Paraguay is located in South America, surrounded by Bolivia, Brazil and Argentina. Lagoons, dense forests, marshes and jungles characterize the diverse landscape of Paraguay. Its culture is a fusion of two traditions and cultures: European and Guaraní. With a huge majority of Paraguayans who are mestizos. Paraguay is one of the most homogeneous countries in Latin America.
Paraguay has experienced the greatest economic expansion of all the South American countries and it is also one of the fastest expanding economies in the world. Part of the expansion was in the pharmaceutical and industrial sector, after years of declining production, but the main workforce is active in the mining industry. There is also rapid growth in areas like steel, organic sugar, and meat processing as well as in the production of cement, ore, iron, and steel.
Contracting in Latin America is not a simple task and has many on-costs for employers. Most in country tax laws do not recognise contractors per se, hence contract workers may need to be remunerated as employees, taxes withheld and paid to various city, state and federal governments, and reserve funds held for other entitlements until end of contract. Please contact CXC Global for professional advice on the specific legislation applying in the country in order to facilitate contractors and foreign nationals working in Paraguay. Forward planning is of the essence to optimize costs. Paraguay has entered into Double Taxation Treaties with other countries.
For foreign national contract workers, contracting in Paraguay, it would be wise to consult with CXC Global on the best way to structure, and how best to balance your taxation.
With our extensive experience and expertise in contractor management, and assisting organisations with their contingent workforce, CXC Global has the resources and solutions to manage the administration process associated with contracting in Paraguay, facilitating accounting services and administration, local tax calculations, social security registration, tax balancing and preparation of personal income tax return at the end of the tax year.