June, 2016

SUBSECRETARÍA DE ESTADO DE TRIBUTACIÓN

PARAGUAY

Northern Regional Office – 7%

Central Regional Office – 9%

East Regional Office– 15%

Southern Regional Office– 9%

West Regional Office– 35%

Asunción - 25%

700.000TAX PAYERS

REPUBLIC OF PARAGUAY

Population: 7 millionsPEA: 3,5 millions

Economic growth: 5%GDP per capita: USD 3.673

Inflation: 3,1%

7° clean energy producer.

4° Soybean producer.

6° meat exporter.

ENCOURAGE COMPLIANCE

COLLECT TAXES

SET ESSENTIAL GOALS

TAX CONTROL

SUSTAINED INCOME GROWTH

11,7%

11,0%

23,0%

9,4%

6,000

8,000

10,000

12,000

2011 2012 2013 2014 2015

INCLUDES TAX CREDITS PAYMENTSAMOUNTS ARE IN MILLIONS OF GUARANÍES

10,3%

16,2%

11,7%

12,0%

18,7

-

300,000

600,000

900,000

1,200,000

1,500,000

ENERO FEBRERO MARZO ABRIL MAYO

INCLUDES TAX CREDITS PAYMENTSAMOUNTS ARE IN MILLIONS OF GUARANÍES

2015 2016

HOW WE DID IT?

PUBLIC AWARNESS ABOUT MEGAEVASION SCHEMES

PUBLIC AWARNESS ABOUT MEGAEVASION SCHEMES

TAXES AND PENALTIES RECOVERED IN MEGAEVASION SCHEMESAmounts are in millions of Guaraníes

OPERATIONSTAXPAYERS INVOLVED

INITIALAMOUNT

CLAIMED AND DENOUNCED TO

THE PROSECUTORS

INITIAL INCOME EXPECTATION

TAXES AND ACCESORIES

ALREADY RECOVERED

PENDING TAX AND ACCESORIES

MEGA 1 (2014) 310 310.106 44.660 104.981 95.905

MEGA 2 (2015) 300 383.617 59.781 69.939 212.768

MEGA 3 (2016) 287 1.602.837 152.978 825 30.371

MEGA 4 (2016) 26 16.592 1.562 799 -

TOTALS 2.313.152 258.981 176.544 339.044

G 483.593(4 TIMES THE INITIAL ESTIMATED RESULT)

AMOUNTS OF MONEY IN FAKE INVOICESPER YEAR IN THE “TURISMO DEL ESTE” OPERATION

Amounts are in millions of Guaraníes

AÑOS MEGA 3 PORCENTAJE

2010 216.864 14%

2011 307.795 19%

2012 201.337 13%

2013 449.419 28%

2014 301.186 19%

2015 126.236 7%

TOTAL: 1.602.837 100%

14%

19%

13%

28%

19%

7%

0%

5%

10%

15%

20%

25%

30%

2010 2011 2012 2013 2014 2015

PEOPLE CONVICTED FOR TAX EVATION

TAX PAYERS REGISTRATION PROCESS

BEFORE

TAX PAYERS REGISTRATION PROCESS TODAY

On line registrationrequest

Main informationvalidation

Risk análisis criteria: Same Adress.Same email.Same accountant.Same phone number.

RED SCOPE

TAX PAYERS REGISTRATION PROCESS TODAY

SET aprobation

Data validationmeeting

Biometric and photograpyregistration

TAX PAYERS REGISTRATION FINAL PROCESS

FIRST RESULTS OF THE NEW PROCESS

FOR EVERY 100 REGISTRATIONS, 30 TAX PAYERS HAVE FALLEN IN THE “RED SCOPE”

AND 15 HAVENT PASSED THE LOCATION TESTS

ON LINE SET’S SERVICES

92% of notifications are made through“Marandú”

96% of TaxDeclarations are made on-line

80% of paymentsare made on-line

73% has an on-line Access code

100% taxwhitholding virtual invoicesthrough“TESAKA”

96% of TaxDeclarations are made

on-line92% of notifications are

made through “Marandú”

80% of payments are made on-line

73% has an on-line access code

100% tax whitholdingvirtual invoices

through “TESAKA”

DATA CROSSING

Buys and Sells

Informants

Tax Whitholders

Criteria: Buyers or

selles + 3.000

millions

Representes

about

70 % of the

total declared

operations

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

10.5%

5.8%

8.1%

6.1%5.6%

4.6%3.9%

1.2%0.7%

1.5%

AVERAGE IN 10 YEARS

3,7 %

AVERAGE IN 3 YEARS

1,1 %

% OF BAD DEBTOR VS. TOTAL INCOMES

INFORMATION PROCESSED IN THE M.S.

ABRIL 2015

ABRIL 2016

938.792 DDJJ processed

1.831.204 DDJJ processed

Abr/15 Abr/16Average amount of information processed

per day31.293 61.040

Average amount of information processed per hour

1.304 2.543

Average amount of information processed per minute

22 42

WHERE ARE WE GOING?

NEWEST TECNOLOGIES

MARANGATU SYSTEM UPDATES

Tender for theprocurement of update services Arrangements for

Electronic Invoicesimplementation

Software

Arquitecture

On-line registrationsand updates

Data Base optimitation

Internal Proceses Improvements

More virtual invoices

Credits refund, Audits, Collections and legal

proceses optimization

ON-LINE SET

TAX INTELLIGENCE CENTER

THANK YOU VERY MUCH