Paraguay prepares to tax digital platforms

The State Undersecretariat of Taxation of Paraguay (SET in Spanish) is working on a regulation to begin charging tax on foreign digital platforms, including Netflix and Spotify.
The initiative comes after the law for the Audiovisual Promotion was enacted, which establishes that the budget to finance movie projects will come from “taxes on commercial operations from audiovisual services, over the internet, from abroad, to be retained by the operators of credit and debit cards “. According to the regulation, 50% of collections will go to the Paraguayan Audiovisual National Fund (Fonap), created by the law.
The Deputy Minister of Taxation, Liz Del Padre, said that they are analyzing experiences from other countries such as Argentina, which recently regulated the tax on digital platforms, according to Última Hora. The new law said the SET has a period of 180 days to design the collection system.