Paraguay announced in the Official Gazette the ratification of its pending income tax treaty with Spain on 29 May, 2024.
Signed on 25 March, 2023, this treaty – double taxation agreement (DTA) – is the first between the two countries. It aimed at preventing double taxation and fiscal evasion with respect to taxes on income.
The treaty will become effective 90 days after the exchange of ratification instruments and will be applicable from 1 January of the year following its implementation.
Previously, the Spanish Congress of Deputies (the lower house of parliament) passed the law to ratify the pending income tax treaty with Paraguay on 23 May, 2024.
