Paraguay

Corporate - Corporate residence

Last reviewed - 11 February 2020

Corporate legal residence is determined as the place where direction or central management takes place, unless the corporation’s charter states otherwise.

Permanent establishment (PE)

The Paraguayan Tax Law establishes the definition of a PE.

The following activities may be considered as a PE in the country:

  • Branches or agencies.
  • A factory, industrial plant, or cattle ranch entity.
  • Mine activities, or any other natural resources extraction activities.
  • Civil construction or assemble activities that exceed 12 months.

If a person provides instructions related to the agreement of certain operations on behalf of a foreign entity, this operation may be considered as a PE in the country, except in cases where the mentioned instructions are related to the purchase of goods.