1. Introduction to Paraguay
Paraguay, officially known as the Republic of Paraguay, is a landlocked country in South America. It is bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. Paraguay has a total land area of 406,752 square kilometers (157,048 square miles) and a population of approximately 7.3 million people. The capital and largest city is Asunción.
Paraguay has a rich and complex history. The country was first inhabited by indigenous peoples, including the Guaraní people. In the 16th century, Paraguay was colonized by Spain and became part of the Viceroyalty of Peru. Paraguay gained independence from Spain in 1811 and has been a republic since 1844.
2. Recent Significant Economic Developments
Paraguay's economy has been growing steadily in recent years. In 2022, the country's GDP grew by 4.2%, and it is projected to grow by 4.0% in 2023. The growth has been driven by strong performance in the agricultural, construction, and services sectors.
One of the most significant recent economic developments in Paraguay is the country's accession to the Pacific Alliance. The Pacific Alliance is a trade bloc that includes Chile, Colombia, Mexico, and Peru. Paraguay's accession to the bloc is expected to boost its trade and investment with other member countries.
3. Latest Adjustments to Tax Legislation
The Paraguayan government has made several changes to the country's tax legislation in recent years. These changes include:
- The introduction of a new value-added tax (VAT) rate of 10%.
- The reduction of the corporate income tax rate from 10% to 9%.
- The elimination of the withholding tax on dividends.
These changes are designed to make Paraguay more attractive to foreign investors and to boost economic growth.
If you are interested in learning more about Paraguay's tax legislation, please contact a qualified tax professional.
