles is conditioned to the fact that (i) the good in question is affected to the income of operations taxed by VAT, (ii) represents a real expenditure and (iii) the invoice that supports it identifies the purchaser of the good (with name and tax identification number) and complies with all legal and regulatory requirements.
Finally, the DNIT also took the opportunity to remind the consultant that the eventual disposal of vehicles, mobile phones and other personal property or equipment, in respect of which the VAT credit has been used as indicated above, will be subject to VAT at the corresponding rate, considering 30% of their disposal value as the taxable base.
► Response to a Binding Consultation – Tax treatment of income obtained by a non-profit association under a private contract for the provision of services.
In response to a binding consultation of July 2024, the DNIT issued its opinion regarding the tax treatment to be given to income obtained by a non-profit association under a private contract for the provision of services.
In this regard, the association stated that it entered into a service contract with a third party for the performance of sewing and garment manufacturing work, for which it receives remuneration. As for labor, this is provided by the association, which is also responsible for the workers' salaries.
On the subject, the DNIT concluded that such income is subject to both VAT and Corporate Income Tax (“IRE”). This conclusion is based mainly on Article 25, Paragraph 2, and Article 100, Paragraph 5, of the Tax Law, which limit the respective IRE and VAT exemptions for non-profit entities to income that is linked to the purpose of their creation.
In this case, the DNIT considered that both the services and the activity developed, as well as the income generated from received for them, derive from a commercial activity that is not directly related to the purposes of the entity, since they generate a profit that arises from the combination of capital and labor.
Therefore, although the entity may be included in the exemptions of the Tax Law for non-profit entities, the sewing and dressmaking services it proposes to perform are not directly related to the specific purposes for which it was created, and therefore the corresponding taxes on such services and their income, which are subject to IRE and VAT under Article 1, Paragraph 1, and Article 80, Paragraph 2, of the Tax Law, respectively, must be applied.
► Response to Binding Consultation – VAT and documentation of ticket sales to soccer matches through intermediaries or payment networks
In response to a binding consultation dated December 2023, the DNIT addressed the VAT and the form of documentation of tickets to soccer matches, organized by the soccer clubs that play the match and the Paraguayan Soccer Association (“APF”), that are sold by intermediary agents or payment networks.
About this matter, the DNIT referred to Article 2 of Decree 312/2018, which specifically regulates the taxation and documentation of the business of ticket sales to public shows through intermediary agents or payment networks.
Referring to the procedure provided therein, but adding to it the VAT exemption for the sale of tickets to sporting events organized by non-profit entities, provided for in Article 100, Paragraph 5, of the Tax Law, the DNIT concluded that the sales of tickets to soccer matches organized by the soccer clubs that play in them and the APF, which are made by intermediary agents or payment networks, must be documented as follows:
The intermediary agent or payment network shall issue the ticket for the sporting event to the purchaser using the stamp issued to said intermediary by the DNIT, stating thereon the sales price exempt from VAT.
The sports entity shall issue to the intermediary agent or payment network the invoice for the tickets sold, exempt from VAT.
The intermediary agent or payment network shall issue to the sports entity (organizer of the sporting event) an invoice for the commission accrued for its services, including VAT.
In this way, the DNIT reaffirms the documentary procedure provided for in the tax regulations in force since before the Tax Law, but adjusting them to the taxation of the transaction, as appropriate (in this case, VAT exemption for the sale of tickets to sporting events by non-profit sporting entities).
