Paraguay Looking to Introduce Transfer Pricing Rules

Paraguay's executive branch on 9 May presented to the National Congress a draft law that, among other things, would introduce the country’s first transfer pricing regime.

Under the draft Law, the prices and conditions established in related-party transactions with domestic or foreign entities must be consistent with those in transactions between independent parties in comparable situations. The tax administration would have the authority to adjust the price and revise the parties’ taxable in…