Paraguay and Spain ratified an agreement that seeks to avoid double taxation and prevent tax evasion or avoidance in terms of income taxeswhich must be approved by their respective Congresses for its entry into force, reported the Ministry of Foreign Affairs in Asunción.
The Minister of Foreign Affairs of Paraguay, Julio César Arriola, and the Minister of Foreign Affairs of Spain, José Manuel Albares, ratified the agreement during the XXVIII Ibero-American Summit of Heads of State and Government, detailed the Foreign Ministry in a statement collected this Sunday by the state Paraguayan Information Agency.
The Ibero-American Summit was held between this Friday and Saturday in the Dominican Republic.
Last November, Paraguayan President Mario Abdo Benítez announced that his country had reached this agreement with Spain.
experts from both countries reached an agreement on the articles of the instrument during the third round of negotiationsheld on November 7, 2022 in Madrid.
Both countries began contacts in 2013, when the first round of negotiations took place. The second cycle of approaches was held in April 2014.
The agreed document observes standards of the Organization for Economic Cooperation and Development (OECD) and includes measures to prevent base erosion and profit shifting (BEPS), according to the note.
The instrument must receive the approval of the Congresses of both countries.