On Monday, September 8, 2025, three highly relevant regulations for the country’s productive and investment ecosystem were published in the Official Gazette of the Republic of Paraguay. These are Law N\u00b0 7546, \u201cWhich establishes the national policy for the production and assembly of electrical, electronic, electromechanical, and digital equipment,\u201d Law N\u00b0 7547, \u201cOn the Maquila Regime,\u201d and Law N\u00b0 7548, \u201cWhich establishes the new tax incentive regime for national and foreign investment.\u201d These provisions constitute pillars of a state strategy aimed at attracting capital, generating formal employment, and positioning Paraguay as an industrial and logistics hub in the region. <\/p>\n\n
Below is a summary of each law with a brief analysis of the provisions: <\/p>\n\n
Law N\u00b0 7546, \u201cWhich establishes the national policy for the production and assembly of electrical, electronic, electromechanical, and digital equipment\u201d<\/strong> <\/p>\n\n Law N\u00b0 7546 creates a specific regime for the manufacture and assembly of electrical, electronic, electromechanical, and digital equipment within Paraguayan territory. <\/p>\n\n Among the central axes of the law, the following stand out: <\/p>\n\n \u2022 Precise definition of eligible capital goods and materials. <\/p>\n\n \u2022 Tariff exemptions and VAT reduction for both the import and local acquisition of inputs and capital goods. <\/p>\n\n \u2022 Rules of compatibility and incompatibility with other tax incentives. <\/p>\n\n \u2022 Conditions of access and permanence that require: 20% of national added value, generation of formal employment, incorporation of efficient technologies, and technology transfer programs. <\/p>\n\n \u2022 Term of validity of the benefits: 20 years, extendable for an equal period. <\/p>\n\n \u2022 Dual monitoring system (in situ and extra situ) and corrective measures that can be graduated up to the revocation of benefits. <\/p>\n\n Impact and opportunity assessment<\/em><\/strong> <\/p>\n\n Law N\u00b0 7547, \u201cOn the Maquila Regime\u201d<\/strong> <\/p>\n\n The new law repeals and replaces the 1997 regulations, comprehensively modernizing the maquila regime. <\/p>\n\n Some important aspects of the new provision are: <\/p>\n\n \u2022 Single Tax of 1% on the value added in Paraguay or on the amount of export invoicing, whichever is greater. <\/p>\n\n \u2022 Temporary admission without taxes of raw materials, intermediate goods, machinery, and equipment. <\/p>\n\n \u2022 The following modalities are maintained: pure maquila, by idle capacity, submaquila, and shelter modality. <\/p>\n\n \u2022 The Maquila of services is defined with better scope: regime by virtue of which a Maquiladora uses its installed capacity and its processes to provide services to another foreign company, incorporating national added value, within the framework of a Maquila Contract, through the use and exploitation of information and communication technologies or other remote means. <\/p>\n\n \u2022 The right to the refund of \u201cVAT fiscal credit\u201d for exporters is recognized, guaranteeing liquidity to companies that operate under the regime. With limitations for the \u201cmaquila of services\u201d. <\/p>\n\n \u2022Virtual operation: The transfer of goods temporarily imported or the product resulting from the production process, which takes place between maquila companies, is allowed in order to use them for the fulfillment of their respective programs. The aforementioned operations are equated in all their effects, requirements, and legal consequences to the temporary import Maquila, the temporary export Maquila, and the export Maquila. <\/p>\n\n \u2022 Maximum term of benefits: 20 years, with successive renewals. <\/p>\n\n \u2022 National Council of Export Maquila Industries (CNIME) as a coordinating technical entity and an Executive Secretariat with broad operational powers. <\/p>\n\n \u2022 Pure maquiladoras are allowed to sell to the domestic market up to 10% of the volume exported in the last year, after nationalization and payment of internal taxes. <\/p>\n\n \u2022 Escalated sanctioning procedure with fines, suspension, and cancellation. <\/p>\n\n Impact and opportunity assessment<\/em><\/strong> <\/p>\n\n Law N\u00b0 7548, \u201cWhich establishes the new tax incentive regime for national and foreign investment\u201d<\/strong> <\/p>\n\n This regulation replaces the historical Law 60\/90 and updates the incentives for productive investments. <\/p>\n\n Some of the main thematic axes of the new provision are: <\/p>\n\n \u2022 Exoneration of customs tax and VAT on the import of capital goods, raw materials, and inputs destined for the investment project, applied directly to the industrial, agricultural, or service production cycle, except for fees for services actually provided. <\/p>\n\n \u2022 VAT exemption on the local purchase of goods destined for the industrial or agricultural production cycle. <\/p>\n\n \u2022Exoneration of VAT, in the first transfer of capital goods that have been imported or acquired from national manufacturers under this tax incentive regime. This exemption will apply exclusively when the transfer of ownership of said goods is carried out between the beneficiaries of this law. <\/p>\n\n \u2022 Exoneration of the Non-Resident Income Tax (INR) on interest from external financing and the IDU on dividends generated by projects whose investment is at least USD 13 million (updatable by CPI). <\/p>\n\n \u2022Exoneration of customs tax and VAT on the import of capital goods for investment projects destined for large-scale tourism and entertainment services, provided that the investment is at least USD 20 million. <\/p>\n\n \u2022 General term of benefits: 20 years, with the possibility of partial renewals according to new investments. <\/p>\n\n \u2022 Investment Council as a technical evaluation body; Executive Secretariat in the Ministry of Industry and Commerce. <\/p>\n\n \u2022 Legal terms: opinion of the Investment Council in 60 days and bi-ministerial resolution (MIC\u2013MEF) in 15 days. <\/p>\n\n \u2022 Possibility of complementing investments, transferring capital goods, whether imported or produced by national manufacturers, between beneficiaries of the regime who have Biministerial resolutions, without the transferring beneficiary having to pay the taxes originally exempted at the time of import or acquisition. <\/p>\n\n \u2022Possibility of establishing a guarantee trust with the capital goods that enjoy tax benefits to finance their current investment projects. <\/p>\n\n \u2022 Strict monitoring mechanisms and staggered revocation in the event of non-compliance. <\/p>\n\n Impact and opportunity assessment<\/em><\/strong> <\/p>\n\n Recommendations for entrepreneurs and investors<\/strong> <\/p>\n\n \u2022 Eligibility Due Diligence<\/strong>: analyze supply chains, the proportion of local added value, and the possibility of simultaneously taking advantage of the incentives of Laws No. 7546 and 7547, or adhering to the general regime of Law No. 7548. <\/p>\n\n \u2022 Early financial structuring<\/strong>: evaluate the use of international financing to access INR exemption and implement trust structures to maximize capital efficiency. <\/p>\n\n \u2022 Comprehensive tax planning<\/strong>: model comparative tax burden scenarios under the different regimes, considering incompatibilities and asset maintenance requirements. <\/p>\n\n \u2022 Compliance management and reporting<\/strong>: design internal control systems that facilitate the presentation of periodic information and mitigate revocation risks. <\/p>\n\n \u2022 Monitoring of amount updates<\/strong>: closely monitor IPC adjustments to determine the optimal time to present new projects or expansions. <\/p>\n\n What do the new Laws leave us?<\/strong> <\/p>\n\n This normative triad reinforces the country’s strategy of fiscal competitiveness, legal certainty and capital attraction. Law No. 7546 creates a niche with incentives for technology manufacturing; Law No. 7547 modernizes and expands the Maquila regime, maintaining a single tax of 1%, while Law No. 7548 updates the general framework of incentives, extending exemptions to income and external financing. <\/p>\n\n The synergy between these laws positions Paraguay as a preferential location for nearshoring, relocation of value chains, and development of brownfield and greenfield projects. Entrepreneurs and investors who plan their operations with a comprehensive vision of these regimes will be able to optimize their cost structure, access international markets with competitive advantages, and contribute to the country’s sustainable economic development. <\/p>\n\n The BKM | BERKEMEYER team is available to delve into any regulatory, tax or corporate aspect related to these new provisions and to support our clients in the successful structuring and execution of their investment projects. <\/p>\n\n For more information, please contact Luciano Antonelli: luciano.antonelli@berke.com.py<\/a> and\/or Antonio Villa Berkemeyer: antonio.villa@berke.com.py<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":" On Monday, September 8, 2025, three highly relevant regulations for the country’s productive and investment ecosystem were published in the Official Gazette of the Republic of Paraguay. These are Law N\u00b0 7546, \u201cWhich establishes the national policy for the production and assembly of electrical, electronic, electromechanical, and digital equipment,\u201d Law N\u00b0 7547, \u201cOn the MaquilaContinue reading “New Regulatory Instruments to Boost Industry and Investment in Paraguay”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[65],"tags":[],"class_list":["post-6555","post","type-post","status-publish","format-standard","hentry","category-berke-report","entry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/posts\/6555","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/comments?post=6555"}],"version-history":[{"count":1,"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/posts\/6555\/revisions"}],"predecessor-version":[{"id":6556,"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/posts\/6555\/revisions\/6556"}],"wp:attachment":[{"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/media?parent=6555"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/categories?post=6555"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.berke.com.py\/en\/wp-json\/wp\/v2\/tags?post=6555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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