ADVANTAGES OF PARAGUAYAN TAX ID FOR NORTH AMERICAN

Here are some of the reasons you should open your Paraguayan Tax ID once obtained your Temporary Residency card and your Paraguayan Cedula or ID.

A simple overview

Being an US citizen comes with a lot of taxes obligations and one way to ease this burden is by obtaining your Paraguayan TAX ID.

All U.S. citizen living in the U.S. not only have federal taxes, but must also deal with state, county and other potential taxes (like property takes) and having a second Tax ID and in this case, a Paraguayan Tax ID, will avoid you certain tax payments and benefist.

For example, if you remain for 330 days outside the US, (calender days) each year, then you can reduce your federal taxes by way of non-resident status, which allows for certain deductions. The primary deduction can round up to USD 120.000 each year (please take note that this amount can change eventually from year to year).

Consequently the Paraguayan TAX ID helps establishes a “tax home” outside the US., in order to use the same as evidence of obligations in other tax jurisdictions

It is important to mention that as an US citizen, you will always have to pay and report tax on worldwide income.

Paraguayan Tax ID can be obtained once either by a physical person or a company. Prior to filing for the same, each individual must obtain their temporary residency which also allow the issuance of the Paraguayan ID.

As a matter of fact, the Paraguayan Tax ID is composed of your Paraguayan ID number plus an additional number, issued by the SET (SECRETRIA DE TRIBUTACION) o tax secretary; the process of obtaining your Paraguayan Tax ID or RUC is very simple and can be done in 4 to 8 working days.Once obtained, you will have monthly and year tax obligations in Paraguay.

For more information please contact us at info@acoley.com.py or directly at +595985103755