Where is it located?
It is a latin American country located in the central zone of South America. Its territory is politically subdivided into 17 departments and one capital district, its capital is the city of Asuncion.
What is the per capita income?
In 2015, the income was US $ 4,427, wich increased to US $ 4,655 in 2016
What are the main production and export sectors?
The agricultural, commercial and service sectors. The industrial sector is moderately developed, and is mainly based on the processing of agricultural and livestock goods.
What are the main industries?
The pharmaceutical industry, metalworking industry and electric power production.
What is the capacity of electric power generation?
The country’s electricity production capacity (close to 60,000 GWh / year) is one of the largest in the world in per capita electricity generation (9,000 kWh per inhabitant) and is used in less than 16% of the market national electricity.
What are the official languages?
The two official languages are Spanish and Guarani.
What is the currency?
The current legal tender of Paraguay and the oldest legal tender in South America is the Guarani (plural: Guaranies)
What is the exchange rate against the dollar?
1 USD = 5659.36149 PYG
Which are the main airports?
- Silvio Pettirossi International Airport (Asunción)
- Aeropuerto Internacional Guaraní (Ciudad del Este)
Which countries border Paraguay?
Argentina to the southeast, Bolivia to the north and Brazil to the east.
What are the regional blocs?
- The Common Market of the South (Mercosur)
- Focem (Fund of Structural Convergence of MERCOSUR)
What is copyright?
Rights granted to the creator/s over their original literary and artistic works. Works that lend themselves to copyright protection extend to books, music, paintings, sculptures, films, computer programs, databases, commercials, maps and technical drawings.
What can be protected by copyright?
The legislation does not usually contain an exhaustive list of works covered by copyright; however, the works usually protected by copyright worldwide are the following:
- Literary works such as novels, poems, scenic representations, reference works, journalistic articles;
- software and databases;
- Movies, musical compositions and choreographies;
- Artistic works such as paintings, drawings, photographs and sculptures;
- Architecture; and
- Ads, maps and technical drawings.
Copyright protection encompass only the expressions, not being the case for the ideas, procedures, methods of operation or mathematical concepts with each other. Copyright may protect or not elements such as titles, slogans or logos, depending on whether the paternity of the work is sufficient.
What rights are covered under the copyright law? What rights does the author of a work enjoy?
Copyright covers two types of rights:
- Exclusive rights, which allow the right holder to authorize or deny the use of their original work over a possible compensation
- moral rights, which protect the non-patrimonial interests of the author.
In most cases, copyright law stipulates that the right holder has the right to authorize or prevent certain uses of the work or to receive remuneration for the use of the work. (eg through collective management). The owner of the patrimonial rights of a work can prohibit or authorize:
- the reproduction of his work in various forms, such as printed publication or sound recording;
- public performance, for example in a dramatic or musical play;
- the recording of the work, for example in CD or DVD formats;
- the broadcasting of the work by radio, cable or satellite;
- translation of the work into other languages; and
- the adaptation of the work, as in the case of a novel adapted for a script.
Examples of universally recognized moral rights include the right to claim paternity of the work and the right to oppose any modification of the work that could harm the reputation of the creator.
What does “grant a license” mean for a work and how can a license be granted?
The owner of the rights of a work may authorize third parties to use or exploit such work. Such authorizations are often referred to as “licenses” and may or may not require remuneration from the rights holder. Logically, when negotiating a license agreement it is recommended to seek legal advice.
If you wish to license your works to users such as broadcasters, editors, or even recreational establishments, from bars to night clubs, a good solution could be to join a collective management body. Collective management bodies supervise the use of works on behalf of creators and are responsible for negotiating licenses and collecting royalties. Such bodies are particularly frequent in the field of musical and literary works where there may be a large number of users of the same work and it would be difficult for both users and the rightholder to obtain the specific authorization for each use, and to monitor the different uses.
How are copyright transferred?
Patrimonial rights are transferred through the following modalities indicated in the law, namely:
Inter vivos
- Contract for transfer of rights (Article 183 of Law 23 of 1982).
- Works made for hire (Article 20 of Law 23 of 1982).
By law:
- Works created by public officials (Article 91 of Law 23 of 1982).
- Collective works (Article 92 of Law 23 of 1982).
- Post mortem (Article 21 of Law 23 of 1982).
What is the difference between “Author” and “Holder”?
The author is the natural person who creates the intellectual work and to whom will indefinitely correspond the moral rights; the author shall in turn be the owner of the economic rights, provided that there has not been a transfer of the same by an inter vivos act or law. The holder has in his property the economic rights that derive from the work, being able to be the author or a different natural or legal person.
What is a Trademark?
A Trademark is a distinctive sign indicating that some goods or services have been produced or provided by a particular person or company. Its origin goes back to antiquity, when artisans reproduce their signatures or “marks” in their utilitarian or artistic products. Over the years, these brands have evolved to configure the current trademark registration and protection system. The system helps consumers identify and buy a product or service that, by its character and quality, indicated by its unique brand, is adapted to their needs.
Why register a Trademark?
A registered trademark gives the exclusive use of that name, allowing its owner:
- Create a “Brand Value”, an intangible asset for the company
- Grant licenses, franchises and obtain perks
- Differentiate from competition
- Protect against third parties using an equal or similar name, exercising the corresponding legal actions
- Protect the domain name on the Internet
- Prevent others from trying to file a Trademark application similar to yours
- Priority to third parties who want to register their Trademark, in countries where you do not have registered
Trademark classification
When applying a Trademark registration, you must specify what products and services you want to use that brand. The vast majority of countries in the world have adopted the Niza International Classification. This classification groups all products and services into 45 classes, 1- 34 for products, 35-45 for services – allowing you to specify clearly and precisely the coverage of your brand. The protection granted to a registered Trademark covers only the specific classes at the time of registration, so that two identical Trademarks may coexist in different classes. Trademark registrations are charged by class, therefore to greater protection, greater investment.
In wich countries should I apply for a Trademark registration?
The Trademark protection is territorial, therefore it is convenient to apply for it´s registration in the country or countries in wich the owners business has been or will be established.
What is a patent?
A patent is an exclusive right that is granted on an invention. That is, a patent is an exclusive right that is granted on a product or process that, generally, offers a new way of doing something or a new technical solution to a problem. To obtain a patent, a request must be made in which technical information about the invention is publicly disclosed.
The patentee may authorize or grant a license to a third party to use his invention, under mutually agreed terms. The holder may also transfer the right to the invention to a third party, which will thus become the new owner of the patent. When the patent expires, the conferred protection ends and the invention passes into the public domain; in other words, the invention may be commercially exploited without infringing the patent.
What rights does a patent confer?
The holder of a patent has the right to decide who can use the patented invention during the period of protection. In other words, patent protection means that an invention cannot be produced, used or distributed for commercial purposes, nor sold, without the consent of the patentee.
How long does the protection granted by a patent last?
Patent protection is granted for a limited period, which is usually 20 years from the filing date of the application.
Is the patent valid throughout the world?
Patents are territorial rights. The corresponding exclusive rights are generally valid only in the country or region in which the application was filed and the patent has been granted in accordance with the regulations of that country or region.
What is an industrial design?
An industrial design constitutes the ornamental or aesthetic aspect of an article. The drawing may consist of three-dimensional features, such as the shape or surface of an article, or in two-dimensional features such as patterns, lines, or colors.
What types of products can be protected as industrial designs?
Industrial designs apply to a wide variety of industry and handicraft products, ranging from technical and medical instruments to watches, jewelry and other luxury items; from electrical appliances to vehicles and architectural structures, and from textiles to recreational goods.
Why are industrial designs protected?
Industrial designs make a product attractive and eye-catching; consequently, increase the commercial value of the product as well as its sales potential.
The protection of an industrial design helps to increase the return on invested capital. An effective system of protection also benefits consumers and the general public as it promotes fair competition and honest commercial practices.
The protection of industrial designs contributes to the promotion of economic development, encouraging creativity in industrial and manufacturing sectors, and contributes to the expansion of commercial activity and the promotion of the export of domestic products.
I am a national foreigner of MERCOSUR, one of my parents or both are Paraguayans. What are the steps to follow to get my residence?
You can benefit from Law 2193/2003 – “That authorizes the National Police to issue identity cards to foreigners who are spouses of Paraguayans and foreigners who are the children of Paraguayan parents.”
To do this, you must call the Identification Department of the National Police to obtain information about the requirements that must be presented and, once issued the Paraguayan Identity Card, the Identification Department will send the file of the foreigners benefited by this law to the Directorate General Direction of Migrations; with which the foreigner can start the application to obtain the permanent registration card.
OBSERVATION: As a Paraguayan child, you can go to the Repatriates Secretariat to obtain the “Certificate of Repatriation”, with which you will obtain the benefit of exemption from fees in the Public Institutions of Paraguay (Paraguayan Consulates, Ministry of Relations Foreign Affairs, General Directorate of Migration, etc.). If you do not have the Certificate of Repatriation, you must pay the corresponding fees.
I am a foreigner, married to a Paraguayan in my country of origin. How can I get my residence?
Option 1:
You can benefit from Law 2193/2003 – “That authorizes the National Police to issue identity cards to foreigners who are spouses of Paraguayans and foreigners who are the children of Paraguayan parents.”
To do this, you must call the Identification Department of the National Police to obtain information about the requirements that must be presented and, once issued the Paraguayan Identity Card, the Identification Department will send the file of the foreigners benefited by this law to the General Directorate of Migrations; with which you can start the application to obtain the Permanent Registration card.
Option 2:
You can also access the Permanent Residence by Law 978/96 on Migration, as established in Chapter III, in compliance with Articles 133 and 134:
Article 133.- The children of a Paraguayan mother or father born abroad, until they decide on the option established in Article 146 “in fine” of the National Constitution, and the spouses of Paraguayans, will be able to settle permanently in the country.
Article 134.- The documents required for the definitive residence of the spouses and children of Paraguayans born abroad are as follows:
1) Birth certificate issued by the Civil Registry of the country of origin;
2) Identity document identifying them, from the country of origin;
3) For the children of Paraguayans, document or certificate of birth of one of the parents proving their status as a natural or naturalized Paraguayan;
4) Certificate issued by the sanitary authority of the country;
5) Document proving the status of Paraguayan spouse and marriage certificate.
OBSERVATION: As a Paraguayan spouse married abroad, you can go to the Ministry of Development for Returnees to obtain the “Certificate of Repatriation”, with which you will obtain the benefit of exemption from fees in the Public Institutions of Paraguay (Paraguayan Consulates, Ministry of Foreign Affairs, General Directorate of Migrations, etc.). If you do not have the Certificate of Repatriation, you must pay the corresponding fees.
If I am a foreigner, married to a Paraguayan in Paraguay, what are the steps that I must follow to process my residence?
Option 1:
You can benefit from Law 2193/2003 – “That authorizes the National Police to issue identity cards to foreigners who are spouses of Paraguayans and to foreigners who are the children of Paraguayan parents.” – For this purpose, you must go to the Identification Department of the Police National to obtain the requirements.
Once issued the Paraguayan Identity Card, the Identification Department will send the file of foreigners benefited with this law to the General Directorate of Migration; with which the foreigner can initiate the request to obtain the permanent registration card.
Option 2:
You can also access the Permanent Residence by Law 978/96 on Migration, as established in Article 46:
Article 46.- Foreigners who are in the national territory request the immigration authority to be admitted as permanent or temporary residents, must submit the following documents:
a) Document that proves its identity;
b) Birth certificate and civil status or supplementary evidence produced in accordance with national legislation;
c) Certificate of criminal or police records of the country of origin or of his residence, of the last five years. Children under 14 years old are excepted;
d) Medical certificate issued by health authorities indicated by the Ministry of Public Health and Social Welfare, establishing their psychophysical condition;
e) Professional title or certificate attesting to their trade, activity or economic solvency;
f) Proof of their entry and stay in the country;
g) The affidavit mentioned in Article 23;
h) Certificate or proof of economic solvency; and,
i) Other documentation required by law.
If I am Paraguayan; my son was born abroad and I want him to have his residence in Paraguay. What are the steps and requirements?
It can benefit from Law 2193/2003 – “That authorizes the National Police to issue identity cards to foreigners who are spouses of Paraguayans and to foreigners who are the children of Paraguayan parents.” – For this purpose, you must call the Identification Department of the Police National to obtain the requirements.
Once issued the Paraguayan Identity Card, the Identification Department will send the file of foreigners benefited with this law to the General Directorate of Migration; with which the foreigner can initiate the request to obtain the Permanent Registration card.
OBSERVATION: As a Paraguayan child, you can use the Ministry of Development for Returnees to obtain the “Certificate of Repatriation”, with which you will obtain the benefit of exemption from fees in the Paraguayan Public Institutions (Paraguayan Consulates, Ministry Foreign Affairs, General Directorate of Migration, etc.). If you do not have the Certificate of Repatriation, you must pay the corresponding fees.
Where is the procedure for the change of nationality carried out?
The process to obtain Paraguayan nationality is done in the judiciary. The National Constitution establishes, in Article 148 – Of the nationality by naturalization that “Foreigners may obtain Paraguayan nationality by naturalization if they meet the following requirements:
1) majority of age;
2) minimum establishment of three years in national territory;
3) regular exercise in the country of any profession, trade, science, art or industry, and
4) Good conduct, defined in law.
What is Social Security according to the National Constitution?
Article 95º. The compulsory and comprehensive Social Security System for the dependent worker and his or her family shall be established by law. It will be promoted to all sectors of the population. The services of the Social Security system may be public, private or mixed, and in all cases will be supervised by the State. The financial resources of social insurance will not be diverted from their specific purposes and will be available for this purpose, without prejudice to the lucrative investments that may increase their assets.
What is the purpose of Social Security?
The objective of Social Security is to ensure that people who are unable, either temporarily or permanently, to obtain income or to assume exceptional financial responsibilities, can continue to meet their needs by providing them, to that end, financial resources or certain goods or services
What are the institutions that are part of social security?
The General Directorate of Social Security of the Ministry of Labor, Employment and Social Security, the Institute of Social Security, the Fiscal Fund, perform complementary functions of Social Security.
What is the percentage that the contributing worker owes for Social Security?
Nine percent (9%) of the remuneration received monthly.
How is the contributory scheme financed?
With the contributions of the worker and the employer. The worker contributes 9% and the employer 16.5% on the remunerations received on a monthly basis by the worker.
What does Social Security include?
As can be seen, Social Security seeks to protect individuals against expected or unexpected circumstances, permanent or temporary, that diminish the economic capacity of the individual and against which it is prudent to establish preventive and restorative mechanisms, financed jointly by the State, employers and workers.
The risks or contingencies that trigger the protection of Social Security can be classified as follows:
- Disability, old age and death;
- Common illness and / or accident;
- Maternity;
- Illness and / or work accident;
- Unemployment
What is Letterhead? Why is that required?
Letterhead is the authorization granted by the Tax Administration (SET) for taxpayers to print and issue: Sales Receipts: Invoices, sales invoices, auto invoice, ticket, entry to public shows, transportation tickets, lottery tickets and games of chance
Complementary Documents: Debit and Credit Notes
Remittance Notes: Retention Proofs
What is Value Added Tax?
It is a consumption tax that aims to tax the part of value that is added to a good at each stage of the production and marketing process. That is, it taxes all phases of: Production and Commercialization of Goods and Services until it reaches the Final Consumer, but not over the whole, but only on the part of the Value Added in each of the Stages.
What is the Value Added at each stage of production and commercialization?
To understand the structure of IVA adopted by Law No. 125/91 and most countries, we must understand the concept of “Value Added”, for which it is necessary to remember some basic economic concepts. It is well known that, from the point of view of the “company” or “natural person providing a service” its “product or service” is the result of applying to certain SUPPLIES, the factors of production: CAPITAL AND WORK.
How is the “tax debt” formed?
The law and regulations themselves indicate how the Tax Debt is formed or constituted. This is also known as the “Sales Tax”. In summary, we can say that it is formed with the total IVA corresponding to the income from the sale of goods or services rendered during the month to which they correspond and that they are properly documented. IVA is taken into account at the rate of 5% and at the rate of 10%. This must be registered in the “Sales Book”. If they are products exempted from IVA are also taken into account for the aforementioned “apportionment”. For its part, Decree No. 6806/05 amended by Decree No. 8345/06, in Article 22, provides: “Settlement of Tax. The tax will be determined using the accrual criterion, by difference between the Tax Debit and the Tax Credit corresponding to the month that is settled “.
What is the Accrual Criteria?
This means that when the invoice is issued, whether cash or credit, pay or not pay the customer / acquirer, the obligation to include it in Form No. 120, which is the one used to pay IVA, is born. This does not happen in Personal Income tax, which uses the Criterion of Perceived.
When should the IVA be invoiced?
This is what the Law calls “Birth of the Tax Obligation” and is legislated in Article 80 of Law No. 125/91, in the following terms:
Article 80º Birth of the Tax Obligation: “The configuration of the taxable event occurs with the delivery of the asset, issue of the invoice or equivalent, whichever was earlier. In the case of Public Services, the configuration of the birth of the tax obligation will occur when the deadline for payment of the fixed price occurs.
The affectation to the personal use or consumption is perfected in the moment of the retirement of the goods.
When should IVA be invoiced?
- On sale
- In the goods withdrawal
- In the provision of general services
- In the provision of public services
- Interest payments
What is deducted first: Expenses or investments?
First deduct the expenses, and then the investments. Contributing attention: You must differentiate expenses and investments if you want to offset the tax losses produced by the latter.
What do I pay to domestic helpers? Is it deductible in the IRP?
The IRP law provides as a deductible expense discounts and / or legal contributions to social security entities such as IPS, so that you as a taxpayer can deduct the payments you make as wages to your domestic workers, provided that make the contribution to the IPS for these amounts.
Remember: According to Article 148 of the Labor Code, domestic workers are considered to be persons of the two sexes who habitually perform the cleaning, attendance and other duties of the interior service of a house or other place of residence or room particular.
What if I want to open my business with someone else?
For businesses of two or more people, there is also the option to set up commercial companies, such as SRL, SA, Comandita Society Simple or Actions, in which the responsibility falls mainly on the assets (equity) of the firm and in some specific cases the legal representatives: directors, managers, administrators, among others.
What do I do if I want to rent real estate?
In addition there are activities of natural persons that are considered business, as the rental of real estate. Let’s see a practical example, is it convenient to transfer all properties to a company? Many times a decision like this can significantly change the tax that has to be paid. If the buildings are maintained in the name of natural persons, by the lease of real estate, the owner must pay as Income Tax 4.35% direct on the amount of the lease fee received throughout the year, excluding the IVA which is 5% of the rental price. However, if you decide to set up a SRL or an SA and transfer all the assets to it, you will not be able to tax on a presumed basis (system allowed for natural persons, condos and undivided estates) and must pay the 10% rent, if you decide not to distribute dividends and profits, and a percentage of 14.5% if you decide to do so.
Commercial or personal activity?
In tax matters there is a great difference between commercial, industrial or non-personal services with activities that are considered “personal”. And knowing this is extremely important to be able to properly register in the tax that corresponds to pay. The difference in terms of “personal services” or “business or commercial services” is that the latter concept takes into account two factors of production: “capital” and “work” and in personal services although some capital is required, the most important is “work.”
What taxes do these people pay for personal services?
They pay VAT and / or possibly the Personal Income Tax, in case they work independently. The professionals, regardless of the amount of their billing, for the effective exercise of their profession, unless they work in a dependent way and contribute to the IPS or another Social Security Fund. Those who perform arts and crafts if in 2012 have won more than 12 minimum wages, an approximate amount of G. 20,000,000 signing the corresponding self-invoicing; to work in 2013 must be recorded in the IVA. In the following years, the same rule applies. Recalling the modalities for work
What exacerbates the personal income tax?
- The exercise of professions or the provision of personal services of any kind, independently or in an independent relationship (both public and private)
- The profit from the occasional sale of real estate
How is personal income paid?
- Tax of 10% (For those who earn more than 10 minimum wages per month)
- Tax of 8% (For those who earn less than 10 minimum wages per month)
