paraguay land of opportunities
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Brochure | InvestmentTRANSCRIPT
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
Message from the Ambassador
Located at the heart of the South American continent, Paraguay's outstanding and consistent economic growth in recent times has attracted the attention of investors and businesses not only from the surrounding countries, but also from the entire world.
In 2013, Paraguay's Gross Domestic Product (GDP) growth was at 13.6% outpacing most economies in the region and world, achieved mainly by the production of more than nine million tons of soybean (fourth largest exporter in the world) and a record export of high quality beef (sixth largest exporter in the world). In addition Paraguay is the second largest stevia producer, sixth largest producer of corn, and 10th largest exporter of wheat making it an agricultural and meat production powerhouse.
In addition, to accelerate the modernization of the country’s main infrastructures, an estimated US$ 75 billion investment will be deployed by 2017 in airports, roads, and ports, which in itself is projected to sustain a 6-7% GDP growth.
�e consistent macroeconomic stability (historically low in�ation rate, 22.6% of GDP in international reserves [Sep. 2014] and twice the amount of the total foreign debt), free market based currency exchange and free unrestricted �ow of capital, lowest tax rates in the region for businesses and one of the most
南米の中心部に位置するパラグアイは近年急成長を遂げており、近隣国ばかりでなく、世界各国から注目を集めております。
2013年には13.6%という南米地域は無論、世界各国との比較でも高い経済成長率を記録し、これは主産業の900万トンを超す大豆生産(世界第4の輸出国)を始め、良質の記録的牛肉生産と輸出に依るものであります。そして、世界第6位のトウモロコシ、10位の小麦、2位のステビアも含めて、世界の農産物主要輸出国と肩を並べるまでになりました。
更に、空港、道路、河川港などのインフラ整備を加速するために、2017年迄に750億ドルの投資を行い、年平均6~7%の経済成長率を予想しています。
1
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
大使の挨拶
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
advantageous tax incentive laws for direct foreign investment in the region, young and abundant labor force, ample clean and renewable energy from hydroelectric power, and strategic location to service the main economies in Mercosur, Brazil and Argentina, contribute to making Paraguay a high priority for investments.
One particular and critical advantage point for Japanese companies is that very few countries in the region have such deep and strong ties to Japan like Paraguay; a history that started with the long and successful immigration of Japanese citizens to the country and their valuable and highly recognized and appreciat-ed contribution to the development of the country and the many years of the Japanese government's �nancial, technical, and economic aid to Paraguay.
It is my hope that this small publication aids you in reviewing and concluding like many others, that Paraguay is a true land of opportunities for your endeavors.
Naoyuki ToyotoshiAmbassador of the Republic of Paraguay
パラグアイはマクロ経済の安定(低いインフレ率、外貨準備額はGDPの22.6%で外債の2倍以上)、自由な為替金融政策、低率な税制と投資に対する税優遇策、若い豊富な労働力、豊富で安価な水力発電によるクリーンエネルギー、メルコスールの戦略的位置にあり、アルゼンチン、ブラジルの大市場へのアクセス、等々で投資環境は高い評価を得ています。
また、長年に亘る日本人移住者の活躍と、日本政府からの経済援助のお陰で、パラグアイ日本の友好関係は比類のない深い絆で結ばれており、日本企業にとっては有利な条件と言えるでしょう。
この小冊がパラグアイは皆様にとって本当にチャンスのある国であることをご理解いただける上で少しでもお役に立てれば幸いです。
駐日パラグアイ共和国大使館特命全権大使
トヨトシ ナオユキ
Paraguay Area (km²)
406,752
O�cial Languages
Spanish and Guarani
Currency
Guarani (since 1943)
Population (2013)
6,709,730
Nominal Gross Domestic Product (GDP)Year 2013
US$ 29.6 billion
Nominal Gross Domestic Product (GDP Per Capita)Year 2013
US$ 4,368
Capital
Asuncion
Other cities and major economic areas
Ciudad del Este, Encarnacion, Salto del Guaira, Coronel Oviedo, Concepcion, Santa Rita
Economically Active Population – EAP (2013)
3,215,510 62.6% of population
Rate of unemployment (2013)
5.6% of the EAP
The Republic of Paraguay, located in the heart of South America, o�ers a unique set of opportuni-ties for investors who are trying to obtain the best cost-benefit investment. Paraguay provides not only abundant and low cost natural energy and labor resources, but also a strategic location that enables access to the most important markets with the highest income in the region. All this is o�ered in a national legal framework that welcomes foreign investment in a positive and stable economic environment.
2
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
パラグアイ共和国は南米の中心部に位置し、ビジネスにおいて最善のコスト-ベネフィット(費用対効果)の割合を追及する投資家にとって、他に追随を許さないほどチャンスを見出せる国である。パラグアイは単に豊富なクリーンエネルギーや安価な労働力を提供するのみならず、地域内で最も収入の高い重要な市場への進出に対して戦略的な位置を占めている。パラグアイは外国投資に開放された法的枠組と、安定し前向きな展望に恵まれる経済環境の下で上記のあらゆる利点を提供できる。
パラグアイ
面積 (km²)
公用語
通貨
人口 (2013年)
首都
その他主要都市
労働力人口‒ EAP (2013年):
失業率(2013年)
人口の62.6%
労働力人口の5.6%
GDP 2013年
スペイン語、グアラニー語
アスンシオン
グアラニー (1943年から)
(US$ 100万単位) US$ 29.600
一人当たりのGDP 2013年
US$ 4.368
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
The friendly relationship between Japan and Paraguay has also been strength-ened by the O�cial Development Assis-tance (ODA) provided by the Government of Japan to the Government of Paraguay since 1959. This assistance, mainly implemented through the Japan Interna-tional Cooperation Agency (JICA), consists of the provision of technical cooperation, non-reimbursable financial cooperation and loan assistance. Up to March 2012, Japan’s total ODA to Paraguay reached approximately JPY 250,000 million to support the development of the agricul-ture, infrastructure, health and education sectors.
• In April 1936 the Paraguayan Government granted its consent to 124 families of Japanese immigrants to enter the country.
• This first group settled in an area of approximately 11,000 hectares on a plateau located about 130 km southeast of Asuncion, establishing the colony of “La Colmena” to engage in agricultural activities.
• In 1959, the Governments of Japan and Paraguay signed an Immigration Agreement which approved the immigration of 85,000 Japanese in a 30-year span.
日本とパラグアイ間の友好関係は、1959年以来日本政府がパラグアイ政府に提供してきたODAによる援助によって強化されて来た。この支援は日本の国際協力機関(JICA)を中心として実行されてたものであり、その柱となるのは技術協力、無償資金援助、開発用資金の貸付である。
日本による対パラグアイのODA総額は2012年3月時点で農業開発、インフラ、医療、教育部門を中心に2,500億円に達している。
3
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
• In 1960, the Japan International Cooperation Agency (JICA), acquired land in what is today the district of Pirapo in Itapua, where 26 Japanese families settled, and 87,000 hectares in Alto Parana to establish the Colonia Yguazu, currently the largest colony of Japanese immigrants in the country.
• The Japanese introduced soy to Paraguay. The first large scale productions started in the Japanese colonies in Itapua.
• 1936年4月、パラグアイ政府は124家族の日本人移民受け入れに合意した。
• この日本人移民第1陣は首都アスンシオンの南東約130kmに位置する約11000ヘクタールの面積の台地、「ラ・コルメナ」入植地に定住して農業に従事することになった。
• 1959年、日本とパラグアイ政府間で移民協定が署名された。これを契機として以降30年間に渡り、85000人の日本人移民の入国が認められた。
• 1960年、国際協力事業団(JICA)はイタプアのピラポ地域の土地買収を行い、日本人26家族が入植した。更に、アルト・パラナのコロニア・イグアスの土地87.000ヘクタールを購入し、この地は現在、最大の日本人移民入植地となっている。
• パラグアイに大豆を持ち込んだのはこの日本人移民 あった。最初に大規模生産が開始されたのは主としてイタプアの日本人入植地であった。
Handshake designed by Pavel Pavlov from the thenounproject.com
Paraguay and Japan: A long-standing friendly relationship
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
パラグアイと日本:長年の友好関係Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
南米の主要市場へのアクセス競争力ある資源マクロ経済の安定性と金融の自由各種インセンティブと有利な税制度外国投資の保護と良好なビジネス環境
Paraguay, a land of opportunities o�ers you:ACCESS TO THE BIGGEST MARKETS IN SOUTH AMERICACOMPETITIVE RESOURCESMACROECONOMIC STABILITY AND FINANCIAL FREEDOMBENEFICIAL TAX SCHEME AND INCENTIVESFOREIGN INVESTMENT PROTECTION AND GOOD BUSINESS ENVIRONMENT
4
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
パラグアイ、チャンスに満ちた国は以下を提供する:
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
Argentina
Bolivia
Peru
Ecuador
Colombia
Venezuela Guyana
Surinam
French Guiana
Uruguay
Brazil
パラグアイは、メルスコル(南米共同市場)の加盟国であり、3億人を超える人口を擁する市場への自由なアクセスが可能である。又、戦略的位置を占めることから、ブエノスアイレス、サンパウロ、モンテビデオ、サンチャゴ等の各国首都からそれぞれ飛行機で2時間という至近距離にある。更に、現在建設中の両太洋回廊の中心に位置することから、地域内の主要な港や市場、及び、太平洋、大西洋両岸に所在するフリーポートへのアクセスも容易である。
5
Paraguay River
Parana River
Tiete River
Parana River
Uruguay River
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
1,300km
Paraguay
Tiete-Parana
2,400km
AN IMPORTANT WATERWAY IN THE REGION
Paraguay - Parana - Uruguay
2,770km
Main Commercial
Centers重要市場
河川船海上船
パラグアイの自由港
地域の重要な港
Paraguayanfree ports
Barges Transatlantic Ships
Importantregional ports
Santiago
Buenos Aires Montevideo
Sao Paulo
ASU
Santacruz
Antofagasta
RosarioNueva Palmira
Paranagua
Mejillones
SantosCDE
Conchas
Corumba
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
南米の大河が国を流れる
(全長)
(全長)
Source: 2012 Latin American Statistic Yearbook - ECLAC www.eclac.org *Projection Yr. 2013 **In current US$ (2011)
ACCESS TO ATTRACTIVE MARKETS
Paraguay is located in the center of the regionwith the highest income of South America
Population (Million)
Nominal GDP* (US$ Billion)
Average GDP per Capita** (US$)
South America(100%)
South America(100%)
South America(100%)
MERCOSUR(70%)
MERCOSUR(70%)
MERCOSUR(70%)
405
4,539
7,946
281
3,311
10,402
パラグアイは他の高所得地域に隣接し、南米大陸の中央に位置する
人口(百万人)
名目GDP(US$ 十億)
一人あたりのGDP平均(US$)
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
A) A
CC
ESS
TO TH
E BIG
GES
T MA
RK
ETS IN
SO
UTH
AM
ERIC
A
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
南米の重要市場へのアクセス
A) ACCESS TO THE BIGGEST MARKETS IN SOUTH AMERICA
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
LOGISTIC NETWORK 物流ネットワーク
陸路
既存鉄道
計画中の鉄道
道路
ASU
Belo Horizonte
BrasiliaCuiaba
Santacruz
La Paz
Antofagasta
Santiago
Buenos Aires
MontevideoN. Palmira
Rosario
Cordoba
Salta
Jujuy
Resistencia
Santa Fe
CampoGrande
Punta Pora
PJCRio de Janeiro
Santos
Paranagua
Curitiba
Curitiba (PR)Sao Paulo (SP)Rio de Janeiro (RJ)Buenos Aires (AR)Montevideo (UY)Santiago (CL)Santa Cruz(BO)
Roads from Asuncion (PY)
965 km
1,370 km
1,485 km
1,269 km
1,400 km
2,250 km
1,300 km
Porto Alegre
Current Railways
Projected Railways
Road Network
Rio Grande
Sao Paulo
CDE
ENCENC
Source: IIRSA - www.iirsa.org
6
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
A) A
CC
ESS
TO
TH
E B
IGG
EST
MA
RK
ETS
IN S
OU
TH A
MER
ICA
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
パラグアイ輸出産物の殆どは、パラグアイ-パラナ川を経由して、ブエノスアイレス、モンテビデオ、ロサリオの各港に河川を航行して運搬される。又、アスンシオンからの国内ルートは、エンカルナシオンやシウダー・デル・エステといった国境沿いの都市と結ばれており、ブラジル・アルゼンチンへの輸送も容易である。
パラグアイはメルスコル(加盟国はアルゼンチン、ブラジル、ウルグアイ、及び、ベネズエラ)の創設以来の完全加盟国であり、加盟国に対して関税フリーで輸出が可能であり、又、太平洋同盟の公式オブザーバー国であり、将来の加盟国候補でもある。
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
更に2014年以降、パラグアイはメルスコル加盟国の中でEUによるGSPプラス(一般特恵関税システム)の唯一の適用国である。パラグアイは同時に、1995年の設立時からWTOに加盟しており、現在に至るまで提訴等の紛争当事国になった事は一切無い。
• 若く、訓練可能な労働力:パラグアイは南米で最も若い人口を有しており、総人口の73.7%が34歳以下で構成されている。労働力コストはメルスコル域内でも最も競争力が高い。
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
7
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
“Paraguayan labor o�ers high and satisfactory performance worldwide within our company”
(Ignacio Ibarra – CEO FUJIKURA)
YOUNG AND TRAINABLE LABOR FORCEPopulation younger than 34 years old (%) 34歳以下の人口 (%)
Paraguay Bolivia LAC Average Brazil Chile Argentina Uruguay
Sources: Dirección Nacional de Estadísticas, Encuestas y Censos (www.dgeec.gov.py) Worldmapper (www.worldmapper.net) / http://www.abc.com.py/edicion-impresa/economia/paraguay-opcion-de-futuro-para-empresas-brasilenas-558514.html
73.7 73.467.4 65.7
60.1 59.954.8
Paraguay has the youngest population in Latin America.
我が社の世界基準で、パラグアイの労働者は満足すべき良好な効率をあげています。
イグナシオ・イバラ フジクラ社CEO
最低賃金: 430米ドル社会保障: 16.5% (70米ドル)計: 500米ドル
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
Minimum Wage: US$430 Social Benefits: 16.5% (US$70) Total = US$500
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
B) C
OM
PETITIVE R
ESO
UR
CES
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
B) COMPETITIVE RESOURCES
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
競争力ある資源
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
50 MWh
month
• クリーンで安価なエネルギー:パラグアイはメルコスル域内で最大の発電量を擁し、又、電力コストにおいて最も競争力ある国々の一角をなす。従って、電力集約産業は、技術開発にとって必要な最良のインフラを手にする事ができる。パラグアイはイタイプ、ヤシレタ、アカライという3つの水力発電用ダムを持つ最大の電力輸出国であり、今後、その数を更に増大させる潜在能力を有する。イタイプはパラグアイとブラジル国境に位置する2国間企業である。同水力発電所は14,000メガワットの設備能力を有し、毎時90ギガワットに及ぶ最大発電量を誇る。パラグアイは非常に安価な電力を生産しているが、発電量の約13%を国内で消費するにすぎない。イタイプの発電量に加え、アルゼンチンと共同で建設したヤシレタ発電所によって、パラグアイは100%再生可能であり、「温室効果」を産み出す二酸化炭素ガスを排出しない電力の世界最大の輸出国となっている。
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
8
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
CLEAN ELECTRIC ENERGY AT LOW COSTCost of Electricity for Industries 50 MWh/month in US$
Paraguay
Peru
Chile
Brazil
Mexico
Colombia
Uruguay
Guatemala
El Salvador
Dominican Rep.
Costa Rica
US$ 59
US$ 82
US$ 107
US$ 121
US$ 135
US$ 139
US$ 151
US$ 195
US$ 218
US$ 233
US$ 246
エネルギー価格・工業部門 50 MWh/月当たりUS$
パラグアイ
ペルー
チリ
ブラジル
メキシコ
コロンビア
ウルグアイ
グァテマラ
エルサルバドル
ドミニカ共和国
コスタリカ
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
Source: CIER Energy Report on CIER Countries 2013
B) C
OM
PET
ITIV
E R
ESO
UR
CES
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
• 土地:不動産価格も非常に安価である。過去10年間、コンサルタント会社であるマーサーヒューマン・リソース・コンサルティング社の発表によれば、アスンシオン市は5回連続で、世界で最も物価の安い首都であるとされている。
• 域内で最も低い税率:パラグアイは域内で最も税率の低い税制度を有し、国内で生産に従事する企業は最も安い生産コストを享受することが可能となる。
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
9
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
COMPETITIVE TAX SYSTEM
TAXES
CORPORATE INCOME TAX
PERSONAL INCOME TAX
VALUE ADDED TAX (VAT)
PARAGUAY
10%
10%
10%
35%
35%
21%
25%
25%
23%
34%
27.5%
25%
ARGENTINA URUGUAY BRAZIL
Plug-In designed by Edward Boatman, Lightning designed by Ryan Oksenhorn, Tree designed by Humberto Pornaro, Tax designed by Juan Pablo Bravo from the thenounproject.com
税の種類 パラグアイ アルゼンチン ウルグアイ ブラジル
法人税
個人所得税
付加価値税
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
Source: Ministry of Finance (www.hacienda.gov.py)
B) C
OM
PETITIVE R
ESO
UR
CES
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
パラグアイ経済成長率 1992-2014*
経済成長率(%)
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
STRONG ECONOMIC GROWTH FOR A DECADE…
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
10
C) M
AC
RO
ECO
NO
MIC
STA
BIL
ITY
AN
D F
INA
NC
IAL
FREE
DO
M
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
Paraguay economic growth 1992-2014*
Econ
omic
Gro
wth
(%)
1.7
4.95.3
6.8
1.6
4.2 Average平均成長率1992-2002
1.8
Average 平均成長率2003-2014* 4.8
0.1 0.0
2.1
4.85.4
6.4
13.113.6
4.8
-1.4-2.3
-0.8
-4.0
-1.2
0
2
-2
4
-4
-6
6
8
10
12
14
Source: IMF-WEO Update Apr-2014 and CBP.
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
4.1
GDP
4.34.3
パラグアイは予測可能な経済と、管理可能なインフレ水準に特徴づけられる良好な投資環境を提供する。
過去10年間、パラグアイは平均年率4.76%の堅固な経済成長率を記録した。この数字は域内で最も成長率の高い国の一つであることを示している。2013年のパラグアイのGDP成長率は13.6%と世界最高水準であった。
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
C) MACROECONOMIC STABILITY AND FINANCIAL FREEDOM
マクロ経済の安定性と金融の自由
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
2003年から2013年の平均経済成長率
米ドル為替交換率 (2008年1月の指数を100とする)
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
C) M
AC
RO
ECO
NO
MIC
STA
BILITY A
ND
FINA
NC
IAL FR
EEDO
M
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
Average economic growth 2003-2013
6.9 6.45.2 4.8 4.7 4.7 4.6 4.6 4.6
3.5 (%)
0
2
-2
4
6
8
10
Source: IMF-WEO Update Apr-2014 and CBP. 出所:IMF-WEO(世界経済見通し) 2014年4月の最新版及びパラグアイ中央銀行
ARG PER URU PAR COL BOL CHI VEN ECU BRA
パラグアイは最近70周年を迎えた通貨(グアラニ)の歴史において高いインフレ率を経験したことも無く、また、発行開始以来デノミも行っていない.
Source: Bloomberg 出所:ブルームバーグ
80
130
180
230
260
M02
-08
M05
-08
M08
-08
M11
-08
M02
-09
M05
-09
M08
-09
M11
-09
M02
-10
M05
-10
M08
-10
M11
-10
M02
-11
M05
-11
M08
-11
M11
-11
M02
-12
M05
-12
M08
-12
M11
-12
M02
-13
M05
-13
M08
-13
M11
-13
M02
-14
M05
-14
USD exchange rate (Index January 2008 = 100)
Real
Peso
Guarani
Guarani (Paraguay)
Peso (Argentina)
Real (Brazil)
11
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
グアラニ(パラグアイ)
ペソ(アルゼンチン)
レアル(ブラジル)
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
パラグアイは健全な資本、信用リスクのコンスタントな改善、自由な資金の移転などの利点を持つ金融システムを提供する。2000年から2012年の間の平均利益と送金額は3億7600万米ドルであった。
パラグアイのROI(投資回収率)は22%とラテンアメリカ諸国では第2位を占めている。第1位はペルーの25%である。出所:CEPAL-ラテン・アメリカカリブ経済委員会ー(2014年度地域見通し)
12
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
C) M
AC
RO
ECO
NO
MIC
STA
BIL
ITY
AN
D F
INA
NC
IAL
FREE
DO
M
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast)
Rating
Ba2 Feb 2014
Jan 2013
Dec 2010
Jun 2010
Apr 2008
Nov 2007
Apr 2003
Oct 1995
+
+
+
Ba3
B1
B3
B3
Caa1
Caa1
BB-(initial)
Credit Watch Date Rating Credit
Watch Date Rating Credit Watch Date
BB Jun 2014
Dec 2013
Aug 2012
Jun 2012
Aug 2011
Aug 2010
Jun 2007
-
+
BB-
BB-
BB-
BB-
B+
BJul 2004B-Feb 2003SDNov 2002B-Jun 1999BFeb 1999B+
Jul 1999B2(initial)
Jan 2014
Ratings up
Ratings down
Initial ratings
BB-Feb 2013BB-
(initial)
Source: Bloomberg
The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
パラグアイの税制は簡便であり、投資法は内外投資家への同一の取り扱いを保証している。パラグアイは又、幾つかの国々との間に投資保証協定を締結している。投資法(法令60/1990)マキラ法、フリーゾーン法など多くの優遇措置がある。
13
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
D) B
ENEFIC
IAL TA
X SC
HEM
E AN
D IN
CEN
TIVES
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
各種インセンティブと有利な税制度
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
D) BENEFICIAL TAX SCHEME AND INCENTIVES
Import tari� on Capital Goods (machinery & equipment)
0%
Value Added Tax (VAT) on acquired Capital Goods (in or out of the country)
Taxes on remittances abroad & payments of loans obtained abroad (capital, interest & commissions)
applied to investments over US$5 million
0%
0%
Taxes on payment of dividends & transfer of profits abroad (applied for investments over US$5 million for 10 years)
0%
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
I. 1990年発布の法律第60号
1990年発布の法律第60号に準じて、内外投資家は以下に記載される税金の支払いが免除される:
• 投資プロジェクトにおける資本財、原材料、及び投入財の 輸入時の関税及び国内税
• 工業及び農牧畜業の生産施設において使用される資本財 購入の際の付加価値税
• 会社や団体の設立、登記、登録に関わるあらゆる税金
• 元金、利息及び手数料の外国送金や支払い(500万米ドルを 超える投資に適用)に関する税金
• 500万ドル以上の金額で外国からの融資の場合の 元金・利息・及び手数料の外国送金に得する税金
上記の税法上の特典を得ることを希望する投資プロジェクトは商工省及び大蔵省の承認を得る必要がある。
適用の可能性1990年発布の法律第60号により定められる税金支払いの免除は以下の投資に適用される:資金調達、資本財、特定の技術支援、鉱業、ホテル業、資本財のリース、乗客及び貨物の空輸、河川輸送、陸路の一般貨物輸送、乗客の公共輸送、保健医療、ラジオ、テレビ、マスコミ、地方及び市街地の固定電話、移動電話、科学研究、倉庫保管、データ通信サービス等。
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
14
D) B
ENEF
ICIA
L TA
X S
CH
EME
AN
D IN
CEN
TIVE
S
資本財輸入税 (機械・器具)
資本財に対しての付加価値税(国内、国外適応)
海外宛の融資に対する税金・金利・手数料の送金の税(500万ドル以上の投資に限る)
配当金の支払い、利益の海外送金に対しての税金(10年、500万ドル以上の投資に限る)
0%
0%
0%
0%
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
MAQUILA CONTRACT
COMPANY ABROAD
EXPORTS
MAQUILA OPERATION
PRODUCTS・ GOODS・ SERVICES
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
II. マキラ(保税)制度
マキラ制度とは、パラグアイに所在する企業が輸出用の財やサービスを生産するシステムである。生産は国際契約を通じて海外の親会社が行い、世界中のすべての国に出荷することができる。本制度の下で財を生産した場合に享受する主な特典は以下の通りである:
• 製造加工やその後の輸出を目的として一時的に輸入する原材料、投入財、部品や構成要素について関税その他の税金支払いの免除
• 同様に、マキラ事業に関連して一時的に輸入される機械設備について、契約に定められる期間、関税その他の税金支払いの免除
• マキラ生産を補完する財やサービスの国内における供給の可能性
• 部分的及び補完的な製造過程における国内企業への下請け契約(準マキラドーラ)に対する税金について、特別取り扱いの可能性
• マキラ契約履行に関連する輸出入、借入金、その他の事業に関わる税金の免除
• マキラ契約により生産された商品の輸出にあたっては、付加価値の1%の単一納税
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
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II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
HEAD COMPANY
TO PRODUCE:・ Tangible goods・ Intangible goods・ ServicesFOR EXPORT
生産のため:・ 有形財 ・ 無形財・ サービス
マキーラ請求書:労働 +財・サービス +減価償却 +マキーラサービス
Temporary import of capital goods,primary materials, elements, parts, components.
仮輸入の資本財・原材料・投入財・部品・コンポーネントの一時的な許可
国内市場最大前年度生産の10%までは適用される関税並びに税金の支払い後(一時的に停止されていた関税/税金の再適用)
その他のメルコスール加盟国に向けて輸出準備が出来た製品及びサービスは、非課税でメルコスール加盟国に持ち込みが可能
MAQUILA INVOICEWORKFORCE COSTS +
GOODS AND SERVICES +DEPRECIATION +
MAQUILA SERVICE
NATIONAL MARKETUp to 10% of previous year’s production can be sold paying applicable taxes or duties(reinstatement of temporarily suspended taxes/duties).
TAX SUSPENSION
SINGLE MAQUILA TAX
with warranty policy presented
1% over the national value added
MAQUILA COMPANY
マキラ事業を実施するには、企業は「マキラ計画」を作成して、輸出マキラドーラ産業国家委員会(CNIME)の承認を得るために提出しなければならない。計画が承認されたマキラドーラ企業は、税関当局が承認するに充分であると認める許容可能な税額に相当する保証を提供するように義務付けられる。同保証は一時的に輸入された産品が海外に輸出される際に清算され、返還される。提供される保証の種類(総合、又は変動)によらず、あらゆる種類の税金が免除され、金利も課される事は無い。この保証については、財、産物、又はサービスに一時的なマキラ輸出制度が適用された場合、同様に完全な権利が認められるメルコスル域内にあって。
CONTRACT
Factory designed by Owen Payette McGarry, Building designed by Nate Eul, Box designed by Josh Deane from the thenounproject.com
INTERNATIONAL MARKET
TO OTHER MERCOSUR MEMBER COUNTRIESProducts and services ready for export can enter other Mercosur member countries
free of tax
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
本社 マキラ会社
国際市場
契約
課税停止担保提出によって関税並びに税金が停止
マキーラ税パラグアイでの付加価値に対して1%のみ
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
MERCOSUR “Rules of Origin”
Necessary regional (MERCOSUR) content
Brazil Argentina Uruguay Paraguay
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
Source: Law 523/95 - National Free Zone Council 出所:法律第523号/95
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
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Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
投資は長期に渡り安定的で持続的な経済成長を可能にするための法的保護を制定する、安定的で確実、かつ、透明な法的枠組みを必要とする。パラグアイは自由貿易に基づく経済制度を有しており、内外のあらゆる投資に完全な門戸を開いている。従って、政府による承認プロセスを必要としない。更に、法規や標準が変更される事が無いよう、完璧な法的安定性が規定されており、投資の進行中、投資家に対して有利な状況を提供する。国家憲法は経済と貿易の自由を保証しており、投資が規制される分野は存在せず、差別的、限定的取り扱いも一切無い。従って、自国民・外国人を問わず、あらゆる個人は国家のモラルや公共の秩序、国の安全に反する事が無い限り、該当の法規を遵守の上、あらゆる経済活動を実施する権利を有する。又、投資法(1991年発布の法律第117号)は以下の原則を定めている:
パラグアイは最も競争力ある「原産地ルール」を持ち、60%までの部品は海外調達可能であり、40%のみがメルコスルを原産地としなければならない。このルールに則り、パラグアイ内で生産される物品が免税で域内全体に輸出されることが可能である。
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
メルコスール原産の規則
必要な地域のコンテンツ
労働力を多く使用する産業は2023年まで特別優遇制度がある。産地証明は他のメルコスール国と比較し、パラグアイの方が取得しやすい。
60% 60%
50%40%
60%40%
Extra zone imported components allowed in product
Required regional components:・Raw materials・Parts & components・Labor ・Services・Energy, water・Import Freights*
* If the service is provided by a company established in Paraguay
Paraguay has a “special treatment” regarding “rules of origin” of manufactured products until 2023. It is easier for a product to acquire “MERCOSUR origin” in Paraguay than in any other member country.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
• 平等:外国投資は国内投資と同等の取り扱いを受ける。従って、外国投資家は差別的な条件を課されることも取り扱いを受けることも無く、又、逆に優先的な扱いを受けることも無い。
• 所有権: 内外投資家は憲法と法律が定める制限の対象物以外のあらゆる土地財産を購入することができる。
• 為替交換の自由:資本の国内外への移動が保証され、すべての為替交換や送金、資金移動に関して法律に規定される税金の支払い以外、配当金、利息、手数料、技術移転その他の事由によるロイヤリティー等の海外送金に対してなんらの規制も無い。
• 内外における投資保険の自由な契約が保証されている。
• 自由交易:以下に記載する内容を含めた自由な交易が保証されている: ▪ 一般的な財やサービスの生産と取引の自由 ▪ 法律の規制対象以外のあらゆる財やサービスの生産と売買
における自由な価格設定
▪ 法律で禁止される物以外の財とサービスの自由な貿易
これらの保証は、内外投資家が我が国の税制、労働法、社会保障制度を遵守する限り与えられる。
• 普遍性:外国投資は国内特別法によって規制される例外を除き、あらゆる部門の経済活動において歓迎される。例外とされる分野としては、監督官庁による許認可又は特定のコンセッション(営業や開発権利の移転)を必要とする炭化水素、鉱物、電気通信、林業などが挙げられる。これらの場合、投資家は、個々に定められる制度に従わねばならない。
• 自動性:上記は例外として, 外国投資家はその他のあらゆる部門への投資が認められており、特別な制度に従わねばならない種類の投資を除き、事前の許認可を求める必要は無い。特別な場合は、個々に定められている制度に準じた手続きが必要となる。
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
2014年5月、パラグアイは前年度における経済環境指数の平均値がラテンアメリカの中で最高の位置を占めた。この経済環境指数とは著名なヘテウリオ・ヴァルガス財団とミュンヘン大学のレイブニス経済研究所が判定する数値であり、ラテンアメリカ諸国の現状と今後の6か月を見通した上での経済シナリオを基に測定している。
パラグアイは安定的な法的枠組みを通じて投資に対し類の無いほどのメリットと高いインセンティブを提供する。
内外投資家に対する税制面を優遇する法律第60号/1990に加え、法律第117号/1991は内外投資家への同一取り扱いを定めており、更に2013年、パラグアイ政府は官民協力法として知られる法律第5102号“公共インフラに対する投資、及び、国有の財とサービスの拡大と改善の促進に関する法律”を承認した。
その結果、2015年以降、年間総額15億米ドルを超える予定額の大規模公共工事に対して17件以上の施行者選定の為の国際公開入札が召集されることになっている。計画中のすべての公共工事は、20年以上の長期的計画であり、以下の目的を持つ:
・運輸・流通(ロジスティック)用のインフラとサービスの 組織的発展
・効率的で複合的な方法による統合の促進
・我が国の流通(ロジスティック)回廊の多様化
・官民の連帯と権利移譲(コンセッション)を通じて将来の インフラ投資計画を促進
・国際回廊の整備
・両大洋回廊の導入
※過去12年間における公共工事への平均年次投資額は1億8,000万米ドル程度にとどまっていたにも関わらず、今後5年間はインフラ工事に75億米ドルが投資される予定である。この事実がパラグアイの発展における新しい転機となる事に疑いの余地は無い。
Paraguay o�ers unique advantages and strong incentives for foreign investments through an established legal framework.
Besides Law 60/1990 which o�ers fiscal incentives to national and international investment, and Law 117/1991 which establishes equal treatment to domestic and foreign investments, in 2013 the Government of Paraguay also approved Law 5102 on Investment Promotion in Public Infrastructure, Expansion and Improvement of Goods and Services provided by the Government, also known as Public-Private Partnership Law.
In 2015, more than 17 contracts of major public works with an annual estimated value of over US$1.5 billion are planned to go under public international tender. All of the projected works have an approximate 20-year time horizon and are aimed at:
・Organizing the development of infrastructure, transportation and logistics services of Paraguay
・Promote an e�ective multimodal integration
・Diversify the country’s logistics corridor
・Develop programs for future infrastructure investments through public-private partnerships
・Establish international corridors
・Implement a bioceanic corridor
Over the next five years, the Government of Paraguay is planning to invest around US$75 billion in infrastructure works, which is remarkable considering that the average public work invest-ment during the last 12 years was below US$180 million per year.
Examples of Infrastructure Projects Prioritized by the Paraguayan Government:
The “Golden Triangle” Asuncion-Ciudad del Este-EncarnacionThis program includes more than 800 kilometers of improvements of the current road infrastructure through Public-Private Partnerships or concessions.
Estimated investment: US$1 billion
Parana-Paraguay Waterway With an approximate extension of 1,000 kilometers, the works to be undertaken include maintenance dredging, signage improvement, and strengthening the support system for navigation.
Estimated investment: US$400 million
International Airports Upgrading ProgramsThis program aims to modernize the air transportation system by granting the operation of major airports to the private sector and provide a world class service within a regional hub concept for the transport of passengers and cargo.
Comparative advantage of the airport network in Paraguay:• Annual operating level of 98% due to optimal weather conditions • Flat topography, no more than 100 meters above sea level• Equidistance to the biggest cities in South America
Estimated investment: US$130 million in five years
Commuter Railroads of AsuncionThe objective of this project is to build 44 kilometers of double track lines, with electrical system with third rail, and five terminals. The expected demand is over 50,000 passengers per day.
Estimated investment: US$250 million
Water and Sanitation Projects The objective is to reach 100% coverage of water supply and sanitation services throughout the country.
Estimated investment: US$2.7 billion
パラグアイ政府が優先するインフラプロジェクトの例
アスンシオン-シウダー・デル・エステ-エンカルナシオンの3都市を結ぶ“黄金のトライアングル”におけるインフラ改善本計画は、公民協力とコンセッション方式による現在の道路インフラ、総延長800㎞の整備改善も含む。
予想投資額 10億米ドル
パラナ―パラグアイ河川ルート総延長距離約1,000㎞、工事は開口とメンテナンス用浚渫、信号システムの整備、航行支援システムの改善である。
予想投資額:4億米ドル
国際空港の近代化本計画の目的は民間への主要空港業務の権利譲渡(コンセッション)を通じて、空輸システムを近代化し、乗客、及び、貨物輸送の為の地域内ハブ空港としてのコンセプトに順じた世界レベルのサービスを提供することにある。パラグアイの空港網が有する比較優位性:・最上の気候条件に恵まれることから年間98%の運航率を誇る・海抜100m以下の平坦な地形・南米主要都市からの均一距離
予想投資額:当初5年間で1億3,000万米ドル
アスンシオン市近郊電車本プロジェクトの目的は複軌全長44キロ(第3軌道は電気施設用、5か所のターミナル駅舎含む)の近郊電車の運行である。予測される需要は1日当たり5万人の乗降客である。
予想投資額:2億5,000万米ドル
上下水道マスタープラン目的は上水道供給と下水サービスの国内100%の普及率達成にある。
予想投資額:官民協力による27億米ドル
Free Zone Import
Service Suppliers in Paraguay
0% taxes
0.5%Taxes on invoice value
Service Suppliersinside FZ
Clientsinside FZ 0% taxes
0% taxes
International Services Suppliers
輸入
請求額について0.5%の税金
フリーゾーン
免税 フリーゾーン内のサービス提供者
フリーゾーン内の顧客
免税
免税
パラグアイ国内のサービス提供者
国際的サービス提供者
輸出Export
Machineries, capital, raw materialenter with 0% of taxes.
・Exchange of goods and services between users inside the FZ
・Raw materials and goods not liable to tax while stored insede FZ
機会、資本材、原材料は免税で輸入
・フリーゾーン内のユーザー間の財とサービス交換・フリーゾーン内で保管中の原材料と財に対する免税
0.5% taxes on invoice value
請求額に対して0.5%
Clients in Paraguay
International Clients
パラグアイの顧客
国際的顧客
最終製品Finished Products
輸入原材料ストック
Stock of imported raw materials and inputs
(FZ = Free Zone)
0% VAT付加価値税免税
0.5%の税金
輸入税免税
輸入税
Taxes of 0.5%0%Im
port tari�
Import t
ari�
Private Opportunities in Paraguay
Paraguay’s private sector also o�ers attractive investment opportunities in the following: • Food industry• Textile industry and clothing• Metalwork industry• Wire harnesses and autoparts• Shoes and leather industry• Reforestation• Logistics• Livestock production, slaughter for export• Agricultural transformation (irrigation, quality certification)• Railroad transportation for passengers• Real estate• Agribusiness• Business services• Financial sector
CONCLUSION• Paraguay o�ers the most opportunities and the best investment climate for Japanese companies in South America.
• The Japanese technology, discipline, innovation and leadership, combined with Paraguay’s young and disciplined labor force, energy, natural resources, low tax, expanding markets, and safe macroeconomic environment, o�ers a magnifi-cent opportunity to establish “win-win” alliances.
• All this, in the framework of over 78 years of cooperation and friendship.
パラグアイが民間部門に提供するチャンス
パラグアイの民間部門も又、以下のような魅力ある投資機会を提供している。 • 食料産業• 繊維・アパレル産業• 金属加工業• ワイヤーハーネス及び 自動車部品• 靴・レザー産業• 植林• ロジスティック• 畜産・輸出用家畜 解体業• 農業加工業(灌漑、品質証明) • 鉄道(乗客)運輸業• 不動産• アグリビジネス• ビジネス・サービス.• 金融部門
結論• パラグアイは南米において、日本企業にもっとも多くの チャンスと優れたビジネス環境を提供する国である。
• 日本の技術・規律正しさ・イノベーション・リーダーシップ と、パラグアイによって提供される若く規律正しい労働力 ・エネルギー・自然資源・低率の税金・拡大する市場・健全 なマクロ経済環境の融合は、日本とパラグアイの「ウインー ウイン」同盟関係を築くための素晴らしいチャンスとなる。
• これらすべては、78年にわたる両国の友好・協力関係に よるものである。
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
Globe designed by Proletkult Graphik, Teddy Bear designed by Alex Hartmann, Barcode designed by Brandon Manning from the thenounproject.com
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
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D) B
ENEFIC
IAL TA
X SC
HEM
E AN
D IN
CEN
TIVES
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. 保税地域(フリーゾーン制度)
パラグアイは商業、工業、サービス企業の設置に必要なフリーゾーン制度を有している。フリーゾーンに進出して、第3国への輸出のみを目的として事業活動を行う企業には、第3国への総輸出額を基に「フリーゾーン税」と呼称される0.5%の税金のみが課せられる。第3国への輸出に加えてパラグアイ国内においても商品又はサービスを販売する企業は、総収入額の中で国内向け販売額が占める割合に応じて法人税(10%)を支払う。本制度の下でフリーゾーンに持ち込まれる機械機器、資本財や原材料には輸入税が課せられることは無い。フリーゾーンの使用者間の財やサービスの交換、並びに原材料と財の保管にも税金が免除される。現在アルトパラナ地方には、二ヶ所のフリーゾーン(保税地域)があります。一つはブラジルとの国境、もう一つはアルゼンチンとの国境です。どちらの地域でも、多くの国際企業が活発に操業を続けています。
IV. 輸出インセンティブ
政府は生産の前段階について税の支払い猶予を認めているため、輸出に対する付加価値税支払いが免除される。又、一時的入国を認める制度により、輸入税や付加価値税は免除される。
投資は長期に渡り安定的で持続的な経済成長を可能にするための法的保護を制定する、安定的で確実、かつ、透明な法的枠組みを必要とする。パラグアイは自由貿易に基づく経済制度を有しており、内外のあらゆる投資に完全な門戸を開いている。従って、政府による承認プロセスを必要としない。更に、法規や標準が変更される事が無いよう、完璧な法的安定性が規定されており、投資の進行中、投資家に対して有利な状況を提供する。国家憲法は経済と貿易の自由を保証しており、投資が規制される分野は存在せず、差別的、限定的取り扱いも一切無い。従って、自国民・外国人を問わず、あらゆる個人は国家のモラルや公共の秩序、国の安全に反する事が無い限り、該当の法規を遵守の上、あらゆる経済活動を実施する権利を有する。又、投資法(1991年発布の法律第117号)は以下の原則を定めている:
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
E) FOREIGN INVESTMENT PROTECTION AND GOOD BUSINESS ENVIRONMENT外国投資の保護と良好なビジネス環境
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
• 平等:外国投資は国内投資と同等の取り扱いを受ける。従って、外国投資家は差別的な条件を課されることも取り扱いを受けることも無く、又、逆に優先的な扱いを受けることも無い。
• 所有権: 内外投資家は憲法と法律が定める制限の対象物以外のあらゆる土地財産を購入することができる。
• 為替交換の自由:資本の国内外への移動が保証され、すべての為替交換や送金、資金移動に関して法律に規定される税金の支払い以外、配当金、利息、手数料、技術移転その他の事由によるロイヤリティー等の海外送金に対してなんらの規制も無い。
• 内外における投資保険の自由な契約が保証されている。
• 自由交易:以下に記載する内容を含めた自由な交易が保証されている: ▪ 一般的な財やサービスの生産と取引の自由 ▪ 法律の規制対象以外のあらゆる財やサービスの生産と売買
における自由な価格設定
▪ 法律で禁止される物以外の財とサービスの自由な貿易
これらの保証は、内外投資家が我が国の税制、労働法、社会保障制度を遵守する限り与えられる。
• 普遍性:外国投資は国内特別法によって規制される例外を除き、あらゆる部門の経済活動において歓迎される。例外とされる分野としては、監督官庁による許認可又は特定のコンセッション(営業や開発権利の移転)を必要とする炭化水素、鉱物、電気通信、林業などが挙げられる。これらの場合、投資家は、個々に定められる制度に従わねばならない。
• 自動性:上記は例外として, 外国投資家はその他のあらゆる部門への投資が認められており、特別な制度に従わねばならない種類の投資を除き、事前の許認可を求める必要は無い。特別な場合は、個々に定められている制度に準じた手続きが必要となる。
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
2014年5月、パラグアイは前年度における経済環境指数の平均値がラテンアメリカの中で最高の位置を占めた。この経済環境指数とは著名なヘテウリオ・ヴァルガス財団とミュンヘン大学のレイブニス経済研究所が判定する数値であり、ラテンアメリカ諸国の現状と今後の6か月を見通した上での経済シナリオを基に測定している。
パラグアイは安定的な法的枠組みを通じて投資に対し類の無いほどのメリットと高いインセンティブを提供する。
内外投資家に対する税制面を優遇する法律第60号/1990に加え、法律第117号/1991は内外投資家への同一取り扱いを定めており、更に2013年、パラグアイ政府は官民協力法として知られる法律第5102号“公共インフラに対する投資、及び、国有の財とサービスの拡大と改善の促進に関する法律”を承認した。
その結果、2015年以降、年間総額15億米ドルを超える予定額の大規模公共工事に対して17件以上の施行者選定の為の国際公開入札が召集されることになっている。計画中のすべての公共工事は、20年以上の長期的計画であり、以下の目的を持つ:
・運輸・流通(ロジスティック)用のインフラとサービスの 組織的発展
・効率的で複合的な方法による統合の促進
・我が国の流通(ロジスティック)回廊の多様化
・官民の連帯と権利移譲(コンセッション)を通じて将来の インフラ投資計画を促進
・国際回廊の整備
・両大洋回廊の導入
※過去12年間における公共工事への平均年次投資額は1億8,000万米ドル程度にとどまっていたにも関わらず、今後5年間はインフラ工事に75億米ドルが投資される予定である。この事実がパラグアイの発展における新しい転機となる事に疑いの余地は無い。
Paraguay o�ers unique advantages and strong incentives for foreign investments through an established legal framework.
Besides Law 60/1990 which o�ers fiscal incentives to national and international investment, and Law 117/1991 which establishes equal treatment to domestic and foreign investments, in 2013 the Government of Paraguay also approved Law 5102 on Investment Promotion in Public Infrastructure, Expansion and Improvement of Goods and Services provided by the Government, also known as Public-Private Partnership Law.
In 2015, more than 17 contracts of major public works with an annual estimated value of over US$1.5 billion are planned to go under public international tender. All of the projected works have an approximate 20-year time horizon and are aimed at:
・Organizing the development of infrastructure, transportation and logistics services of Paraguay
・Promote an e�ective multimodal integration
・Diversify the country’s logistics corridor
・Develop programs for future infrastructure investments through public-private partnerships
・Establish international corridors
・Implement a bioceanic corridor
Over the next five years, the Government of Paraguay is planning to invest around US$75 billion in infrastructure works, which is remarkable considering that the average public work invest-ment during the last 12 years was below US$180 million per year.
Examples of Infrastructure Projects Prioritized by the Paraguayan Government:
The “Golden Triangle” Asuncion-Ciudad del Este-EncarnacionThis program includes more than 800 kilometers of improvements of the current road infrastructure through Public-Private Partnerships or concessions.
Estimated investment: US$1 billion
Parana-Paraguay Waterway With an approximate extension of 1,000 kilometers, the works to be undertaken include maintenance dredging, signage improvement, and strengthening the support system for navigation.
Estimated investment: US$400 million
International Airports Upgrading ProgramsThis program aims to modernize the air transportation system by granting the operation of major airports to the private sector and provide a world class service within a regional hub concept for the transport of passengers and cargo.
Comparative advantage of the airport network in Paraguay:• Annual operating level of 98% due to optimal weather conditions • Flat topography, no more than 100 meters above sea level• Equidistance to the biggest cities in South America
Estimated investment: US$130 million in five years
Commuter Railroads of AsuncionThe objective of this project is to build 44 kilometers of double track lines, with electrical system with third rail, and five terminals. The expected demand is over 50,000 passengers per day.
Estimated investment: US$250 million
Water and Sanitation Projects The objective is to reach 100% coverage of water supply and sanitation services throughout the country.
Estimated investment: US$2.7 billion
パラグアイ政府が優先するインフラプロジェクトの例
アスンシオン-シウダー・デル・エステ-エンカルナシオンの3都市を結ぶ“黄金のトライアングル”におけるインフラ改善本計画は、公民協力とコンセッション方式による現在の道路インフラ、総延長800㎞の整備改善も含む。
予想投資額 10億米ドル
パラナ―パラグアイ河川ルート総延長距離約1,000㎞、工事は開口とメンテナンス用浚渫、信号システムの整備、航行支援システムの改善である。
予想投資額:4億米ドル
国際空港の近代化本計画の目的は民間への主要空港業務の権利譲渡(コンセッション)を通じて、空輸システムを近代化し、乗客、及び、貨物輸送の為の地域内ハブ空港としてのコンセプトに順じた世界レベルのサービスを提供することにある。パラグアイの空港網が有する比較優位性:・最上の気候条件に恵まれることから年間98%の運航率を誇る・海抜100m以下の平坦な地形・南米主要都市からの均一距離
予想投資額:当初5年間で1億3,000万米ドル
アスンシオン市近郊電車本プロジェクトの目的は複軌全長44キロ(第3軌道は電気施設用、5か所のターミナル駅舎含む)の近郊電車の運行である。予測される需要は1日当たり5万人の乗降客である。
予想投資額:2億5,000万米ドル
上下水道マスタープラン目的は上水道供給と下水サービスの国内100%の普及率達成にある。
予想投資額:官民協力による27億米ドル
Private Opportunities in Paraguay
Paraguay’s private sector also o�ers attractive investment opportunities in the following: • Food industry• Textile industry and clothing• Metalwork industry• Wire harnesses and autoparts• Shoes and leather industry• Reforestation• Logistics• Livestock production, slaughter for export• Agricultural transformation (irrigation, quality certification)• Railroad transportation for passengers• Real estate• Agribusiness• Business services• Financial sector
CONCLUSION• Paraguay o�ers the most opportunities and the best investment climate for Japanese companies in South America.
• The Japanese technology, discipline, innovation and leadership, combined with Paraguay’s young and disciplined labor force, energy, natural resources, low tax, expanding markets, and safe macroeconomic environment, o�ers a magnifi-cent opportunity to establish “win-win” alliances.
• All this, in the framework of over 78 years of cooperation and friendship.
パラグアイが民間部門に提供するチャンス
パラグアイの民間部門も又、以下のような魅力ある投資機会を提供している。 • 食料産業• 繊維・アパレル産業• 金属加工業• ワイヤーハーネス及び 自動車部品• 靴・レザー産業• 植林• ロジスティック• 畜産・輸出用家畜 解体業• 農業加工業(灌漑、品質証明) • 鉄道(乗客)運輸業• 不動産• アグリビジネス• ビジネス・サービス.• 金融部門
結論• パラグアイは南米において、日本企業にもっとも多くの チャンスと優れたビジネス環境を提供する国である。
• 日本の技術・規律正しさ・イノベーション・リーダーシップ と、パラグアイによって提供される若く規律正しい労働力 ・エネルギー・自然資源・低率の税金・拡大する市場・健全 なマクロ経済環境の融合は、日本とパラグアイの「ウインー ウイン」同盟関係を築くための素晴らしいチャンスとなる。
• これらすべては、78年にわたる両国の友好・協力関係に よるものである。
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
投資は長期に渡り安定的で持続的な経済成長を可能にするための法的保護を制定する、安定的で確実、かつ、透明な法的枠組みを必要とする。パラグアイは自由貿易に基づく経済制度を有しており、内外のあらゆる投資に完全な門戸を開いている。従って、政府による承認プロセスを必要としない。更に、法規や標準が変更される事が無いよう、完璧な法的安定性が規定されており、投資の進行中、投資家に対して有利な状況を提供する。国家憲法は経済と貿易の自由を保証しており、投資が規制される分野は存在せず、差別的、限定的取り扱いも一切無い。従って、自国民・外国人を問わず、あらゆる個人は国家のモラルや公共の秩序、国の安全に反する事が無い限り、該当の法規を遵守の上、あらゆる経済活動を実施する権利を有する。又、投資法(1991年発布の法律第117号)は以下の原則を定めている:
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
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areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
• 平等:外国投資は国内投資と同等の取り扱いを受ける。従って、外国投資家は差別的な条件を課されることも取り扱いを受けることも無く、又、逆に優先的な扱いを受けることも無い。
• 所有権: 内外投資家は憲法と法律が定める制限の対象物以外のあらゆる土地財産を購入することができる。
• 為替交換の自由:資本の国内外への移動が保証され、すべての為替交換や送金、資金移動に関して法律に規定される税金の支払い以外、配当金、利息、手数料、技術移転その他の事由によるロイヤリティー等の海外送金に対してなんらの規制も無い。
• 内外における投資保険の自由な契約が保証されている。
• 自由交易:以下に記載する内容を含めた自由な交易が保証されている: ▪ 一般的な財やサービスの生産と取引の自由 ▪ 法律の規制対象以外のあらゆる財やサービスの生産と売買
における自由な価格設定
▪ 法律で禁止される物以外の財とサービスの自由な貿易
これらの保証は、内外投資家が我が国の税制、労働法、社会保障制度を遵守する限り与えられる。
• 普遍性:外国投資は国内特別法によって規制される例外を除き、あらゆる部門の経済活動において歓迎される。例外とされる分野としては、監督官庁による許認可又は特定のコンセッション(営業や開発権利の移転)を必要とする炭化水素、鉱物、電気通信、林業などが挙げられる。これらの場合、投資家は、個々に定められる制度に従わねばならない。
• 自動性:上記は例外として, 外国投資家はその他のあらゆる部門への投資が認められており、特別な制度に従わねばならない種類の投資を除き、事前の許認可を求める必要は無い。特別な場合は、個々に定められている制度に準じた手続きが必要となる。
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
2014年5月、パラグアイは前年度における経済環境指数の平均値がラテンアメリカの中で最高の位置を占めた。この経済環境指数とは著名なヘテウリオ・ヴァルガス財団とミュンヘン大学のレイブニス経済研究所が判定する数値であり、ラテンアメリカ諸国の現状と今後の6か月を見通した上での経済シナリオを基に測定している。
パラグアイは安定的な法的枠組みを通じて投資に対し類の無いほどのメリットと高いインセンティブを提供する。
内外投資家に対する税制面を優遇する法律第60号/1990に加え、法律第117号/1991は内外投資家への同一取り扱いを定めており、更に2013年、パラグアイ政府は官民協力法として知られる法律第5102号“公共インフラに対する投資、及び、国有の財とサービスの拡大と改善の促進に関する法律”を承認した。
その結果、2015年以降、年間総額15億米ドルを超える予定額の大規模公共工事に対して17件以上の施行者選定の為の国際公開入札が召集されることになっている。計画中のすべての公共工事は、20年以上の長期的計画であり、以下の目的を持つ:
・運輸・流通(ロジスティック)用のインフラとサービスの 組織的発展
・効率的で複合的な方法による統合の促進
・我が国の流通(ロジスティック)回廊の多様化
・官民の連帯と権利移譲(コンセッション)を通じて将来の インフラ投資計画を促進
・国際回廊の整備
・両大洋回廊の導入
※過去12年間における公共工事への平均年次投資額は1億8,000万米ドル程度にとどまっていたにも関わらず、今後5年間はインフラ工事に75億米ドルが投資される予定である。この事実がパラグアイの発展における新しい転機となる事に疑いの余地は無い。
Paraguay o�ers unique advantages and strong incentives for foreign investments through an established legal framework.
Besides Law 60/1990 which o�ers fiscal incentives to national and international investment, and Law 117/1991 which establishes equal treatment to domestic and foreign investments, in 2013 the Government of Paraguay also approved Law 5102 on Investment Promotion in Public Infrastructure, Expansion and Improvement of Goods and Services provided by the Government, also known as Public-Private Partnership Law.
In 2015, more than 17 contracts of major public works with an annual estimated value of over US$1.5 billion are planned to go under public international tender. All of the projected works have an approximate 20-year time horizon and are aimed at:
・Organizing the development of infrastructure, transportation and logistics services of Paraguay
・Promote an e�ective multimodal integration
・Diversify the country’s logistics corridor
・Develop programs for future infrastructure investments through public-private partnerships
・Establish international corridors
・Implement a bioceanic corridor
Over the next five years, the Government of Paraguay is planning to invest around US$75 billion in infrastructure works, which is remarkable considering that the average public work invest-ment during the last 12 years was below US$180 million per year.
Examples of Infrastructure Projects Prioritized by the Paraguayan Government:
The “Golden Triangle” Asuncion-Ciudad del Este-EncarnacionThis program includes more than 800 kilometers of improvements of the current road infrastructure through Public-Private Partnerships or concessions.
Estimated investment: US$1 billion
Parana-Paraguay Waterway With an approximate extension of 1,000 kilometers, the works to be undertaken include maintenance dredging, signage improvement, and strengthening the support system for navigation.
Estimated investment: US$400 million
International Airports Upgrading ProgramsThis program aims to modernize the air transportation system by granting the operation of major airports to the private sector and provide a world class service within a regional hub concept for the transport of passengers and cargo.
Comparative advantage of the airport network in Paraguay:• Annual operating level of 98% due to optimal weather conditions • Flat topography, no more than 100 meters above sea level• Equidistance to the biggest cities in South America
Estimated investment: US$130 million in five years
Commuter Railroads of AsuncionThe objective of this project is to build 44 kilometers of double track lines, with electrical system with third rail, and five terminals. The expected demand is over 50,000 passengers per day.
Estimated investment: US$250 million
Water and Sanitation Projects The objective is to reach 100% coverage of water supply and sanitation services throughout the country.
Estimated investment: US$2.7 billion
パラグアイ政府が優先するインフラプロジェクトの例
アスンシオン-シウダー・デル・エステ-エンカルナシオンの3都市を結ぶ“黄金のトライアングル”におけるインフラ改善本計画は、公民協力とコンセッション方式による現在の道路インフラ、総延長800㎞の整備改善も含む。
予想投資額 10億米ドル
パラナ―パラグアイ河川ルート総延長距離約1,000㎞、工事は開口とメンテナンス用浚渫、信号システムの整備、航行支援システムの改善である。
予想投資額:4億米ドル
国際空港の近代化本計画の目的は民間への主要空港業務の権利譲渡(コンセッション)を通じて、空輸システムを近代化し、乗客、及び、貨物輸送の為の地域内ハブ空港としてのコンセプトに順じた世界レベルのサービスを提供することにある。パラグアイの空港網が有する比較優位性:・最上の気候条件に恵まれることから年間98%の運航率を誇る・海抜100m以下の平坦な地形・南米主要都市からの均一距離
予想投資額:当初5年間で1億3,000万米ドル
アスンシオン市近郊電車本プロジェクトの目的は複軌全長44キロ(第3軌道は電気施設用、5か所のターミナル駅舎含む)の近郊電車の運行である。予測される需要は1日当たり5万人の乗降客である。
予想投資額:2億5,000万米ドル
上下水道マスタープラン目的は上水道供給と下水サービスの国内100%の普及率達成にある。
予想投資額:官民協力による27億米ドル
Private Opportunities in Paraguay
Paraguay’s private sector also o�ers attractive investment opportunities in the following: • Food industry• Textile industry and clothing• Metalwork industry• Wire harnesses and autoparts• Shoes and leather industry• Reforestation• Logistics• Livestock production, slaughter for export• Agricultural transformation (irrigation, quality certification)• Railroad transportation for passengers• Real estate• Agribusiness• Business services• Financial sector
CONCLUSION• Paraguay o�ers the most opportunities and the best investment climate for Japanese companies in South America.
• The Japanese technology, discipline, innovation and leadership, combined with Paraguay’s young and disciplined labor force, energy, natural resources, low tax, expanding markets, and safe macroeconomic environment, o�ers a magnifi-cent opportunity to establish “win-win” alliances.
• All this, in the framework of over 78 years of cooperation and friendship.
パラグアイが民間部門に提供するチャンス
パラグアイの民間部門も又、以下のような魅力ある投資機会を提供している。 • 食料産業• 繊維・アパレル産業• 金属加工業• ワイヤーハーネス及び 自動車部品• 靴・レザー産業• 植林• ロジスティック• 畜産・輸出用家畜 解体業• 農業加工業(灌漑、品質証明) • 鉄道(乗客)運輸業• 不動産• アグリビジネス• ビジネス・サービス.• 金融部門
結論• パラグアイは南米において、日本企業にもっとも多くの チャンスと優れたビジネス環境を提供する国である。
• 日本の技術・規律正しさ・イノベーション・リーダーシップ と、パラグアイによって提供される若く規律正しい労働力 ・エネルギー・自然資源・低率の税金・拡大する市場・健全 なマクロ経済環境の融合は、日本とパラグアイの「ウインー ウイン」同盟関係を築くための素晴らしいチャンスとなる。
• これらすべては、78年にわたる両国の友好・協力関係に よるものである。
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
メルコスール ビジネス環境のランキング
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
Source: Getulio Vargas Foundation & Leibniz Institute for Economic Research - May 2014 出所:ジェトゥリオ・ヴァルガス財団 -2014年5月
MERCOSUR Business Environment Index
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
投資は長期に渡り安定的で持続的な経済成長を可能にするための法的保護を制定する、安定的で確実、かつ、透明な法的枠組みを必要とする。パラグアイは自由貿易に基づく経済制度を有しており、内外のあらゆる投資に完全な門戸を開いている。従って、政府による承認プロセスを必要としない。更に、法規や標準が変更される事が無いよう、完璧な法的安定性が規定されており、投資の進行中、投資家に対して有利な状況を提供する。国家憲法は経済と貿易の自由を保証しており、投資が規制される分野は存在せず、差別的、限定的取り扱いも一切無い。従って、自国民・外国人を問わず、あらゆる個人は国家のモラルや公共の秩序、国の安全に反する事が無い限り、該当の法規を遵守の上、あらゆる経済活動を実施する権利を有する。又、投資法(1991年発布の法律第117号)は以下の原則を定めている:
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
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areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
• 平等:外国投資は国内投資と同等の取り扱いを受ける。従って、外国投資家は差別的な条件を課されることも取り扱いを受けることも無く、又、逆に優先的な扱いを受けることも無い。
• 所有権: 内外投資家は憲法と法律が定める制限の対象物以外のあらゆる土地財産を購入することができる。
• 為替交換の自由:資本の国内外への移動が保証され、すべての為替交換や送金、資金移動に関して法律に規定される税金の支払い以外、配当金、利息、手数料、技術移転その他の事由によるロイヤリティー等の海外送金に対してなんらの規制も無い。
• 内外における投資保険の自由な契約が保証されている。
• 自由交易:以下に記載する内容を含めた自由な交易が保証されている: ▪ 一般的な財やサービスの生産と取引の自由 ▪ 法律の規制対象以外のあらゆる財やサービスの生産と売買
における自由な価格設定
▪ 法律で禁止される物以外の財とサービスの自由な貿易
これらの保証は、内外投資家が我が国の税制、労働法、社会保障制度を遵守する限り与えられる。
• 普遍性:外国投資は国内特別法によって規制される例外を除き、あらゆる部門の経済活動において歓迎される。例外とされる分野としては、監督官庁による許認可又は特定のコンセッション(営業や開発権利の移転)を必要とする炭化水素、鉱物、電気通信、林業などが挙げられる。これらの場合、投資家は、個々に定められる制度に従わねばならない。
• 自動性:上記は例外として, 外国投資家はその他のあらゆる部門への投資が認められており、特別な制度に従わねばならない種類の投資を除き、事前の許認可を求める必要は無い。特別な場合は、個々に定められている制度に準じた手続きが必要となる。
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
2014年5月、パラグアイは前年度における経済環境指数の平均値がラテンアメリカの中で最高の位置を占めた。この経済環境指数とは著名なヘテウリオ・ヴァルガス財団とミュンヘン大学のレイブニス経済研究所が判定する数値であり、ラテンアメリカ諸国の現状と今後の6か月を見通した上での経済シナリオを基に測定している。
パラグアイは安定的な法的枠組みを通じて投資に対し類の無いほどのメリットと高いインセンティブを提供する。
内外投資家に対する税制面を優遇する法律第60号/1990に加え、法律第117号/1991は内外投資家への同一取り扱いを定めており、更に2013年、パラグアイ政府は官民協力法として知られる法律第5102号“公共インフラに対する投資、及び、国有の財とサービスの拡大と改善の促進に関する法律”を承認した。
その結果、2015年以降、年間総額15億米ドルを超える予定額の大規模公共工事に対して17件以上の施行者選定の為の国際公開入札が召集されることになっている。計画中のすべての公共工事は、20年以上の長期的計画であり、以下の目的を持つ:
・運輸・流通(ロジスティック)用のインフラとサービスの 組織的発展
・効率的で複合的な方法による統合の促進
・我が国の流通(ロジスティック)回廊の多様化
・官民の連帯と権利移譲(コンセッション)を通じて将来の インフラ投資計画を促進
・国際回廊の整備
・両大洋回廊の導入
※過去12年間における公共工事への平均年次投資額は1億8,000万米ドル程度にとどまっていたにも関わらず、今後5年間はインフラ工事に75億米ドルが投資される予定である。この事実がパラグアイの発展における新しい転機となる事に疑いの余地は無い。
Paraguay o�ers unique advantages and strong incentives for foreign investments through an established legal framework.
Besides Law 60/1990 which o�ers fiscal incentives to national and international investment, and Law 117/1991 which establishes equal treatment to domestic and foreign investments, in 2013 the Government of Paraguay also approved Law 5102 on Investment Promotion in Public Infrastructure, Expansion and Improvement of Goods and Services provided by the Government, also known as Public-Private Partnership Law.
In 2015, more than 17 contracts of major public works with an annual estimated value of over US$1.5 billion are planned to go under public international tender. All of the projected works have an approximate 20-year time horizon and are aimed at:
・Organizing the development of infrastructure, transportation and logistics services of Paraguay
・Promote an e�ective multimodal integration
・Diversify the country’s logistics corridor
・Develop programs for future infrastructure investments through public-private partnerships
・Establish international corridors
・Implement a bioceanic corridor
Over the next five years, the Government of Paraguay is planning to invest around US$75 billion in infrastructure works, which is remarkable considering that the average public work invest-ment during the last 12 years was below US$180 million per year.
Examples of Infrastructure Projects Prioritized by the Paraguayan Government:
The “Golden Triangle” Asuncion-Ciudad del Este-EncarnacionThis program includes more than 800 kilometers of improvements of the current road infrastructure through Public-Private Partnerships or concessions.
Estimated investment: US$1 billion
Parana-Paraguay Waterway With an approximate extension of 1,000 kilometers, the works to be undertaken include maintenance dredging, signage improvement, and strengthening the support system for navigation.
Estimated investment: US$400 million
International Airports Upgrading ProgramsThis program aims to modernize the air transportation system by granting the operation of major airports to the private sector and provide a world class service within a regional hub concept for the transport of passengers and cargo.
Comparative advantage of the airport network in Paraguay:• Annual operating level of 98% due to optimal weather conditions • Flat topography, no more than 100 meters above sea level• Equidistance to the biggest cities in South America
Estimated investment: US$130 million in five years
Commuter Railroads of AsuncionThe objective of this project is to build 44 kilometers of double track lines, with electrical system with third rail, and five terminals. The expected demand is over 50,000 passengers per day.
Estimated investment: US$250 million
Water and Sanitation Projects The objective is to reach 100% coverage of water supply and sanitation services throughout the country.
Estimated investment: US$2.7 billion
パラグアイ政府が優先するインフラプロジェクトの例
アスンシオン-シウダー・デル・エステ-エンカルナシオンの3都市を結ぶ“黄金のトライアングル”におけるインフラ改善本計画は、公民協力とコンセッション方式による現在の道路インフラ、総延長800㎞の整備改善も含む。
予想投資額 10億米ドル
パラナ―パラグアイ河川ルート総延長距離約1,000㎞、工事は開口とメンテナンス用浚渫、信号システムの整備、航行支援システムの改善である。
予想投資額:4億米ドル
国際空港の近代化本計画の目的は民間への主要空港業務の権利譲渡(コンセッション)を通じて、空輸システムを近代化し、乗客、及び、貨物輸送の為の地域内ハブ空港としてのコンセプトに順じた世界レベルのサービスを提供することにある。パラグアイの空港網が有する比較優位性:・最上の気候条件に恵まれることから年間98%の運航率を誇る・海抜100m以下の平坦な地形・南米主要都市からの均一距離
予想投資額:当初5年間で1億3,000万米ドル
アスンシオン市近郊電車本プロジェクトの目的は複軌全長44キロ(第3軌道は電気施設用、5か所のターミナル駅舎含む)の近郊電車の運行である。予測される需要は1日当たり5万人の乗降客である。
予想投資額:2億5,000万米ドル
上下水道マスタープラン目的は上水道供給と下水サービスの国内100%の普及率達成にある。
予想投資額:官民協力による27億米ドル
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Private Opportunities in Paraguay
Paraguay’s private sector also o�ers attractive investment opportunities in the following: • Food industry• Textile industry and clothing• Metalwork industry• Wire harnesses and autoparts• Shoes and leather industry• Reforestation• Logistics• Livestock production, slaughter for export• Agricultural transformation (irrigation, quality certification)• Railroad transportation for passengers• Real estate• Agribusiness• Business services• Financial sector
CONCLUSION• Paraguay o�ers the most opportunities and the best investment climate for Japanese companies in South America.
• The Japanese technology, discipline, innovation and leadership, combined with Paraguay’s young and disciplined labor force, energy, natural resources, low tax, expanding markets, and safe macroeconomic environment, o�ers a magnifi-cent opportunity to establish “win-win” alliances.
• All this, in the framework of over 78 years of cooperation and friendship.
パラグアイが民間部門に提供するチャンス
パラグアイの民間部門も又、以下のような魅力ある投資機会を提供している。 • 食料産業• 繊維・アパレル産業• 金属加工業• ワイヤーハーネス及び 自動車部品• 靴・レザー産業• 植林• ロジスティック• 畜産・輸出用家畜 解体業• 農業加工業(灌漑、品質証明) • 鉄道(乗客)運輸業• 不動産• アグリビジネス• ビジネス・サービス.• 金融部門
結論• パラグアイは南米において、日本企業にもっとも多くの チャンスと優れたビジネス環境を提供する国である。
• 日本の技術・規律正しさ・イノベーション・リーダーシップ と、パラグアイによって提供される若く規律正しい労働力 ・エネルギー・自然資源・低率の税金・拡大する市場・健全 なマクロ経済環境の融合は、日本とパラグアイの「ウインー ウイン」同盟関係を築くための素晴らしいチャンスとなる。
• これらすべては、78年にわたる両国の友好・協力関係に よるものである。
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Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Light Bulb designed by Francesco Terzini, Money Transfer designed by Lemon Liu, Mint designed by Botho Willer, chart designed by Ethan Clark, Mate designed by Joseph Pearce, Soy designed by Lemon Liu, Oil designed by Edward Boatman, Steak designed by Anuar Zhumaev, Wheat designed by Andrea Caldarelli from the thenounproject.com
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
Paraguay’s International Trade Position 貿易においてパラグアイが占める位置
パラグアイは安定的な法的枠組みを通じて投資に対し類の無いほどのメリットと高いインセンティブを提供する。
内外投資家に対する税制面を優遇する法律第60号/1990に加え、法律第117号/1991は内外投資家への同一取り扱いを定めており、更に2013年、パラグアイ政府は官民協力法として知られる法律第5102号“公共インフラに対する投資、及び、国有の財とサービスの拡大と改善の促進に関する法律”を承認した。
その結果、2015年以降、年間総額15億米ドルを超える予定額の大規模公共工事に対して17件以上の施行者選定の為の国際公開入札が召集されることになっている。計画中のすべての公共工事は、20年以上の長期的計画であり、以下の目的を持つ:
・運輸・流通(ロジスティック)用のインフラとサービスの 組織的発展
・効率的で複合的な方法による統合の促進
・我が国の流通(ロジスティック)回廊の多様化
・官民の連帯と権利移譲(コンセッション)を通じて将来の インフラ投資計画を促進
・国際回廊の整備
・両大洋回廊の導入
※過去12年間における公共工事への平均年次投資額は1億8,000万米ドル程度にとどまっていたにも関わらず、今後5年間はインフラ工事に75億米ドルが投資される予定である。この事実がパラグアイの発展における新しい転機となる事に疑いの余地は無い。
Paraguay o�ers unique advantages and strong incentives for foreign investments through an established legal framework.
Besides Law 60/1990 which o�ers fiscal incentives to national and international investment, and Law 117/1991 which establishes equal treatment to domestic and foreign investments, in 2013 the Government of Paraguay also approved Law 5102 on Investment Promotion in Public Infrastructure, Expansion and Improvement of Goods and Services provided by the Government, also known as Public-Private Partnership Law.
In 2015, more than 17 contracts of major public works with an annual estimated value of over US$1.5 billion are planned to go under public international tender. All of the projected works have an approximate 20-year time horizon and are aimed at:
・Organizing the development of infrastructure, transportation and logistics services of Paraguay
・Promote an e�ective multimodal integration
・Diversify the country’s logistics corridor
・Develop programs for future infrastructure investments through public-private partnerships
・Establish international corridors
・Implement a bioceanic corridor
Over the next five years, the Government of Paraguay is planning to invest around US$75 billion in infrastructure works, which is remarkable considering that the average public work invest-ment during the last 12 years was below US$180 million per year.
Examples of Infrastructure Projects Prioritized by the Paraguayan Government:
The “Golden Triangle” Asuncion-Ciudad del Este-EncarnacionThis program includes more than 800 kilometers of improvements of the current road infrastructure through Public-Private Partnerships or concessions.
Estimated investment: US$1 billion
Parana-Paraguay Waterway With an approximate extension of 1,000 kilometers, the works to be undertaken include maintenance dredging, signage improvement, and strengthening the support system for navigation.
Estimated investment: US$400 million
International Airports Upgrading ProgramsThis program aims to modernize the air transportation system by granting the operation of major airports to the private sector and provide a world class service within a regional hub concept for the transport of passengers and cargo.
Comparative advantage of the airport network in Paraguay:• Annual operating level of 98% due to optimal weather conditions • Flat topography, no more than 100 meters above sea level• Equidistance to the biggest cities in South America
Estimated investment: US$130 million in five years
Commuter Railroads of AsuncionThe objective of this project is to build 44 kilometers of double track lines, with electrical system with third rail, and five terminals. The expected demand is over 50,000 passengers per day.
Estimated investment: US$250 million
Water and Sanitation Projects The objective is to reach 100% coverage of water supply and sanitation services throughout the country.
Estimated investment: US$2.7 billion
パラグアイ政府が優先するインフラプロジェクトの例
アスンシオン-シウダー・デル・エステ-エンカルナシオンの3都市を結ぶ“黄金のトライアングル”におけるインフラ改善本計画は、公民協力とコンセッション方式による現在の道路インフラ、総延長800㎞の整備改善も含む。
予想投資額 10億米ドル
パラナ―パラグアイ河川ルート総延長距離約1,000㎞、工事は開口とメンテナンス用浚渫、信号システムの整備、航行支援システムの改善である。
予想投資額:4億米ドル
国際空港の近代化本計画の目的は民間への主要空港業務の権利譲渡(コンセッション)を通じて、空輸システムを近代化し、乗客、及び、貨物輸送の為の地域内ハブ空港としてのコンセプトに順じた世界レベルのサービスを提供することにある。パラグアイの空港網が有する比較優位性:・最上の気候条件に恵まれることから年間98%の運航率を誇る・海抜100m以下の平坦な地形・南米主要都市からの均一距離
予想投資額:当初5年間で1億3,000万米ドル
アスンシオン市近郊電車本プロジェクトの目的は複軌全長44キロ(第3軌道は電気施設用、5か所のターミナル駅舎含む)の近郊電車の運行である。予測される需要は1日当たり5万人の乗降客である。
予想投資額:2億5,000万米ドル
上下水道マスタープラン目的は上水道供給と下水サービスの国内100%の普及率達成にある。
予想投資額:官民協力による27億米ドル
No. 1 largest exporter of clean electricity in the world
No. 2 highest Return on Investment (ROI) for direct foreign investment in Latin America (CEPAL 2014).
No. 1 in currency stability in Latin America
世界第1位のクリーン電力の輸出国
No. 3 largest economic growth in the world in 2013 (13.6%)2013年の世界における経済成長率において第三位(13.6%)
No. 3 largest producer and exporter of yerba mate (ilex paraguariensis) in the world世界第3位のマテ茶葉(ilex paraguariensis)の生産及び輸出国
No. 3 largest �eet of barges in the world (2,200 barges and 200 tugs), No. 1 USA, No. 2 China.
世界第3位のバージ船(はしけ)の所有国(バージ船2200隻、タグ ボート200隻)第1位はアメリカ合衆国、第2位は中国
ラテンアメリカにおいて、外国投資に対する投資回収率(ROI)が第二位(CEPAL2014年)
No. 2 largest producer and exporter of stevia in the world世界第2位のステヴィアの生産及び輸出国
ラテンアメリカにおいて、為替安定率は第一位
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Private Opportunities in Paraguay
Paraguay’s private sector also o�ers attractive investment opportunities in the following: • Food industry• Textile industry and clothing• Metalwork industry• Wire harnesses and autoparts• Shoes and leather industry• Reforestation• Logistics• Livestock production, slaughter for export• Agricultural transformation (irrigation, quality certification)• Railroad transportation for passengers• Real estate• Agribusiness• Business services• Financial sector
CONCLUSION• Paraguay o�ers the most opportunities and the best investment climate for Japanese companies in South America.
• The Japanese technology, discipline, innovation and leadership, combined with Paraguay’s young and disciplined labor force, energy, natural resources, low tax, expanding markets, and safe macroeconomic environment, o�ers a magnifi-cent opportunity to establish “win-win” alliances.
• All this, in the framework of over 78 years of cooperation and friendship.
パラグアイが民間部門に提供するチャンス
パラグアイの民間部門も又、以下のような魅力ある投資機会を提供している。 • 食料産業• 繊維・アパレル産業• 金属加工業• ワイヤーハーネス及び 自動車部品• 靴・レザー産業• 植林• ロジスティック• 畜産・輸出用家畜 解体業• 農業加工業(灌漑、品質証明) • 鉄道(乗客)運輸業• 不動産• アグリビジネス• ビジネス・サービス.• 金融部門
結論• パラグアイは南米において、日本企業にもっとも多くの チャンスと優れたビジネス環境を提供する国である。
• 日本の技術・規律正しさ・イノベーション・リーダーシップ と、パラグアイによって提供される若く規律正しい労働力 ・エネルギー・自然資源・低率の税金・拡大する市場・健全 なマクロ経済環境の融合は、日本とパラグアイの「ウインー ウイン」同盟関係を築くための素晴らしいチャンスとなる。
• これらすべては、78年にわたる両国の友好・協力関係に よるものである。
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Light Bulb designed by Francesco Terzini, Money Transfer designed by Lemon Liu, Mint designed by Botho Willer, chart designed by Ethan Clark, Mate designed by Joseph Pearce, Soy designed by Lemon Liu, Oil designed by Edward Boatman, Steak designed by Anuar Zhumaev, Wheat designed by Andrea Caldarelli from the thenounproject.com
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
21
パラグアイは安定的な法的枠組みを通じて投資に対し類の無いほどのメリットと高いインセンティブを提供する。
内外投資家に対する税制面を優遇する法律第60号/1990に加え、法律第117号/1991は内外投資家への同一取り扱いを定めており、更に2013年、パラグアイ政府は官民協力法として知られる法律第5102号“公共インフラに対する投資、及び、国有の財とサービスの拡大と改善の促進に関する法律”を承認した。
その結果、2015年以降、年間総額15億米ドルを超える予定額の大規模公共工事に対して17件以上の施行者選定の為の国際公開入札が召集されることになっている。計画中のすべての公共工事は、20年以上の長期的計画であり、以下の目的を持つ:
・運輸・流通(ロジスティック)用のインフラとサービスの 組織的発展
・効率的で複合的な方法による統合の促進
・我が国の流通(ロジスティック)回廊の多様化
・官民の連帯と権利移譲(コンセッション)を通じて将来の インフラ投資計画を促進
・国際回廊の整備
・両大洋回廊の導入
※過去12年間における公共工事への平均年次投資額は1億8,000万米ドル程度にとどまっていたにも関わらず、今後5年間はインフラ工事に75億米ドルが投資される予定である。この事実がパラグアイの発展における新しい転機となる事に疑いの余地は無い。
Paraguay o�ers unique advantages and strong incentives for foreign investments through an established legal framework.
Besides Law 60/1990 which o�ers fiscal incentives to national and international investment, and Law 117/1991 which establishes equal treatment to domestic and foreign investments, in 2013 the Government of Paraguay also approved Law 5102 on Investment Promotion in Public Infrastructure, Expansion and Improvement of Goods and Services provided by the Government, also known as Public-Private Partnership Law.
In 2015, more than 17 contracts of major public works with an annual estimated value of over US$1.5 billion are planned to go under public international tender. All of the projected works have an approximate 20-year time horizon and are aimed at:
・Organizing the development of infrastructure, transportation and logistics services of Paraguay
・Promote an e�ective multimodal integration
・Diversify the country’s logistics corridor
・Develop programs for future infrastructure investments through public-private partnerships
・Establish international corridors
・Implement a bioceanic corridor
Over the next five years, the Government of Paraguay is planning to invest around US$75 billion in infrastructure works, which is remarkable considering that the average public work invest-ment during the last 12 years was below US$180 million per year.
Examples of Infrastructure Projects Prioritized by the Paraguayan Government:
The “Golden Triangle” Asuncion-Ciudad del Este-EncarnacionThis program includes more than 800 kilometers of improvements of the current road infrastructure through Public-Private Partnerships or concessions.
Estimated investment: US$1 billion
Parana-Paraguay Waterway With an approximate extension of 1,000 kilometers, the works to be undertaken include maintenance dredging, signage improvement, and strengthening the support system for navigation.
Estimated investment: US$400 million
International Airports Upgrading ProgramsThis program aims to modernize the air transportation system by granting the operation of major airports to the private sector and provide a world class service within a regional hub concept for the transport of passengers and cargo.
Comparative advantage of the airport network in Paraguay:• Annual operating level of 98% due to optimal weather conditions • Flat topography, no more than 100 meters above sea level• Equidistance to the biggest cities in South America
Estimated investment: US$130 million in five years
Commuter Railroads of AsuncionThe objective of this project is to build 44 kilometers of double track lines, with electrical system with third rail, and five terminals. The expected demand is over 50,000 passengers per day.
Estimated investment: US$250 million
Water and Sanitation Projects The objective is to reach 100% coverage of water supply and sanitation services throughout the country.
Estimated investment: US$2.7 billion
パラグアイ政府が優先するインフラプロジェクトの例
アスンシオン-シウダー・デル・エステ-エンカルナシオンの3都市を結ぶ“黄金のトライアングル”におけるインフラ改善本計画は、公民協力とコンセッション方式による現在の道路インフラ、総延長800㎞の整備改善も含む。
予想投資額 10億米ドル
パラナ―パラグアイ河川ルート総延長距離約1,000㎞、工事は開口とメンテナンス用浚渫、信号システムの整備、航行支援システムの改善である。
予想投資額:4億米ドル
国際空港の近代化本計画の目的は民間への主要空港業務の権利譲渡(コンセッション)を通じて、空輸システムを近代化し、乗客、及び、貨物輸送の為の地域内ハブ空港としてのコンセプトに順じた世界レベルのサービスを提供することにある。パラグアイの空港網が有する比較優位性:・最上の気候条件に恵まれることから年間98%の運航率を誇る・海抜100m以下の平坦な地形・南米主要都市からの均一距離
予想投資額:当初5年間で1億3,000万米ドル
アスンシオン市近郊電車本プロジェクトの目的は複軌全長44キロ(第3軌道は電気施設用、5か所のターミナル駅舎含む)の近郊電車の運行である。予測される需要は1日当たり5万人の乗降客である。
予想投資額:2億5,000万米ドル
上下水道マスタープラン目的は上水道供給と下水サービスの国内100%の普及率達成にある。
予想投資額:官民協力による27億米ドル
No. 4largest exporter of soybean in the world世界第4位の大豆の輸出国
No. 6largest producer of soybean in the world世界第6位の大豆の生産国
No. 6largest exporter of corn in the world世界第6位のとうもろこしの輸出国
No. 6largest exporter of beef in the world世界第6位の食肉の輸出国
No. 10largest exporter of wheat in the world世界第10位の小麦の輸出国
No. 4largest exporter of soybean oil in the world世界第4位の大豆油輸出国
No. 5largest exporter of soybean expeller in the world世界第5位の大豆搾りかすの輸出国
No. 4largest exporter of yuca starch in the world世界第4位のユカ(芋)スターチの輸出国
Paraguay’s International Trade P
osition
Private Opportunities in Paraguay
Paraguay’s private sector also o�ers attractive investment opportunities in the following: • Food industry• Textile industry and clothing• Metalwork industry• Wire harnesses and autoparts• Shoes and leather industry• Reforestation• Logistics• Livestock production, slaughter for export• Agricultural transformation (irrigation, quality certification)• Railroad transportation for passengers• Real estate• Agribusiness• Business services• Financial sector
CONCLUSION• Paraguay o�ers the most opportunities and the best investment climate for Japanese companies in South America.
• The Japanese technology, discipline, innovation and leadership, combined with Paraguay’s young and disciplined labor force, energy, natural resources, low tax, expanding markets, and safe macroeconomic environment, o�ers a magnifi-cent opportunity to establish “win-win” alliances.
• All this, in the framework of over 78 years of cooperation and friendship.
パラグアイが民間部門に提供するチャンス
パラグアイの民間部門も又、以下のような魅力ある投資機会を提供している。 • 食料産業• 繊維・アパレル産業• 金属加工業• ワイヤーハーネス及び 自動車部品• 靴・レザー産業• 植林• ロジスティック• 畜産・輸出用家畜 解体業• 農業加工業(灌漑、品質証明) • 鉄道(乗客)運輸業• 不動産• アグリビジネス• ビジネス・サービス.• 金融部門
結論• パラグアイは南米において、日本企業にもっとも多くの チャンスと優れたビジネス環境を提供する国である。
• 日本の技術・規律正しさ・イノベーション・リーダーシップ と、パラグアイによって提供される若く規律正しい労働力 ・エネルギー・自然資源・低率の税金・拡大する市場・健全 なマクロ経済環境の融合は、日本とパラグアイの「ウインー ウイン」同盟関係を築くための素晴らしいチャンスとなる。
• これらすべては、78年にわたる両国の友好・協力関係に よるものである。
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
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パラグアイは安定的な法的枠組みを通じて投資に対し類の無いほどのメリットと高いインセンティブを提供する。
内外投資家に対する税制面を優遇する法律第60号/1990に加え、法律第117号/1991は内外投資家への同一取り扱いを定めており、更に2013年、パラグアイ政府は官民協力法として知られる法律第5102号“公共インフラに対する投資、及び、国有の財とサービスの拡大と改善の促進に関する法律”を承認した。
その結果、2015年以降、年間総額15億米ドルを超える予定額の大規模公共工事に対して17件以上の施行者選定の為の国際公開入札が召集されることになっている。計画中のすべての公共工事は、20年以上の長期的計画であり、以下の目的を持つ:
・運輸・流通(ロジスティック)用のインフラとサービスの 組織的発展
・効率的で複合的な方法による統合の促進
・我が国の流通(ロジスティック)回廊の多様化
・官民の連帯と権利移譲(コンセッション)を通じて将来の インフラ投資計画を促進
・国際回廊の整備
・両大洋回廊の導入
※過去12年間における公共工事への平均年次投資額は1億8,000万米ドル程度にとどまっていたにも関わらず、今後5年間はインフラ工事に75億米ドルが投資される予定である。この事実がパラグアイの発展における新しい転機となる事に疑いの余地は無い。
Paraguay o�ers unique advantages and strong incentives for foreign investments through an established legal framework.
Besides Law 60/1990 which o�ers fiscal incentives to national and international investment, and Law 117/1991 which establishes equal treatment to domestic and foreign investments, in 2013 the Government of Paraguay also approved Law 5102 on Investment Promotion in Public Infrastructure, Expansion and Improvement of Goods and Services provided by the Government, also known as Public-Private Partnership Law.
In 2015, more than 17 contracts of major public works with an annual estimated value of over US$1.5 billion are planned to go under public international tender. All of the projected works have an approximate 20-year time horizon and are aimed at:
・Organizing the development of infrastructure, transportation and logistics services of Paraguay
・Promote an e�ective multimodal integration
・Diversify the country’s logistics corridor
・Develop programs for future infrastructure investments through public-private partnerships
・Establish international corridors
・Implement a bioceanic corridor
Over the next five years, the Government of Paraguay is planning to invest around US$75 billion in infrastructure works, which is remarkable considering that the average public work invest-ment during the last 12 years was below US$180 million per year.
Examples of Infrastructure Projects Prioritized by the Paraguayan Government:
The “Golden Triangle” Asuncion-Ciudad del Este-EncarnacionThis program includes more than 800 kilometers of improvements of the current road infrastructure through Public-Private Partnerships or concessions.
Estimated investment: US$1 billion
Parana-Paraguay Waterway With an approximate extension of 1,000 kilometers, the works to be undertaken include maintenance dredging, signage improvement, and strengthening the support system for navigation.
Estimated investment: US$400 million
International Airports Upgrading ProgramsThis program aims to modernize the air transportation system by granting the operation of major airports to the private sector and provide a world class service within a regional hub concept for the transport of passengers and cargo.
Comparative advantage of the airport network in Paraguay:• Annual operating level of 98% due to optimal weather conditions • Flat topography, no more than 100 meters above sea level• Equidistance to the biggest cities in South America
Estimated investment: US$130 million in five years
Commuter Railroads of AsuncionThe objective of this project is to build 44 kilometers of double track lines, with electrical system with third rail, and five terminals. The expected demand is over 50,000 passengers per day.
Estimated investment: US$250 million
Water and Sanitation Projects The objective is to reach 100% coverage of water supply and sanitation services throughout the country.
Estimated investment: US$2.7 billion
パラグアイ政府が優先するインフラプロジェクトの例
アスンシオン-シウダー・デル・エステ-エンカルナシオンの3都市を結ぶ“黄金のトライアングル”におけるインフラ改善本計画は、公民協力とコンセッション方式による現在の道路インフラ、総延長800㎞の整備改善も含む。
予想投資額 10億米ドル
パラナ―パラグアイ河川ルート総延長距離約1,000㎞、工事は開口とメンテナンス用浚渫、信号システムの整備、航行支援システムの改善である。
予想投資額:4億米ドル
国際空港の近代化本計画の目的は民間への主要空港業務の権利譲渡(コンセッション)を通じて、空輸システムを近代化し、乗客、及び、貨物輸送の為の地域内ハブ空港としてのコンセプトに順じた世界レベルのサービスを提供することにある。パラグアイの空港網が有する比較優位性:・最上の気候条件に恵まれることから年間98%の運航率を誇る・海抜100m以下の平坦な地形・南米主要都市からの均一距離
予想投資額:当初5年間で1億3,000万米ドル
アスンシオン市近郊電車本プロジェクトの目的は複軌全長44キロ(第3軌道は電気施設用、5か所のターミナル駅舎含む)の近郊電車の運行である。予測される需要は1日当たり5万人の乗降客である。
予想投資額:2億5,000万米ドル
上下水道マスタープラン目的は上水道供給と下水サービスの国内100%の普及率達成にある。
予想投資額:官民協力による27億米ドル
Investment Opportunities投資機会
Private Opportunities in Paraguay
Paraguay’s private sector also o�ers attractive investment opportunities in the following: • Food industry• Textile industry and clothing• Metalwork industry• Wire harnesses and autoparts• Shoes and leather industry• Reforestation• Logistics• Livestock production, slaughter for export• Agricultural transformation (irrigation, quality certification)• Railroad transportation for passengers• Real estate• Agribusiness• Business services• Financial sector
CONCLUSION• Paraguay o�ers the most opportunities and the best investment climate for Japanese companies in South America.
• The Japanese technology, discipline, innovation and leadership, combined with Paraguay’s young and disciplined labor force, energy, natural resources, low tax, expanding markets, and safe macroeconomic environment, o�ers a magnifi-cent opportunity to establish “win-win” alliances.
• All this, in the framework of over 78 years of cooperation and friendship.
パラグアイが民間部門に提供するチャンス
パラグアイの民間部門も又、以下のような魅力ある投資機会を提供している。 • 食料産業• 繊維・アパレル産業• 金属加工業• ワイヤーハーネス及び 自動車部品• 靴・レザー産業• 植林• ロジスティック• 畜産・輸出用家畜 解体業• 農業加工業(灌漑、品質証明) • 鉄道(乗客)運輸業• 不動産• アグリビジネス• ビジネス・サービス.• 金融部門
結論• パラグアイは南米において、日本企業にもっとも多くの チャンスと優れたビジネス環境を提供する国である。
• 日本の技術・規律正しさ・イノベーション・リーダーシップ と、パラグアイによって提供される若く規律正しい労働力 ・エネルギー・自然資源・低率の税金・拡大する市場・健全 なマクロ経済環境の融合は、日本とパラグアイの「ウインー ウイン」同盟関係を築くための素晴らしいチャンスとなる。
• これらすべては、78年にわたる両国の友好・協力関係に よるものである。
Paraguay is part of the MERCOSUR (Southern Cone Common Market) which allows it to have free access to a market of more than 300 million people. With its strategic location, Paraguay is just two hours away by plane from Buenos Aires, Sao Paulo, Montevideo or Santiago. It is located in the center of the bioceanic corridor, currently under construction, which allows easy access to the most important ports and markets of the region, as well as to free ports located both in the Atlantic and in the Pacific Oceans.
Most Paraguayan exports go through the Paraguay-Parana waterway in barges to Buenos Aires, Montevi-deo and Rosario. Local routes connect Asuncion to border cities Ciudad del Este and Encarnacion which allow convenient access to Brazil and Argentina.
Besides being a founder and full member of MERCOSUR (consisting also of Argentina, Brazil, Uruguay and Venezuela), which allows its exports to enter said countries with tari� exemptions, Paraguay is also an o�cial observer to the Pacific Alliance and candidate for future membership.
Since 2014, Paraguay is the only MERCOSUR country with preferential access to the European Union as part of the Generalized Scheme of Preferences (GSP+). Paraguay has been a member of the World Trade Organization since 1995. It has never been involved in disputed cases neither as complainant nor respond-ent.
• Young and trainable labor force: Paraguay has the youngest population in Latin America with 73.7% of them younger than 34 years old. Its labor costs are among the most competitive in the MERCOSUR region.
• Clean electric energy at low cost: Paraguay has the most abundant and one of the cheapest electric energy sources of the MERCOSUR. Electro intensive industries can access the best infrastructure required for their technological development. Paraguay is the biggest exporter of electricity thanks to its three hydroelectric dams: Itaipu, Yacyreta and Acaray, with the possibility of the construction of several others. Itaipu is a binational enterprise between Paraguay and Brazil. It is the world’s greatest hydroelectric dam in terms of power generation, its installed capacity is 14,000 (MG) Megawatts and it produces around 90,000 (GW) Gigawatts/hour. Paraguay only uses around 13% of the energy produced; generating electricity at a very low price. Besides the production of Itaipu, the dam of Yacyreta, built together with Argentina, places Paraguay as the world’s first exporter of 100% renewable energy, free of gas emissions that produce the “greenhouse e�ect”.
• Land: Real estate prices are very competitive. In the past decade, Asuncion was declared the world’s cheapest capital city five times in a row by Mercer Human Resource Consulting.
• Lowest Tax Burden in the Region: Paraguay o�ers a very competitive tax scheme with the lowest rates in the region, which translates in lower production costs for those companies operating within its national territory.
Paraguay o�ers a healthy environment for investment characterized by a predictable economy and controlled level of inflation. In the past decade, Paraguay experienced a solid average economic growth of 4.76% annually, among the highest in the region. In 2013, Paraguay’s GDP growth was the third highest in the world with 13.6%.
Paraguay has never experienced high rates of inflation and its currency (the Guarani) recently celebrated its seventieth anniversary, without su�ering any changes of denomination since its conception.
Paraguay o�ers a financial system with a sound capital position and a steady improvement in credit rating, as well as free capital mobility. Average earnings and remittances between 2000 and 2012 were US$376 million.
In 2014, Paraguay with a 22% ROI is the second most profitable country in Latin America for Foreign Direct Investment (FDI). Peru ranked first with 25%. Source: CEPAL (2014’s Regional Forecast) The Paraguayan tax system is simple and convenient. The investment law grants the same treatment to
foreign and local investors. Paraguay has signed security agreements for investments with many coun-tries. There are many special investment regimes, such as the Law 60/1990, the Maquila Regime and the Duty-Free Zones.
I. Law 60/1990 According to Law 60/1990, national or foreign investment projects that are approved for this regime will be exempt from the following charges:
• Fees and internal taxes on the imports of capital goods, raw material and inputs intended for local industry and foreseen in the investment project.
• Value added tax when acquiring capital goods that will be used in industrial, agricultural or livestock production cycle.
• All taxes imposed on the establishment, incorporation and registration of companies or enterprises.
• Taxes on remittances abroad for the payment of interest and commissions and reimbursement of capital (levied on investments over US$5 million).
• Taxes and other fees on remittances abroad for the payment of interest and commissions and reimbursement of capital when the investment is financed from abroad and is more than US$5 million.
Investment projects that want to benefit from this law need to receive approval from the Ministry of Industry and Commerce and the Ministry of Finance.
Eligible InvestmentsThe exemptions established in Law 60/1990 are applicable to investments in financing, capital goods, specialized technical assistance, mining, hotel, leasing of capital goods, provision of cargo and air passenger transport services, public transporta-tion, health, radio, television, press, rural and urban fixed telephone services, mobile telephone services, scientific investigation, silos, storage and data transmission services, among others.
II. Maquila Regime
Maquila is a production regime in which companies located in Paraguay can produce goods and services for export. The production is done under the request of a foreign company (headquarters) through an international contract, and the production can be sent to any country in the world.
The main benefits this regime o�ers are:
• Exemption of import duties on raw material, inputs, parts and components that enter the country temporarily for their transformation and later export.
• Exemption of import duties on machinery and equipment related to the Maquila activity during the period established in the contract.
• Possibility of national goods and services provision as a complement to the Maquila production system.
• Single tax of 1% to be levied on the value added in national territory.
Companies interested in carrying out Maquila activities must present a “Maquila Program” to the National Council for the Maquila Export Industries (CNIME).
Maquila companies with approved programs must provide su�cient guarantee to the General Customs O�ce for the amount of the taxes that may eventually be applicable, which shall be canceled and returned when the temporarily imported merchandise exit the country. Whichever type of guarantee presented – global or floating – it will be exempt from all types of taxes and interests. This guarantee is also applicable when goods, products or services are under the Maquila temporal export regime.
Within MERCOSUR, Paraguay has the most competitive “rules of origin”: up to 60% of inputs can be of extra zone origin, while only 40% of inputs are required to claim MERCOSUR sources origin. This allows tari�-free market access to the entire region.
III. Duty-Free ZonesParaguay o�ers a free trade zones regime for the establishment of commercial, industrial and services enterprises. Companies established in a free trade zone whose activities are focused exclusively on exports pay a single tax of 0.5% of the total value of gross export income, known as “free trade zone tax”.Companies which, beside their exports, also sell their products or services in the Paraguayan territory are subject to Corporate Income Tax of 10% of the proportion of products sold in national territory.Under this regime, machinery, capital goods and raw material enter the Free Trade Zone with a 0% import tax. The commercial exchange of goods and services between Free Trade Zone users, as well the stocking of raw materials and goods, are tax exempt.There are currently two free zones in the region of Alto Parana, bordering Brazil and Argentina, in which several international companies are actively operating.
IV. Exports Incentives
Exports are exempted from paying Value Added Tax (VAT), since the government recognizes a fiscal credit for stages preceding production. There is also a Temporary Admission Regime for imports, which allows the exemption of import duties and VAT.
Investments need a legal framework that is stable, safe and transparent, that would give legal protection to investors so that the invest-ments could be long term, accomplishing stability and sustainable economic growth with them.Paraguay has an economic system based on free trade and as such there is a total openness to all national and foreign investments – no authoriza-tion from the government is necessary.Furthermore, it has full legal stability because dispositions and economic regulations do not change in an untimely way, an advantageous situation for the investor, having the certainty that in the process of investing the rules will not be changed. The National Constitution guarantees economic and commercial freedom, there are no restricted
areas for investment, nor discriminatory treatment or limitations. Therefore, every national or foreign individual has the right to develop any economic activity of their preference as long as it is not contrary to the morals of the nation, public order or national security, respecting the legal norms that regulate it. At the same time, the Investment Law Nr. 117/91 establishes the following principles:
• Equality: Foreign investment receives the same treatment as a national one. Consequently, it is not admissible to impose neither conditions nor discrimi-natory or favorable treatment to national and or foreign investments.
• Property rights: National and foreign investors can acquire goods and real estate in Paraguay, with no other limitation than the ones established in the Constitution and national laws.
• Free exchange: This law guarantees the inflow and outflow of capital, the remittance of dividends, interests, commissions, royalties for transfer of technology and others without restrictions. However, all foreign exchange transactions, remittances or transfers shall be subject to taxation as established by law.
• Freedom to hire investment insurance locally or abroad.
• Freedom of commerce:
▪ Freedom to produce and commercialize goods and services
▪ Free price-setting, with the exception of those goods and services which have production and commercialization regulated by law
▪ Freedom to import and export goods and services, with the exception of those prohibited by law
National and foreign investors shall benefit from these guarantees provided they comply with the Tax, Work and Social Security Regimes.
• Universality: Foreign investments are welcome in all sectors of the economy, with the exception of those included in specific local laws, such as: hydrocarbons sector, mining, telecommunications, forestry and others which require special permits, licenses or concessions granted by the local authority.
• Automaticity: With the exceptions aforementioned, foreign investors are authorized to invest in any other sector of the economy without needing prior authori-zation, unless the investment is subject to a special regime. In such case, the investor must follow the procedures established by such regime.
In May 2014, Paraguay ranked first in Latin America with the highest average Business Environment Index (BEI) for the past year. The BEI is constructed by the renowned Getulio Vargas Foundation (GVF) and the Leibniz Institute for Economic Research of the University of Munich to measure Latin American countries' current economic scenario and their expected situation in the following six months.
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パラグアイは安定的な法的枠組みを通じて投資に対し類の無いほどのメリットと高いインセンティブを提供する。
内外投資家に対する税制面を優遇する法律第60号/1990に加え、法律第117号/1991は内外投資家への同一取り扱いを定めており、更に2013年、パラグアイ政府は官民協力法として知られる法律第5102号“公共インフラに対する投資、及び、国有の財とサービスの拡大と改善の促進に関する法律”を承認した。
その結果、2015年以降、年間総額15億米ドルを超える予定額の大規模公共工事に対して17件以上の施行者選定の為の国際公開入札が召集されることになっている。計画中のすべての公共工事は、20年以上の長期的計画であり、以下の目的を持つ:
・運輸・流通(ロジスティック)用のインフラとサービスの 組織的発展
・効率的で複合的な方法による統合の促進
・我が国の流通(ロジスティック)回廊の多様化
・官民の連帯と権利移譲(コンセッション)を通じて将来の インフラ投資計画を促進
・国際回廊の整備
・両大洋回廊の導入
※過去12年間における公共工事への平均年次投資額は1億8,000万米ドル程度にとどまっていたにも関わらず、今後5年間はインフラ工事に75億米ドルが投資される予定である。この事実がパラグアイの発展における新しい転機となる事に疑いの余地は無い。
Paraguay o�ers unique advantages and strong incentives for foreign investments through an established legal framework.
Besides Law 60/1990 which o�ers fiscal incentives to national and international investment, and Law 117/1991 which establishes equal treatment to domestic and foreign investments, in 2013 the Government of Paraguay also approved Law 5102 on Investment Promotion in Public Infrastructure, Expansion and Improvement of Goods and Services provided by the Government, also known as Public-Private Partnership Law.
In 2015, more than 17 contracts of major public works with an annual estimated value of over US$1.5 billion are planned to go under public international tender. All of the projected works have an approximate 20-year time horizon and are aimed at:
・Organizing the development of infrastructure, transportation and logistics services of Paraguay
・Promote an e�ective multimodal integration
・Diversify the country’s logistics corridor
・Develop programs for future infrastructure investments through public-private partnerships
・Establish international corridors
・Implement a bioceanic corridor
Over the next five years, the Government of Paraguay is planning to invest around US$75 billion in infrastructure works, which is remarkable considering that the average public work invest-ment during the last 12 years was below US$180 million per year.
Examples of Infrastructure Projects Prioritized by the Paraguayan Government:
The “Golden Triangle” Asuncion-Ciudad del Este-EncarnacionThis program includes more than 800 kilometers of improvements of the current road infrastructure through Public-Private Partnerships or concessions.
Estimated investment: US$1 billion
Parana-Paraguay Waterway With an approximate extension of 1,000 kilometers, the works to be undertaken include maintenance dredging, signage improvement, and strengthening the support system for navigation.
Estimated investment: US$400 million
International Airports Upgrading ProgramsThis program aims to modernize the air transportation system by granting the operation of major airports to the private sector and provide a world class service within a regional hub concept for the transport of passengers and cargo.
Comparative advantage of the airport network in Paraguay:• Annual operating level of 98% due to optimal weather conditions • Flat topography, no more than 100 meters above sea level• Equidistance to the biggest cities in South America
Estimated investment: US$130 million in five years
Commuter Railroads of AsuncionThe objective of this project is to build 44 kilometers of double track lines, with electrical system with third rail, and five terminals. The expected demand is over 50,000 passengers per day.
Estimated investment: US$250 million
Water and Sanitation Projects The objective is to reach 100% coverage of water supply and sanitation services throughout the country.
Estimated investment: US$2.7 billion
パラグアイ政府が優先するインフラプロジェクトの例
アスンシオン-シウダー・デル・エステ-エンカルナシオンの3都市を結ぶ“黄金のトライアングル”におけるインフラ改善本計画は、公民協力とコンセッション方式による現在の道路インフラ、総延長800㎞の整備改善も含む。
予想投資額 10億米ドル
パラナ―パラグアイ河川ルート総延長距離約1,000㎞、工事は開口とメンテナンス用浚渫、信号システムの整備、航行支援システムの改善である。
予想投資額:4億米ドル
国際空港の近代化本計画の目的は民間への主要空港業務の権利譲渡(コンセッション)を通じて、空輸システムを近代化し、乗客、及び、貨物輸送の為の地域内ハブ空港としてのコンセプトに順じた世界レベルのサービスを提供することにある。パラグアイの空港網が有する比較優位性:・最上の気候条件に恵まれることから年間98%の運航率を誇る・海抜100m以下の平坦な地形・南米主要都市からの均一距離
予想投資額:当初5年間で1億3,000万米ドル
アスンシオン市近郊電車本プロジェクトの目的は複軌全長44キロ(第3軌道は電気施設用、5か所のターミナル駅舎含む)の近郊電車の運行である。予測される需要は1日当たり5万人の乗降客である。
予想投資額:2億5,000万米ドル
上下水道マスタープラン目的は上水道供給と下水サービスの国内100%の普及率達成にある。
予想投資額:官民協力による27億米ドル
Private Opportunities in Paraguay
Paraguay’s private sector also o�ers attractive investment opportunities in the following: • Food industry• Textile industry and clothing• Metalwork industry• Wire harnesses and autoparts• Shoes and leather industry• Reforestation• Logistics• Livestock production, slaughter for export• Agricultural transformation (irrigation, quality certification)• Railroad transportation for passengers• Real estate• Agribusiness• Business services• Financial sector
CONCLUSION• Paraguay o�ers the most opportunities and the best investment climate for Japanese companies in South America.
• The Japanese technology, discipline, innovation and leadership, combined with Paraguay’s young and disciplined labor force, energy, natural resources, low tax, expanding markets, and safe macroeconomic environment, o�ers a magnifi-cent opportunity to establish “win-win” alliances.
• All this, in the framework of over 78 years of cooperation and friendship.
パラグアイが民間部門に提供するチャンス
パラグアイの民間部門も又、以下のような魅力ある投資機会を提供している。 • 食料産業• 繊維・アパレル産業• 金属加工業• ワイヤーハーネス及び 自動車部品• 靴・レザー産業• 植林• ロジスティック• 畜産・輸出用家畜 解体業• 農業加工業(灌漑、品質証明) • 鉄道(乗客)運輸業• 不動産• アグリビジネス• ビジネス・サービス.• 金融部門
結論• パラグアイは南米において、日本企業にもっとも多くの チャンスと優れたビジネス環境を提供する国である。
• 日本の技術・規律正しさ・イノベーション・リーダーシップ と、パラグアイによって提供される若く規律正しい労働力 ・エネルギー・自然資源・低率の税金・拡大する市場・健全 なマクロ経済環境の融合は、日本とパラグアイの「ウインー ウイン」同盟関係を築くための素晴らしいチャンスとなる。
• これらすべては、78年にわたる両国の友好・協力関係に よるものである。
パラグアイは安定的な法的枠組みを通じて投資に対し類の無いほどのメリットと高いインセンティブを提供する。
内外投資家に対する税制面を優遇する法律第60号/1990に加え、法律第117号/1991は内外投資家への同一取り扱いを定めており、更に2013年、パラグアイ政府は官民協力法として知られる法律第5102号“公共インフラに対する投資、及び、国有の財とサービスの拡大と改善の促進に関する法律”を承認した。
その結果、2015年以降、年間総額15億米ドルを超える予定額の大規模公共工事に対して17件以上の施行者選定の為の国際公開入札が召集されることになっている。計画中のすべての公共工事は、20年以上の長期的計画であり、以下の目的を持つ:
・運輸・流通(ロジスティック)用のインフラとサービスの 組織的発展
・効率的で複合的な方法による統合の促進
・我が国の流通(ロジスティック)回廊の多様化
・官民の連帯と権利移譲(コンセッション)を通じて将来の インフラ投資計画を促進
・国際回廊の整備
・両大洋回廊の導入
※過去12年間における公共工事への平均年次投資額は1億8,000万米ドル程度にとどまっていたにも関わらず、今後5年間はインフラ工事に75億米ドルが投資される予定である。この事実がパラグアイの発展における新しい転機となる事に疑いの余地は無い。
Paraguay o�ers unique advantages and strong incentives for foreign investments through an established legal framework.
Besides Law 60/1990 which o�ers fiscal incentives to national and international investment, and Law 117/1991 which establishes equal treatment to domestic and foreign investments, in 2013 the Government of Paraguay also approved Law 5102 on Investment Promotion in Public Infrastructure, Expansion and Improvement of Goods and Services provided by the Government, also known as Public-Private Partnership Law.
In 2015, more than 17 contracts of major public works with an annual estimated value of over US$1.5 billion are planned to go under public international tender. All of the projected works have an approximate 20-year time horizon and are aimed at:
・Organizing the development of infrastructure, transportation and logistics services of Paraguay
・Promote an e�ective multimodal integration
・Diversify the country’s logistics corridor
・Develop programs for future infrastructure investments through public-private partnerships
・Establish international corridors
・Implement a bioceanic corridor
Over the next five years, the Government of Paraguay is planning to invest around US$75 billion in infrastructure works, which is remarkable considering that the average public work invest-ment during the last 12 years was below US$180 million per year.
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Examples of Infrastructure Projects Prioritized by the Paraguayan Government:
The “Golden Triangle” Asuncion-Ciudad del Este-EncarnacionThis program includes more than 800 kilometers of improvements of the current road infrastructure through Public-Private Partnerships or concessions.
Estimated investment: US$1 billion
Parana-Paraguay Waterway With an approximate extension of 1,000 kilometers, the works to be undertaken include maintenance dredging, signage improvement, and strengthening the support system for navigation.
Estimated investment: US$400 million
International Airports Upgrading ProgramsThis program aims to modernize the air transportation system by granting the operation of major airports to the private sector and provide a world class service within a regional hub concept for the transport of passengers and cargo.
Comparative advantage of the airport network in Paraguay:• Annual operating level of 98% due to optimal weather conditions • Flat topography, no more than 100 meters above sea level• Equidistance to the biggest cities in South America
Estimated investment: US$130 million in five years
Commuter Railroads of AsuncionThe objective of this project is to build 44 kilometers of double track lines, with electrical system with third rail, and five terminals. The expected demand is over 50,000 passengers per day.
Estimated investment: US$250 million
Water and Sanitation Projects The objective is to reach 100% coverage of water supply and sanitation services throughout the country.
Estimated investment: US$2.7 billion
パラグアイ政府が優先するインフラプロジェクトの例
アスンシオン-シウダー・デル・エステ-エンカルナシオンの3都市を結ぶ“黄金のトライアングル”におけるインフラ改善本計画は、公民協力とコンセッション方式による現在の道路インフラ、総延長800㎞の整備改善も含む。
予想投資額 10億米ドル
パラナ―パラグアイ河川ルート総延長距離約1,000㎞、工事は開口とメンテナンス用浚渫、信号システムの整備、航行支援システムの改善である。
予想投資額:4億米ドル
国際空港の近代化本計画の目的は民間への主要空港業務の権利譲渡(コンセッション)を通じて、空輸システムを近代化し、乗客、及び、貨物輸送の為の地域内ハブ空港としてのコンセプトに順じた世界レベルのサービスを提供することにある。パラグアイの空港網が有する比較優位性:・最上の気候条件に恵まれることから年間98%の運航率を誇る・海抜100m以下の平坦な地形・南米主要都市からの均一距離
予想投資額:当初5年間で1億3,000万米ドル
アスンシオン市近郊電車本プロジェクトの目的は複軌全長44キロ(第3軌道は電気施設用、5か所のターミナル駅舎含む)の近郊電車の運行である。予測される需要は1日当たり5万人の乗降客である。
予想投資額:2億5,000万米ドル
上下水道マスタープラン目的は上水道供給と下水サービスの国内100%の普及率達成にある。
予想投資額:官民協力による27億米ドル
Private Opportunities in Paraguay
Paraguay’s private sector also o�ers attractive investment opportunities in the following: • Food industry• Textile industry and clothing• Metalwork industry• Wire harnesses and autoparts• Shoes and leather industry• Reforestation• Logistics• Livestock production, slaughter for export• Agricultural transformation (irrigation, quality certification)• Railroad transportation for passengers• Real estate• Agribusiness• Business services• Financial sector
CONCLUSION• Paraguay o�ers the most opportunities and the best investment climate for Japanese companies in South America.
• The Japanese technology, discipline, innovation and leadership, combined with Paraguay’s young and disciplined labor force, energy, natural resources, low tax, expanding markets, and safe macroeconomic environment, o�ers a magnifi-cent opportunity to establish “win-win” alliances.
• All this, in the framework of over 78 years of cooperation and friendship.
パラグアイが民間部門に提供するチャンス
パラグアイの民間部門も又、以下のような魅力ある投資機会を提供している。 • 食料産業• 繊維・アパレル産業• 金属加工業• ワイヤーハーネス及び 自動車部品• 靴・レザー産業• 植林• ロジスティック• 畜産・輸出用家畜 解体業• 農業加工業(灌漑、品質証明) • 鉄道(乗客)運輸業• 不動産• アグリビジネス• ビジネス・サービス.• 金融部門
結論• パラグアイは南米において、日本企業にもっとも多くの チャンスと優れたビジネス環境を提供する国である。
• 日本の技術・規律正しさ・イノベーション・リーダーシップ と、パラグアイによって提供される若く規律正しい労働力 ・エネルギー・自然資源・低率の税金・拡大する市場・健全 なマクロ経済環境の融合は、日本とパラグアイの「ウインー ウイン」同盟関係を築くための素晴らしいチャンスとなる。
• これらすべては、78年にわたる両国の友好・協力関係に よるものである。
CONTACT US FOR MORE INFORMATION AND ASSISTANCE
Embassy of Paraguay in [email protected] +81 3 3265 5271
詳しい情報、及び、ご質問のある方は在日パラグアイ大使館とコンタクトをお取りください。
在日パラグアイ共和国大使館[email protected]+81 3 3265 5271
We invite you to visit and invest in “Paraguay, a land of opportunities”「パラグアイ チャンスに満ちた国」への訪問と投資の誘致
Sources 情報源 : Investment and Exports Network (REDIEX): 投資輸出促進局(REDIEX)www.rediex.gov.py
Ministry of Industry and Commerce:商工省 www.mic.gov.py
Central Bank of Paraguay:パラグアイ中央銀行 www.bcp.gov.py
Ministry of Finance:大蔵省 www.hacienda.gov.py
Ministry of Public Works and Communications:公共事業通信省 www.mopc.gov.py
General Directorate of Statistics, Surveys and Censuses:統計国勢調査局www.dgeec.gov.py
National Council of Maquila Industries Exports (CNIME):国家マキラドーラ産業審議会の執行事務局 www.maquila.gov.py
Embassy of Paraguay in [email protected] +81 3 3265 5271
在日パラグアイ共和国大使館[email protected]+81 3 3265 5271