Taxation in Paraguay

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A diversified economy has allowed economic expansion in recent years, driven by record agricultural production. Agriculture is so vital to Paraguay that the ruling party declared during the 2018 election that they would not raise taxes, as the farm sector is so crucial.

Thousands of farmers in Paraguay protested on Wednesday against a proposed 15 percent tax on soy, corn and wheat exports that will likely come to a vote in the Senate this week.

Paraguay President Fernando Lugo highlighted today his government´s political commitment to fighting money laundering and financing of terrorism at the opening of the Conference of the Financial Action Task Force of South America (GAFISUD).

Taiwan recently signed an agreement with Paraguay to mutually exempt income taxes on individuals of the two nations and/or that related to investments in both nations, aiming to avoid double taxation.

Paraguay is one of the few countries in the world with no income tax — and it looks like that won’t change anytime soon. The country’s senate on Thursday delayed the imposition of an income tax until 2013 — denying President Fernando Lugo the revenues he wants to fight crime and poverty.