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<span class="easy-breadcrumb_segment-separator"> » </span> <span itemprop="itemListElement" itemscope itemtype="http://schema.org/ListItem"> <span itemscope itemprop="item" itemtype="http://schema.org/Thing" itemid="#2"> <span class="easy-breadcrumb_segment easy-breadcrumb_segment-title" itemprop="name">Paraguay </span> </span> <meta itemprop="position" content="2" /> </span> </div> </div> </div> </div> </div> </header> </div> <div id="page"> <div id="main"> <div id="left-content"> <div id="content" class="column" role="main"> <a id="main-content"></a> <article class="node-771178 node node-wikifleet view-mode-full view-mode-full clearfix" about="/en/wikifleet/paraguay" typeof="sioc:Item foaf:Document" data-uid="11812" data-contentGroup1="auteur-Daniel-Bland"> <header> <span property="dc:title" content="Paraguay " class="rdf-meta element-hidden"></span> </header> <header class="group-wiki-header field-group-html5"><div class="field field-name-field-image field-type-image field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><img typeof="foaf:Image" src="https://www.globalfleet.com/sites/default/files/styles/uc_thumbnail/public/paragua_flag_-_small.jpg?itok=Dntiu4Y1" width="35" height="19" alt="" /></div> </div><div class="field field-name-title-field field-type-text field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><h1>Paraguay </h1> </div> </div><em class="last-update">Last modification: 15 Aug 22</em><div class="wikifleet-navigation"><select class="chapter-selector" name="chapters"><option value="_none">Chapters</option><option value="#group-chapter-one">Chapter 1: Economic and business environment</option><option value="#group-chapter-two">Chapter 2 : Automotive market, segments & sales</option><option value="#group-chapter-three">Chapter 3: Company car market</option><option value="#group-chapter-four">Chapter 4: Taxation & legislation</option><option value="#group-chapter-five">Chapter 5: Car policies</option><option value="#group-chapter-six">Chapter 6: Funding methods</option><option value="#group-chapter-seven">Chapter 7: Fuel</option><option value="#group-chapter-height">Chapter 8 : TCO components</option><option value="#group-chapter-nine">Chapter 9: Safety, insurance and telematics</option><option value="#group-chapter-ten">Chapter 10: Environment</option><option value="#group-chapter-eleven">Chapter 11: Mobility</option><option value="#group-chapter-twelve">Chapter 12: Key trends to watch</option></select></div></header><div class="field field-name-body field-type-text-with-summary field-label-above "> <div class="field-label">Introduction: </div> <div class="field-item even field-item-first field-item-last field-item-0" property="content:encoded"> <p><span style="text-align: left;float: none;">Paraguay has held relatively free and regular presidential elections since the country's return to democracy in 1989.</span><br /> <span style="text-align: left;float: none;">Its government recognizes the need to diversify its economy and has taken steps in recent years to do so. In addition to looking for new commodity markets in the Middle East and Europe, Paraguayan officials have promoted the country’s low labor costs, cheap energy from its massive Itaipu Hydroelectric Dam, and single-digit tax rate on foreign firms. As a result, the number of factories operating in the country – mostly transplants from Brazil - has tripled since 2014.</span></p> <p><span style="text-align: left;float: none;">Made up of 17 departments, most of the population resides in the eastern half of the country; to the west lies the Gran Chaco (a semi-arid lowland plain), which accounts for 60% of the land territory, but only 2% of the overall population </span></p> </div> </div> <div class="group-chapter-one-items field-group-accordion field-group-accordion-wrapper effect-none" id="group-chapter-one"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 1: Economic and business environment</a></h3> <div class="field-group-format-wrapper "><div class="field-group-table group_chapter_one_table form-wrapper form-group" id=""><div id="" class="field-group-table group_chapter_one_table "> <table class="field-group-format group_chapter_one_table table table-striped"> <tbody> <tr class=""><th class="field-label">Demographics</th><td class="field-content"><div class="field field-name-field-demographics field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span class="subfield-number" style="text-align: left;">population of 7.22 million (2021)<br /> up 1.22% year-over-year<br /> <br /> source: Statistics Times</span></p> </div> </div></td> </tr> <tr class=""><th class="field-label">Capital</th><td class="field-content"><div class="field field-name-field-capital field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span style="text-align: left;float: none;">Asunción (population 525,294)<br /> 2.2 million metropolitan region</span></p> </div> </div></td> </tr> <tr class=""><th class="field-label">Major cities</th><td class="field-content"><div class="field field-name-field-major-cities field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><table style="text-align: left;"> <tbody> <tr> <td style="text-align: left;">1</td> <td style="text-align: left;">Asunción</td> <td style="text-align: left;">525,294 (<em>2.2 million metro residents</em>)</td> </tr> <tr> <td style="text-align: left;">2</td> <td style="text-align: left;">Ciudad del Este</td> <td style="text-align: left;">293,817</td> </tr> <tr> <td style="text-align: left;">3</td> <td style="text-align: left;">Luque</td> <td style="text-align: left;">263,604</td> </tr> <tr> <td style="text-align: left;">4</td> <td style="text-align: left;">San Lorenzo</td> <td style="text-align: left;">252,561</td> </tr> <tr> <td style="text-align: left;">5</td> <td style="text-align: left;">Capiatá</td> <td style="text-align: left;">224,152</td> </tr> </tbody> </table> </div> </div></td> </tr> <tr class=""><th class="field-label">Languages</th><td class="field-content"><div class="field field-name-field-languages field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span style="text-align: left;float: none;">Spanish (official)<br /> Guarani (official)</span></p> </div> </div></td> </tr> <tr class=""><th class="field-label">GDP</th><td class="field-content"><div class="field field-name-field-gdp field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>US$39 billion (2020)<br /> up 10.2% year-over-year</p> <p>US$5,402 per capita (non adjusted)</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Unemployment rate</th><td class="field-content"><div class="field field-name-field-unemployment-rate field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>6.8% (Janyary 2022) </p> </div> </div></td> </tr> <tr class=""><th class="field-label">Main industries</th><td class="field-content"><div class="field field-name-field-main-industries field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span style="text-align: left;float: none;">sugar processing, cement, textiles, beverages, wood products, steel, base metals, electric power </span></p> </div> </div></td> </tr> <tr class=""><th class="field-label">Currency</th><td class="field-content"><div class="field field-name-field-currency field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span style="text-align: left;float: none;">Paraguayan guaraní</span></p> </div> </div></td> </tr> <tr class=""><th class="field-label">Interest rate</th><td class="field-content"><div class="field field-name-field-interest-rate field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>8% (July 2022)</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Political key info</th><td class="field-content"><div class="field field-name-field-political-key-info field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span style="text-align: left;float: none;">President Mario Abdo Benitez and Vice President Hugo Adalberto Velazquez Moreno have held their positions since 15 August 2018. Both are directly elected on the same ballot by simple majority popular vote for a single 5-year term. Election last held on 22 April 2018 and the next will be held in April 2023. </span></p> </div> </div></td> </tr> <tr class=""><th class="field-label">Inflation</th><td class="field-content"><div class="field field-name-field-inflation field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>11.1% (July 2022)</p> </div> </div></td> </tr> </tbody> </table> </div></div></div></div><div class="group-chapter-two-items field-group-accordion-wrapper effect-none" id="group-chapter-two"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 2 : Automotive market, segments & sales</a></h3> <div class="field-group-format-wrapper "><div class="field-group-table group_chapter_two_table group-chapter-two-table field-group-table form-wrapper form-group" id=""><div id="" class="field-group-table group_chapter_two_table group-chapter-two-table field-group-table"> <table class="field-group-format group_chapter_two_table table table-striped"> <tbody> <tr class=""><th class="field-label">Total Car park</th><td class="field-content"><div class="field field-name-field-total-car-park field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span style="text-align: left;float: none;">2019<br /> <br /> Total car park 652,886 (just under 1in 10 people)</span><sup class="reference" id="cite_ref-https_31-2" style="text-align: left;"><a href="https://en.wikipedia.org/wiki/List_of_countries_by_vehicles_per_capita#cite_note-https-31">[</a></sup><br /> <br />  </p> </div> </div></td> </tr> <tr class=""><th class="field-label">New vehicle registrations (Cars, LCV, Trucks)</th><td class="field-content"><div class="field field-name-field-new-vehicle-registrations field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span><span><span><span>1Q21: down 12.7% year-over-year to 5,854 units<br /> source: Focus2Move</span></span></span></span><br /> <br /> 2020, 23,273 units<br /> <span style="text-align: left;float: none;">2019, 27,874 units</span><br style="text-align: left;" /> <span style="text-align: left;float: none;">2018: 32,795 units<br /> 2</span><span style="text-align: left;float: none;">017: 27,851 units</span><br style="text-align: left;" /> <span style="text-align: left;float: none;">source: OICA</span></p> </div> </div></td> </tr> <tr class=""><th class="field-label">Top 5 brands (total market)</th><td class="field-content"><div class="field field-name-field-top-5-brands-total-market field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>1. Kia, down 0.1% (20% market share)<br /> 2. Chevrolet, down 17.3%<br /> 3. Hyundai, up 2.1%<br /> 4. Volkswagen, down 2.8%<br /> 5. Toyota, down 19.6%</p> <p>source: Focus2Move</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Model preference top 5 (total market)</th><td class="field-content"><div class="field field-name-field-model-preference-top field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>The best-selling model in 2020 was the Chevrolet Onix with 2,713 units sold, up 9.2% year-over-year. (11.7% market share) source:Focus2Move</p> <p>Other popular models are Toyota Hilux, Volkswagen Gol, Chevrolet S10, and Kia Rio.</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Used car market/renewal cycle</th><td class="field-content"><div class="field field-name-field-used-car-market field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><ul> <li style="margin: 0px 0px 10.66px;">Paraguay is a used car market haven</li> <li style="margin: 0px 0px 10.66px;">Approximately  60% of all car sales in the country - some 48,000 vehicles per year - are used car imports, <br /> according to the government of Paraguay.  </li> <li style="margin: 0px 0px 10.66px;">Most of the vehicles are coming from South Korea, USA, Japan, China, and Brazil.</li> <li style="margin: 0px 0px 10.66px;"><span style="text-align: left;">Paraguay is the only country in Latin America which allows car imports of more than 10 years old </span></li> </ul> <p style="margin:0px 0px 10.66px;"><span style="text-align: left;">The used car market, supported by local auto parts providers known as "maquiladoras", i</span><span style="text-align: left;float: none;">s a very big business in Paraguay. However, the Paraguay government is b</span><span style="text-align: left;">eing pressured by neighboring countries such as Brazil and Argentina to prohibit their used car import activities as they are unable to sell new cars in Paraguay.   </span></p> <p style="margin:0px 0px 10.66px;"><span style="text-align: left;">For instance, as Brazil is a large buyer of auto parts from Paraguay, the Brazilian government is threatening import tax on these auto parts unless Paraguay stop importing used cars.<br /> <br /> One legislation being considered by the Paraguay government - as of 1H19 -  is a 10% tax on used cars being imported into the country. </span></p> </div> </div></td> </tr> </tbody> </table> </div></div></div></div><div class="group-chapter-three-items field-group-accordion-wrapper effect-none" id="group-chapter-three"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 3: Company car market</a></h3> <div class="field-group-format-wrapper "><div class="field-group-table group_chapter_three_table group-chapter-three-table field-group-table form-wrapper form-group" id=""><div id="" class="field-group-table group_chapter_three_table group-chapter-three-table field-group-table"> <table class="field-group-format group_chapter_three_table table table-striped"> <tbody> <tr class=""><th class="field-label">Evolution fleet sales (last 5 years)</th><td class="field-content"><div class="field field-name-field-evolution-fleet-sales field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span style="text-align: left;float: none;">In 2019, commercial vehicles sales dropped 4% to 7,275 units from 7,591 (source: OICA)</span><br style="text-align: left;" /> <span style="text-align: left;float: none;">2018: 7,591 units<br /> 2</span><span style="text-align: left;float: none;">017: 9,003 units</span><br style="text-align: left;" /> <span style="text-align: left;float: none;">2016: 6,700 units</span><br style="text-align: left;" /> <span style="text-align: left;float: none;">2015: 9,500 units</span></p> </div> </div></td> </tr> </tbody> </table> </div></div></div></div><div class="group-chapter-four-items field-group-accordion-wrapper effect-none" id="group-chapter-four"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 4: Taxation & legislation</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-taxation-legislation field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><table style="margin:0px;" width="896"> <tbody> <tr> <td colspan="2" width="896"> <div class="OutlineElement Ltr BCX1 SCXW155038621" style="text-align: left;"> <p class="Paragraph SCXW155038621 BCX1" style="text-align: center;"><span class="TextRun SCXW155038621 BCX1"><span class="NormalTextRun SCXW155038621 BCX1">Paraguay</span></span><span class="EOP SCXW155038621 BCX1"> </span></p> </div> </td> </tr> <tr> <td colspan="2" width="896"> <div class="OutlineElement Ltr BCX1 SCXW9860363" style="text-align: left;"> <p class="Paragraph SCXW9860363 BCX1" style="text-align: left;"><i><span class="TextRun SCXW9860363 BCX1"><span class="NormalTextRun SCXW9860363 BCX1">The basis of company car taxation in </span></span><span class="TextRun SCXW9860363 BCX1"><span class="SpellingError SCXW9860363 BCX1">Paraguay </span></span><span class="TextRun SCXW9860363 BCX1"><span class="SpellingError SCXW9860363 BCX1">is</span><span class="NormalTextRun SCXW9860363 BCX1"> reflected in th</span></span><span class="TextRun SCXW9860363 BCX1"><span class="NormalTextRun SCXW9860363 BCX1">is</span></span><span class="TextRun SCXW9860363 BCX1"><span class="NormalTextRun SCXW9860363 BCX1"> overview. </span></span><span class="TextRun SCXW9860363 BCX1"><span class="NormalTextRun SCXW9860363 BCX1">Different types of taxes are considered here: </span></span><span class="TextRun SCXW9860363 BCX1"><span class="NormalTextRun SCXW9860363 BCX1">taxes related to the registration of the vehicle, income taxes and VAT aspects. Expected future developments are </span></span><span class="TextRun SCXW9860363 BCX1"><span class="NormalTextRun SCXW9860363 BCX1">also </span></span><span class="TextRun SCXW9860363 BCX1"><span class="NormalTextRun SCXW9860363 BCX1">briefly listed</span></span><span class="TextRun SCXW9860363 BCX1"><span class="NormalTextRun SCXW9860363 BCX1">, if any</span></span><span class="TextRun SCXW9860363 BCX1"><span class="NormalTextRun SCXW9860363 BCX1">.</span></span></i><span class="EOP SCXW9860363 BCX1"> </span></p> </div> </td> </tr> <tr> <td colspan="2" width="896"> <ol> <li style="margin:0px;"><b><span style="margin:0px;">Car taxation<br /> 1.1 Registraion tax</span></b></li> </ol> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span style="margin:0px;">Taxable event</span></li> </ul> </td> <td width="529"> <div class="OutlineElement Ltr BCX1 SCXW26373780" style="text-align: left;"> <p class="Paragraph SCXW26373780 BCX1" style="text-align: left;"><i><span class="TextRun SCXW26373780 BCX1"><span class="NormalTextRun SCXW26373780 BCX1">The import of vehicles and production carried out by assembling companies installed in Paraguay, the transfer onerous or free of charge.</span></span><span class="TextRun SCXW26373780 BCX1"><span class="NormalTextRun SCXW26373780 BCX1"> </span></span></i><span class="EOP SCXW26373780 BCX1"> </span></p> </div> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span style="margin:0px;">Taxable person</span></li> </ul> </td> <td width="529"> <div class="OutlineElement Ltr BCX1 SCXW136937027" style="text-align: left;"> <p class="Paragraph SCXW136937027 BCX1" style="text-align: left;"><i><span class="TextRun SCXW136937027 BCX1"><span class="NormalTextRun SCXW136937027 BCX1">Individuals and legal entities</span></span><span class="TextRun SCXW136937027 BCX1"><span class="NormalTextRun SCXW136937027 BCX1">.</span></span></i><span class="EOP SCXW136937027 BCX1"> </span></p> </div> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span style="margin:0px;">Tax due</span></li> </ul> </td> <td width="529"> <div class="OutlineElement Ltr BCX1 SCXW59128437" style="text-align: left;"> <p class="Paragraph SCXW59128437 BCX1" style="text-align: left;"><span class="TextRun SCXW59128437 BCX1"><span class="NormalTextRun SCXW59128437 BCX1">Flex vehicles are exempt from the customs tariff payment at the moment of importation, as a promotion for the consumption of absolute alcohol and alcohol fuel.</span></span><span class="EOP SCXW59128437 BCX1"> </span><br />  </p> </div> <div class="OutlineElement Ltr BCX1 SCXW59128437" style="text-align: left;"> <p class="Paragraph SCXW59128437 BCX1" style="text-align: left;"><span class="TextRun SCXW59128437 BCX1"><span class="NormalTextRun SCXW59128437 BCX1">Likewise, as an incentive for the importation of flex vehicles, it is established that the State Bodies and Entities must acquire a minimum of 30% of these vehicles. The volume of purchase should increase gradually until achieving the total change of the fleet of vehicles propelled by biofuels.</span></span><span class="EOP SCXW59128437 BCX1"> </span></p> </div> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span style="margin:0px;">Taxable period</span></li> </ul> </td> <td width="529"> <div class="OutlineElement Ltr BCX1 SCXW205001031" style="text-align: left;"> <p class="Paragraph SCXW205001031 BCX1" style="text-align: left;"><i><span class="TextRun SCXW205001031 BCX1"><span class="NormalTextRun SCXW205001031 BCX1">In the import</span></span><span class="TextRun SCXW205001031 BCX1"><span class="NormalTextRun SCXW205001031 BCX1">,</span></span><span class="TextRun SCXW205001031 BCX1"><span class="NormalTextRun SCXW205001031 BCX1"> and sale of vehicles made by the assembly companies.</span></span></i></p> </div> </td> </tr> <tr> <td colspan="2" width="896"> <ol> <li style="margin:0px;"> <div class="SCXW181198980 BCX1" style="text-align: left;"> <div class="ListContainerWrapper SCXW181198980 BCX1"> <ul class="BulletListStyle1 SCXW181198980 BCX1"> <li class="OutlineElement Ltr BCX1 SCXW181198980"> <p class="Paragraph SCXW181198980 BCX1" style="text-align: left;">1.2 Annual circulation tax</p> </li> <li class="OutlineElement Ltr BCX1 SCXW181198980"> <div class="OutlineElement Ltr BCX1 SCXW91196747" style="text-align: left;"> <p class="Paragraph SCXW91196747 BCX1" style="text-align: left;"><br /> <span class="TextRun SCXW91196747 BCX1"><span class="NormalTextRun SCXW91196747 BCX1">Taxable event</span></span><span class="EOP SCXW91196747 BCX1"> </span></p> <div class="OutlineElement Ltr BCX1 SCXW240330964" style="text-align: left;"> <p class="Paragraph SCXW240330964 BCX1" style="text-align: left;"><span class="TextRun SCXW240330964 BCX1"><span class="NormalTextRun SCXW240330964 BCX1">It is paid in each municipality in which the owner of the vehicle has obtained his driving record and corresponding rating.</span></span><span class="EOP SCXW240330964 BCX1"> </span></p> </div> </div> <div class="OutlineElement Ltr BCX1 SCXW91196747" style="text-align: left;"> <p class="Paragraph SCXW91196747 BCX1" style="text-align: left;"><span class="EOP SCXW91196747 BCX1"> </span></p> </div> <div class="OutlineElement Ltr BCX1 SCXW91196747" style="text-align: left;"> <p class="Paragraph SCXW91196747 BCX1" style="text-align: left;"><span class="TextRun SCXW91196747 BCX1"><span class="NormalTextRun SCXW91196747 BCX1">Taxable person</span></span><span class="EOP SCXW91196747 BCX1"> </span><span class="EOP SCXW118413941 BCX1"> </span></p> <div class="OutlineElement Ltr BCX1 SCXW118413941" style="text-align: left;"> <p class="Paragraph SCXW118413941 BCX1" style="text-align: left;"><i><span class="TextRun SCXW118413941 BCX1"><span class="NormalTextRun SCXW118413941 BCX1">Individuals and legal entities that have registered the vehicle in the corresponding municipality where they have established their </span></span><span class="TextRun SCXW118413941 BCX1"><span class="NormalTextRun SCXW118413941 BCX1">residency</span></span><span class="TextRun SCXW118413941 BCX1"><span class="NormalTextRun SCXW118413941 BCX1">.</span></span></i><span class="EOP SCXW118413941 BCX1"> </span><span class="EOP SCXW91196747 BCX1"> </span></p> </div> </div> <div class="OutlineElement Ltr BCX1 SCXW91196747" style="text-align: left;"> <p class="Paragraph SCXW91196747 BCX1" style="text-align: left;"><span class="EOP SCXW91196747 BCX1"> </span></p> </div> <div class="OutlineElement Ltr BCX1 SCXW91196747" style="text-align: left;"> <p class="Paragraph SCXW91196747 BCX1" style="text-align: left;"><span class="TextRun SCXW91196747 BCX1"><span class="NormalTextRun SCXW91196747 BCX1">Tax due</span></span><span class="EOP SCXW91196747 BCX1"> </span></p> <div class="OutlineElement Ltr BCX1 SCXW113154462" style="text-align: left;"> <p class="Paragraph SCXW113154462 BCX1" style="text-align: left;"><span class="TextRun SCXW113154462 BCX1"><span class="NormalTextRun SCXW113154462 BCX1">The tax is settled according to the characteristics of the car, year, model, brand, value of the vehicle.</span></span><span class="EOP SCXW113154462 BCX1"> </span></p> </div> </div> <div class="OutlineElement Ltr BCX1 SCXW91196747" style="text-align: left;"> <p class="Paragraph SCXW91196747 BCX1" style="text-align: left;"><span class="EOP SCXW91196747 BCX1"> </span></p> </div> <div class="OutlineElement Ltr BCX1 SCXW91196747" style="text-align: left;"> <p class="Paragraph SCXW91196747 BCX1" style="text-align: left;"><span class="TextRun SCXW91196747 BCX1"><span class="NormalTextRun SCXW91196747 BCX1">Taxable period</span></span><span class="EOP SCXW220395566 BCX1"> </span></p> <div class="OutlineElement Ltr BCX1 SCXW220395566" style="text-align: left;"> <p class="Paragraph SCXW220395566 BCX1" style="text-align: left;"><span class="TextRun SCXW220395566 BCX1"><span class="NormalTextRun SCXW220395566 BCX1">The tax is paid annually.</span></span><span class="EOP SCXW220395566 BCX1"> </span></p> </div> <p class="Paragraph SCXW91196747 BCX1" style="text-align: left;"> </p> </div> </li> </ul> </div> </div> </li> </ol> </td> </tr> <tr> <td width="366"> <p style="margin:0px;"><span><b>1. Income tax</b></span></p> <div class="SCXW181198980 BCX1" style="text-align: left;"> <div class="ListContainerWrapper SCXW181198980 BCX1"> <ul class="BulletListStyle1 SCXW181198980 BCX1"> <li class="OutlineElement Ltr BCX1 SCXW181198980"> <p class="Paragraph SCXW181198980 BCX1" style="text-align: left;"><span class="TextRun SCXW181198980 BCX1"><span class="NormalTextRun SCXW181198980 BCX1">The income obtained from the alienation of the vehicles within the Paraguayan territory.</span></span><span class="EOP SCXW181198980 BCX1"> </span></p> </li> <li class="OutlineElement Ltr BCX1 SCXW181198980"> <p class="Paragraph SCXW181198980 BCX1" style="text-align: left;"><br /> <i><span class="TextRun SCXW181198980 BCX1"><span class="NormalTextRun SCXW181198980 BCX1">The income tax is settled on the income resulting from the commercialization of the vehicles af</span></span><span class="TextRun SCXW181198980 BCX1"><span class="NormalTextRun SCXW181198980 BCX1">ter deductions accepted by the Tax A</span></span><span class="TextRun SCXW181198980 BCX1"><span class="NormalTextRun SCXW181198980 BCX1">dministration. The general tax rate is 10%.</span></span></i><span class="EOP SCXW181198980 BCX1"> </span></p> </li> <li class="OutlineElement Ltr BCX1 SCXW181198980"> <p class="Paragraph SCXW181198980 BCX1" style="text-align: left;"><br /> <span class="TextRun SCXW181198980 BCX1"><span class="NormalTextRun SCXW181198980 BCX1">The income tax is for annual liquidation.</span></span><span class="EOP SCXW181198980 BCX1"> </span></p> </li> </ul> </div> </div> </td> <td width="529"> </td> </tr> <tr> <td width="366"> </td> <td width="529"> </td> </tr> <tr> <td width="366">VAT</td> <td width="529"> </td> </tr> <tr> <td colspan="2" width="896"> <p style="margin:0px;">3.1 Deduction</p> <p style="margin:0px;"> </p> <div class="SCXW34378999 BCX1" style="text-align: left;"> <div class="ListContainerWrapper SCXW34378999 BCX1"> <ul class="BulletListStyle1 SCXW34378999 BCX1"> <li class="OutlineElement Ltr BCX1 SCXW34378999"> <p class="Paragraph SCXW34378999 BCX1" style="text-align: left;"><span class="TextRun SCXW34378999 BCX1"><span class="NormalTextRun SCXW34378999 BCX1">-The tax credit originated in the importation or local purchase of the vehicle is used to compensate with the fiscal debit originated in the sales.</span></span><span class="EOP SCXW34378999 BCX1"> </span></p> </li> <li class="OutlineElement Ltr BCX1 SCXW34378999"> <p class="Paragraph SCXW34378999 BCX1" style="text-align: left;"><br /> <span class="TextRun SCXW34378999 BCX1"><span class="NormalTextRun SCXW34378999 BCX1">-The settlement of the Value Added Tax is done on a monthly basis. The tax rate is 10% for the alienation of vehicles.</span></span><span class="EOP SCXW34378999 BCX1"> </span></p> </li> </ul> </div> <div class="OutlineElement Ltr BCX1 SCXW34378999"> <p class="Paragraph SCXW34378999 BCX1" style="text-align: left;"><i><span class="TextRun SCXW34378999 BCX1"><span class="NormalTextRun SCXW34378999 BCX1">1) Tax Debit greater than the Tax Credit:</span></span><span class="TextRun SCXW34378999 BCX1"><span class="NormalTextRun SCXW34378999 BCX1"> </span></span><span class="TextRun SCXW34378999 BCX1"><span class="NormalTextRun SCXW34378999 BCX1">Fiscal Debit - Tax Credit = Value Added Tax payable (Tax rate 10%).</span></span></i><span class="EOP SCXW34378999 BCX1"> </span></p> </div> <div class="OutlineElement Ltr BCX1 SCXW34378999"> <p class="Paragraph SCXW34378999 BCX1" style="text-align: left;"><i><span class="TextRun SCXW34378999 BCX1"><span class="NormalTextRun SCXW34378999 BCX1">2</span></span><span class="TextRun SCXW34378999 BCX1"><span class="NormalTextRun SCXW34378999 BCX1">) Fiscal Debit less than the Tax Credit:</span></span><span class="TextRun SCXW34378999 BCX1"><span class="NormalTextRun SCXW34378999 BCX1"> </span></span><span class="TextRun SCXW34378999 BCX1"><span class="NormalTextRun SCXW34378999 BCX1">Fiscal Debit - Tax Credit = Balance in favor of the taxpayer to be used in the following periods.</span></span></i><span class="EOP SCXW34378999 BCX1"> </span></p> </div> </div> </td> </tr> <tr> <td width="366"> <p style="margin:0px;"><br /> 3.2 Hire Purchase</p> <div class="SCXW169784058 BCX1" style="text-align: left;"> <div class="ListContainerWrapper SCXW169784058 BCX1"> <ul class="BulletListStyle1 SCXW169784058 BCX1"> <li class="OutlineElement Ltr BCX1 SCXW169784058"> <p class="Paragraph SCXW169784058 BCX1" style="text-align: left;"><span class="TextRun SCXW169784058 BCX1"><span class="NormalTextRun SCXW169784058 BCX1">In case of financial leasing, the VAT rate is 10%.</span></span><span class="EOP SCXW169784058 BCX1"> </span></p> </li> </ul> </div> </div> </td> </tr> <tr> <td width="366"> <p style="margin:0px;"><br /> 3.3 Leasing</p> <div class="SCXW46904741 BCX1" style="text-align: left;"> <div class="ListContainerWrapper SCXW46904741 BCX1"> <ul class="BulletListStyle1 SCXW46904741 BCX1"> <li class="OutlineElement Ltr BCX1 SCXW46904741"> <p class="Paragraph SCXW46904741 BCX1" style="text-align: left;"><span class="TextRun SCXW46904741 BCX1"><span class="NormalTextRun SCXW46904741 BCX1">The lease of vehicles is taxed at the 10% VAT rate.</span></span><span class="EOP SCXW46904741 BCX1"> </span></p> </li> </ul> </div> </div> </td> <td width="529"> <p style="margin:0px;"><span style="margin:0px;"> </span></p> <p style="margin:0px;"> </p> <p style="margin:0px;"> </p> </td> </tr> <tr> <td width="366"> <p style="margin:0px;"><br /> 4.0 Company Car<br /> <br /> 4.1 <span class="TextRun SCXW220795740 BCX1"><span class="NormalTextRun SCXW220795740 BCX1">VAT due on private use of company cars</span></span><span class="EOP SCXW220795740 BCX1"> </span></p> <div class="SCXW46904741 BCX1" style="text-align: left;margin:0px;"> <div class="ListContainerWrapper SCXW46904741 BCX1"> <ul class="BulletListStyle1 SCXW46904741 BCX1"> <li class="OutlineElement Ltr BCX1 SCXW46904741"> <p class="Paragraph SCXW46904741 BCX1" style="text-align: left;"><span class="TextRun SCXW46904741 BCX1"><span class="NormalTextRun SCXW46904741 BCX1">The lease of vehicles is taxed at the 10% VAT rate.</span></span><span class="EOP SCXW46904741 BCX1"> </span></p> </li> </ul> </div> </div> <p style="margin:0px;"> </p> </td> <td width="529"> <p style="margin:0px;"> </p> </td> </tr> <tr> <td colspan="2" width="896"> <div class="SCXW6822184 BCX1" style="text-align: left;"> <div class="ListContainerWrapper SCXW6822184 BCX1"> <ol class="NumberListStyle1 SCXW6822184 BCX1"> <li class="OutlineElement Ltr BCX1 SCXW6822184"> <p class="Paragraph SCXW6822184 BCX1" style="text-align: left;"><span class="TextRun SCXW6822184 BCX1"><span class="NormalTextRun SCXW6822184 BCX1">4.2 Company car in personal tax returns – benefit in kind</span></span><span class="EOP SCXW6822184 BCX1"> </span><br />  </p> <div class="SCXW219756769 BCX1" style="text-align: left;"> <div class="ListContainerWrapper SCXW219756769 BCX1"> <ul class="BulletListStyle1 SCXW219756769 BCX1"> <li class="OutlineElement Ltr BCX1 SCXW219756769"> <p class="Paragraph SCXW219756769 BCX1" style="text-align: left;"><span class="TextRun SCXW219756769 BCX1"><span class="NormalTextRun SCXW219756769 BCX1">It is not regulated that the company's vehicles are part of the personal tax declaration.</span></span><span class="EOP SCXW219756769 BCX1"> </span></p> </li> </ul> </div> </div> </li> </ol> </div> </div> </td> </tr> <tr> <td width="366"> <p style="margin:0px;"> </p> </td> <td width="529"> <p style="margin:0px;"> </p> <p style="margin:0px;"> </p> </td> </tr> <tr> <td colspan="2" width="896"> <ol> <li style="margin:0px;"> <div class="SCXW115270626 BCX1" style="text-align: left;"> <div class="ListContainerWrapper SCXW115270626 BCX1"> <ol class="NumberListStyle1 SCXW115270626 BCX1"> <li class="OutlineElement Ltr BCX1 SCXW115270626"> <p class="Paragraph SCXW115270626 BCX1" style="text-align: left;"><span class="TextRun SCXW115270626 BCX1"><span class="NormalTextRun SCXW115270626 BCX1">5. Electric vehicles</span></span><br />  </p> <div class="SCXW5194619 BCX1" style="text-align: left;"> <div class="ListContainerWrapper SCXW5194619 BCX1"> <ul class="BulletListStyle1 SCXW5194619 BCX1"> <li class="OutlineElement Ltr BCX1 SCXW5194619"> <p class="Paragraph SCXW5194619 BCX1" style="text-align: left;"><span class="TextRun SCXW5194619 BCX1"><span class="NormalTextRun SCXW5194619 BCX1">The import for the national market of electric vehicles and new hybrid vehicles is exempt from the payment of customs duties and VAT.</span></span><span class="EOP SCXW5194619 BCX1"> </span></p> </li> </ul> </div> </div> </li> </ol> </div> </div> </li> </ol> </td> </tr> <tr> <td width="366"> <p style="margin:0px;"> </p> </td> <td width="529"> </td> </tr> </tbody> </table> <div class="contribute-links"> <div class="links"><a class="wikifleet-easy-edit btn edit-link" href="https://www.globalfleet.com/en?destination=node/769788#group_chapter_four" id="wikifleet-easy-edit-group_chapter_four">Suggest an update</a></div> </div> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/771178" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-five-items field-group-accordion field-group-accordion-wrapper effect-none" id="group-chapter-five"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 5: Car policies</a></h3> <div class="field-group-format-wrapper "><p>This section is empty…for now. Want to help us in filling it? Fill in your text in this section and become a wikifleet contributor!</p><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/771178" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-six-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-six"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 6: Funding methods</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-funding-methods field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p style="margin:0px 0px 13.33px;"><span><span style="margin:0px;"><span>Unlike the past, OEMs are offering accessible financing plans nowadays with the help of national development bank BNF. The bank has a credit line which offers financing for 0km first vehicles (imported or domestic) known as “</span></span><span style="margin:0px;"><span>Vehículo 0 Km para la gente” (0km Vehicle for the people). </span></span></span><span><span style="margin:0px;"><span>It offers loans of up to </span></span></span><span><span style="margin:0px;"><span>100mn guaraníes (approx. US$16,028) with 8.95% annual interest or loans up to 150mn guaraníes at a rate of 9.95%. The loans periods run up to 60 months. </span></span></span><span><span style="margin:0px;"><span style="margin:0px;"><span> </span></span></span></span></p> <p style="margin:0px 0px 13.33px;"><span><span style="margin:0px;"><span style="margin:0px;"><span>It offers loans of up </span></span><span style="margin:0px;"><span>100mn guaraníes with 8.95% annual interest or loans up to 150mn guaraníes at a rate of 9.95%. The loans periods run up to 60 months.</span></span></span></span></p> <p style="margin:0px 0px 13.33px;"> </p> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/771178" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-seven-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-seven"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 7: Fuel</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-fuel field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>August 8, 2022<br /> Average gasoline price per liter: US$1.41 (world average is US$1.39)<br /> Average diesel price per liter: US$1.21 (world average is US$1.36)</p> <p>December, 2021<br /> Average electricity price per kWh Households: US$0.06 (world average is US$0.14)<br /> Average electricity price per kWh Business: US$0.05 (world average is US$0.13)</p> <p style="text-align: left;">Source: https://www.globalpetrolprices.com/gasoline_prices/</p> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/771178" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-height-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-height"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 8 : TCO components</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-tco-components field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>Some of the reginal characterestics which could curb TCO are the low cost of automobile maintenance, the strong autoparts industry, and the fact that there is no <span style="text-align: left;">mandatory insurance related to bodily harm in the case of an accident. Running without insurance, however, may not be a good idea as this could cost you much more if a serious accident occurs.   </span><br />  </p> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/771178" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-nine-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-nine"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 9: Safety, insurance and telematics</a></h3> <div class="field-group-format-wrapper group-chapter-nine field-group-accordion-item"><div class="field field-name-field-safety-insurance-and-telem field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p style="margin: 0px 0px 17px;"><span style="margin: 0px;">Insurance<br /> <br /> Unlike many countries in Latin America, Paraguay does not require any type of mandatory insurance related to bodily harm in the case of an accident. </span></p> <p style="margin: 0px 0px 17px;"><span style="margin: 0px;">Currently, only about 30% of drivers have insurance which covers medical expenses as a result of an accident, according to the traffic and road safety agency of Paraguay. </span></p> <p style="margin: 0px 0px 17px;"><span style="margin: 0px;">Owing to this, the agency - in 1Q19 - was putting together a bill which establishes manadatory traffic accident insurance, SOAT, and it is expected to be debated in congress in 2019.<br /> <br /> As for telematics, some of the largest companies are operating within the country but more for industrial firms and governments. </span></p> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/771178" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-ten-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-ten"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 10: Environment</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-environment field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p style="margin:0px 0px 13.33px;"><span><span style="margin:0px;"><span>In the capital city of Asunción, despite the introduction of low sulfur fuels, vehicle emissions are still quite high as many of the cars in the city are old and poorly maintained.</span></span></span></p> <p style="margin:0px 0px 13.33px;"><span><span style="margin:0px;"><span>There is a high concentration of Particulate Matter (PM) 2.5 in the city, with registered values being well above the limits set by the World Health Organization (WHO). </span></span></span></p> <p style="margin:0px 0px 13.33px;"><span><span style="margin:0px;"><span>In 2012, a tax incentive law for the importation of electric cars was approved in Congress. However, two years later, the regulation underwent modifications that practically rendered the benefits ineffective, according to representatives of the industry.</span></span></span></p> <p style="margin:0px 0px 13.33px;"><span><span style="margin:0px;"><span>At the beginning of 2019, there were approximately 250 electric and hybrid vehicles circulating in the county. Most of them are imported from Miami.</span></span></span></p> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/771178" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-eleven-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-eleven"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 11: Mobility</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-mobility field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p style="margin:0px 0px 13.33px;"><span><span style="margin:0px;"><span>In April, 2019, the Ministry of Public Works and Communications (MOPC) was analyzing regulatory changes to the Metrobús project in Asunción which is aimed at permitting the use of electric buses. </span></span></span></p> <p style="margin:0px 0px 13.33px;"><span><span style="margin:0px;"><span>According to latest studies, the current passenger demand is some 12,000/hour. </span></span></span></p> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/771178" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-twelve-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-twelve"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 12: Key trends to watch</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-key-trends-to-watch field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p style="margin:0px 0px 13.33px;"><span style="margin:0px;"><span><span>Of the 95,856 cars imported in 2018, 65.6% of them were used cars, with the vast majority being more than 10 years old. </span></span></span></p> <p style="margin:0px 0px 13.33px;"><span style="margin:0px;"><span><span>Despite this, the new car market has been booming, growing by some 30% per month in 2018. And the trend is expected to continue thanks to the “</span></span></span><span style="margin:0px;"><span><span>Vehículo 0km para la gente” (0km Vehicle for the people) program being offered by </span></span></span><span style="margin:0px;"><span><span>national development bank BNF.</span></span></span></p> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/771178" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><span property="dc:title" content="Paraguay " class="rdf-meta element-hidden"></span> </article> </div> </div> <aside class="sidebars"> <div class="region region-sidebar-first"> <div id="block-bean-wiki-paraguay-square1" class="block block-bean"> <div class="entity entity-bean bean-dfp-block clearfix" about="/en/block/wiki-paraguay-square1" typeof=""> <div class="content"> <div 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