The recent regulatory update that governs Law N° 4457/2012, amended by Law N° 7444/2025 and developed through Decree N° 4535/2025, marks a turning point in the Paraguayan business ecosystem. For the first time, our country has a comprehensive framework that not only promotes the formalization of micro, small, and medium-sized enterprises (MSMEs), but also grants them unprecedented tax, labor, and financial advantages.
Tax Benefits: Tax Relief and Simplified Regime
The package of tax incentives is probably the most attractive point for the sector:
• Full tax exemption for qualification and registration services provided by Central Government Agencies and decentralized entities, applicable to microenterprises during the first three years after the issuance of the MSME Certificate.
• Discounts of 75% (micro) and 50% (small) from the fourth year onwards on fees and tariffs for services of the Central Government, decentralized entities, regional governments, and municipalities.
• Simplified accounting: microenterprises can record their activity through a daily book of income and expenses, eliminating the burden of complex financial statements.
These advantages are activated only when the company is correctly registered in the National MSME Registry (RENAMIPYMES) and keeps its basic obligations up to date with the National Directorate of Tax Revenues (DNIT).
Streamlining Procedures: Digitalization and Single Window
The Unified System for Opening and Closing Companies (SUACE) is consolidated as the central platform that allows:
• To incorporate, modify, or close companies online, integrating RUC, municipal licenses, and labor records.
• To interoperate with RENAMIPYMES to generate, at no additional cost, the MSME Certificate —official document that certifies the business category and enables the foreseen benefits—.
By centralizing information in real time —in coordination with the DNIT, Ministry of Labor (MTESS) and Social Security Institute (IPS)— the terms and costs of formalization are significantly reduced.
Access to Financing and Promotion Programs
Decree N° 4535/2025 introduces decisive tools to resolve the historical credit gap:
• FONAMIPYMES Trust, designed to grant operating capital and productive investment at preferential rates.
• Promotion of reciprocal guarantee companies, which facilitate endorsements before banks and cooperatives.
• Incentives for innovation: deductions and co-financing programs for technological or research projects, articulated with CONACYT and MITIC.
Labor Facilities and Social Security
The differentiated labor regime balances worker protection with the reality of emerging ventures:
• Fixed-term contracts of up to 36 months, with simplified registration procedures.
• Payment of up to 80% of the legal minimum wage during the first three years for microenterprises, reducing the initial payroll cost.
• Inclusion of the owner-employer in the health insurance and retirement of the IPS, promoting formality and social coverage.
5. Key points to maximize benefits
• Correct classification: number of employees and annual turnover determine the category (micro, small or medium) and, therefore, the scope of the incentives.
• Timely compliance: any tax or labor delinquency automatically suspends the benefits until its regularization.
• Annual renewal: the MSME Certificate is valid for 12 months and is renewed with the updating of data before RENAMIPYMES.
• Municipal synergy: the commercial patent may be subject to exemptions or discounts; it is advisable to verify the adhesion of the municipality and the documentary requirements.
• Training as a lifeline: the regulations allow to replace, for once, certain formal fines through certified courses —an option to avoid economic sanctions—.
How can BKM | BERKEMEYER help you?
Our multidisciplinary team, with leading practice in corporate, financial, tax and labor law, offers comprehensive support that includes:
• Eligibility diagnosis and corporate structuring to qualify as MSMEs without compromising future expansion plans.
• Complete management of the SUACE process, registration in RENAMIPYMES and obtaining the MSME Certificate.
• Negotiation and processing of FONAMIPYMES or private banking credit lines, including guarantee contracts and due diligence.
• Implementation of labor policies under the special regime: contracts, internal regulations and compliance audits before MTESS and IPS.
• Advice on public procurement, so that your company can access tenders with preferential treatment.
The MSME Law opens an unprecedented window to reduce costs, access capital and professionalize business management in Paraguay. However, each incentive requires precise steps and times, as well as meticulous legal and fiscal planning.
At BKM | BERKEMEYER we have the experience, legal knowledge and strategic vision necessary for your business to take full advantage of this new scenario.
For more information, please contact: Carla Sosa: carla.sosa@berke.com.py and/or Antonio Villa Berkemeyer: antonio.villa@berke.com.py and/or Luciano Antonelli: luciano.antonelli@berke.com.py
