The Paraguayan Ministry of Finance, led by Óscar Llamosas, will be in charge of drafting a new tax reform in the country. Among the issues to be taken into account for 2021, the State Undersecretariat of Taxation (SET) will review a gambling tax.
Despite the economic contraction on a global level, and with catastrophic projections in different Latin American jurisdictions, Paraguay experienced flat results in October, as it reported $156.7m in collected taxes, virtually the same as in 2019.
SET foresees that in November, it will perceive $213.7m, which would also tie the results that they registered in the same period last year.
In an interview with Radio Nacional del Paraguay, the Deputy Minister of Taxation, Oscar Orué, highlighted that revenues have decreased by 25% in the country, while in other countries in the region, they have dropped by 40%.
Orué said: “Our taxes [aren’t that high] and that also helps people to comply with their tax obligations. It also adds to the flexibilities that we had previously announced and that are currently a great help.”
However, Orué assured that before they introduce a tax reform in 2021, they need to implement different measures, including a new gambling tax and a new tax on the income of non-residents for digital services.
On December 30, 2019, the executive branch issued Decree 3184/18, which set that revenue from prizes higher than $70 will be subject to the Personal Income Tax (IRP). The tax proposed for the new tax reform would come into effect by January 1, 2021.
