New Paraguayan decree aims to attract foreign companies

The new regulations allow the return of 0.5% of the VAT (Value Added Tax) credit to companies covered by the decree. According to the Paraguayan government, the initiative aims to promote the generation of formal, quality jobs, in addition to encouraging the growth of exports with greater national added value.

Another objective of the proposal is to generate more attractive conditions for foreign investment.

According to Peña, the measure comes after two years of internal discussions during his administration between the Ministry of Industry and Commerce (MIC) and the Ministry of Economy and Finance (MEF) about the investment regimes that would be adopted.

The president declared at the time of signing, in the city of San Lorenzo, that the approval of the new maquiladora law represents “a new step” towards the Paraguay that is sought, “a country that wants to see us working”.

According to him, Paraguay has attracted international attention in recent years, thanks to the changes implemented to encourage economic growth. “That prejudice that existed about us, and even from the Paraguayans themselves who did not believe that we could develop a globally competitive textile industry, today we are demonstrating that we can.”

With the new decree, the government hopes that the country will become more competitive not only due to low production costs, but also due to the high quality of products manufactured in the territory.

Paraguay has attracted increasing attention from foreigners, especially businesspeople, due to its tax incentives. The migration of Brazilian industries to Paraguay is one of these recent phenomena.

Last year alone, more than 17 thousand Brazilians obtained residence in the neighboring country, a record number that consolidates Paraguay as the main regional destination for those looking for less bureaucracy and lower operational costs.