Investors dealing with the country consider as crucial and are extremely interested in the final approval by the congress of the Guarantee on Investments Law. The great importance of this legislation is that it will be finally improving the long-awaited legal certainty to industrial investor, especially overseas.
The statistics of the last ten years on investments in the country have shown significant growth, from tax incentives and other benefits provided for by specific laws. There are examples of achievements regarding Law 60/90, which establishes the "incentive scheme for imports of capital goods and tax breaks for the industry," as well as Law No. 1064/97, the "Maquila Regime export ". Also each year the number of projects approved under Law 60/90 increases considerably of which 70 percent are domestic and 30 percent correspond to foreigners. At the same time, the regime is also applicable to small and medium enterprises, which are major in the country.
Despite this attractive investment scenario, President Horacio Cartes is rushing the sanction by the Congress a bill that "guarantees for the Promotion of Investment and Employment Generation and Economic and Social Development." Currently this project has already been approved in deputies and is awaiting approval in the Senate.
One of the main incentives for this new standard is the tax invariance of income tax levied on the activity of the undertaking, for a period of 10 years. If investment exceeds US$ 100 million, within the tax invariance can be extended to 20 years. It further states that currency conversion "at the exchange rate more favorable for investors subject to this law can get."
This new act is aimed at attracting investment from domestic and foreign capital by giving the legal certainty that is needed by countries in this region. This act along with the Pubic Partnership Law and other passed by this government have the goal to boost the economy and contribute to sustainable development by generating new jobs, industry growth and incorporation of technology.