Last October 17th, Attorneys of the Firm BKM I BERKEMEYER, Federico Valinotti and Jorge Figueredo Klein, offered a dissertation before the Paraguayan-American Chamber of Commerce (PANCHAM) regarding Decree No. 359/18 “By which the legal provisions regulating the Personal Income Tax (IRP) are specified and unified” issued on Friday, October 5th, 2018, mere days before the beginning of the submissions of tax returns for the settlement of the tax due for the fiscal year 2017.
In this regard, upon being invited by the PANCHAM, and after a brief introduction regarding the history of the Personal Income Tax in Paraguay offered by the heads of said Chamber, Mr. Roberto Chinan (President) and Dr. Daniel Elicetche, the aforementioned attorneys explained the process of the negotiations between the business sectors and accountants in representation of the private sector and the current authorities of the National Government, that ended with the signature of Decree No. 359/18 (which regulates the aforementioned tax), and also compared the changes included and the matters that were not affected with regards to the Decree previously in force, No. 6.560/16, which was then rendered invalid by Decree No. 359/18.
It is important to note that the issuance of the aforementioned regulations put an end to nearly two years of discussions and negotiations on the different interpretations of the way to settle the mentioned tax, which included the submission of a Non-Binding Query signed by all business sectors in the country, and several Unconstitutionality Actions. These are procedures in which the aforementioned attorneys have advised the National Chamber of Commerce and Services of Paraguay (CNCSPy) and by extent, the FEPRINCO (Federación de la Producción, la Industria y el Comercio – Federation for the Production, Industry, and Commerce) along with other prominent attorneys and accountants.
The dissertation had a significant attendance of professional accountants and attorneys as well as tax payers affected by the mentioned tax. The dissertation was open to not only members of the Chamber but also the general public, and ended with a Q&A segment which helped to clarify the most concerning aspects of the settlement of the tax as per the new regulation. The importance of the agreement achieved between the parties involved towards the legal certainty of the country was also highlighted.
For further information on the existing changes in Decree No. 359/2018 and the modifications with regards to the previous regime, please reach out to Federico Valinotti (Federico.valinotti@berke.com.py) and Jorge Figueredo (Jorge.figueredo@berke.com.py).
