Guarantee on investment law is enacted

By Alexander Berkemeyer, Berkemeyer Attorneys & Counselors

The draft law "On guarantees for investments and fostering job creation and economic and social development", proposed by the Executive has been finally sanctioned.

This legislation seeks to attract investment from domestic and foreign capital for use in productive projects in the country, in order to stimulate the economy and contribute to sustainable development by generating new jobs, the growth of industry and the incorporation of technology.

The key aspect of this Act is to authorize the immutability of the income tax rate for a basic period of 10 years, according to the type of investment and the amount invested. This period may be extended depending on the selected industry and the amount of the investment.

Paraguay is one of the countries with the lowest tax burden in the region and this law strengthens this circumstance, providing the necessary legal certainty to continue in this position.