Paraguay Updates Maquila Regime with New Law, Introducing Service Maquilas and Tax Benefits

• Paraguay updated the maquila regime with Law No. 7547/25, effective from 8 September 2025, with a 12-month transition for existing programs.
• The law introduces guidelines for maquila companies involved in contracts with foreign entities, focusing on industrial or service processes using domestic resources.
• Service maquilas are recognized, benefiting foreign companies using remote processes like information and communication technologies.
• Benefits under the new regime last up to 20 years, with possible extensions, and activities are taxed at 1% on the higher of national added value or export invoice value.
• Tax exemptions apply to specific imports, re-exports, and income from approved maquila programs, with a VAT credit refund regime for export operations.

Source: taxathand.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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