The tax authority (SET) issued a Decree on 27 September 2017 (N° 7795/17) including the creation of the National Electronic Invoicing System (SIFEN). This means that in the short-term the issuance of electronic invoices will be mandatory for local companies (2020).
The SET issued electronic invoicing regulations during the 2018, outlining the conditions and requirements to start the pilot project to implement the SIFEN, including a Technical Manual that describes the main requirements for the electronic invoices.
14 local taxpayers integrated the Pilot Project and, in November 2018, these companies issued the first electronic invoice.
During the first semester of 2019, the SET started the second stage, called the 'Voluntary Stage', in which the local taxpayers that participate in this stage have the intention to become electronic invoice issuers.
In addition to this, the Chamber of Senators approved the Law proposal regarding the elimination of bearer shares (equities without owner identification). According to this law, the companies' shares must be nominated within two years from the date of the law enacted by the government.
The government has announced the start of the process to apply to the Organisation for Economic Co-operation and Development (OECD) as a full member.
In that context, Paraguay issued a General Resolution that designated a local Committee (including public and private people) in order to analyse a Tax Reform that will include transfer pricing rules, among others modifications.
In May 2019, this Committee finished the Tax Reform Project, which is under analysis by the National Congress. In accordance with tax authority communications, the Law is expected to be regulated during the second semester of 2019, and the Law will be in force from the following fiscal year (2020).
The Tax Reform Project includes important changes, such as Transfer Pricing Rules, creation of a specific income tax for non-residents, unification of the Agricultural Income Tax and the Commercial Income Tax, and reduction of some tax rates for foreign investors, among others.