Paraguay

Paraguay has three tax agreements in force, as reported in its response to the Peer Review questionnaire. One of those agreements, the agreement with Uruguay, complies with the minimum standard.

This report compiles comparable tax revenue statistics over the period 1990-2019 for 27 Latin American and Caribbean economies. Based on the OECD Revenue Statistics database, it applies the OECD methodology to countries in Latin America and the Caribbean to enable comparison of tax levels and tax structures on a consistent basis, both among the economies of the region and with other economies. This publication is jointly undertaken by the OECD Centre for Tax Policy and Administration, the OECD Development Centre, the Inter-American Center of Tax Administrations (CIAT), the Economic Commission for Latin America and the Caribbean (ECLAC) and the Inter-American Development Bank (IDB). The 2021 edition is produced with the support of the EU Regional Facility for Development in Transition for Latin America and the Caribbean, which results from joint work led by the European Union, the OECD and its Development Centre, and ECLAC.

Using household data from 15 countries in Latin America and Africa, this paper explores linkages between informality and education-occupation matching. The paper applies a unified methodology to measuring education-occupation mismatches and informality, consistently with the international labour and statistical standards in this area. The results suggest that in the majority of low- and middle-income developing countries with available data, workers in informal jobs have higher odds of being undereducated as compared to workers in formal jobs. Workers in formal jobs, in contrast, have higher chances of being overeducated. These results are consistent for dependent as well as for independent workers. They also hold for men and for women according to the gender-disaggregated analysis. Moreover, in the majority of countries considered in this paper, the matching-informality nexus is also related to the extent of informality in a given area: in labour markets with higher informality, informal workers in particular have a higher chance of being undereducated. The paper discusses policy implications of these findings.

Paraguay does not yet have legislation in place to implement the BEPS Action 13 minimum standard.

Many Latin American countries have experienced improvements in income over recent decades, with several of them now classified as high-income or upper middle-income in terms of conventional metrics. But has this change been mirrored in improvements across the different areas of people’s lives? How’s Life in Latin America? Measuring Well-being for Policy Making addresses this question by presenting comparative evidence for Latin America and the Caribbean (LAC) with a focus on 11 LAC countries (Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Mexico, Paraguay, Peru and Uruguay). Spanning material conditions, quality of life, resources for future well-being, and inequalities, the report presents available evidence on well-being both before and since the onset of the pandemic, based on the OECD Well-being Framework. It also identifies priorities for addressing well-being gaps and describes how well-being frameworks are used in policy within Latin America and elsewhere around the world, providing lessons for governments on what is needed to put people’s well-being at the centre of their action. The report is part of the EU Regional Facility for Development in Transition for Latin America and the Caribbean.

The economic impact of the crisis due to the COVID-19 pandemic on Paraguay’s growth was modest – one of the smallest in the Latin America and the Caribbean (LAC) region – as gross domestic product (GDP) contracted annually by only 0.6%. In addition, poverty has been unchanged in the last few years. The modest shock has not much affected the poverty and extreme poverty rates (19.7% and 6.2%, respectively, in 2020 based on the latest international comparable estimations), which are lower than in LAC (30.9% and 10.0%, respectively). Just before the crisis, Paraguay’s public expenditures on health stood at 6.7% of GDP, similar to LAC (6.8%) but much lower than Organisation for Economic Co-operation and Development (OECD) countries (8.8%). However, in the last decade, Paraguay made significant progress, as public expenditures on health grew by two percentage points of GDP, catching up with the region, which recorded a modest increase of 0.3 percentage points. In 2020, 38.4% of people declared being satisfied with the quality of health care, a proportion lower than in LAC (48.2%) and considerably lower than in the OECD (70.7%). The perceived quality has decreased by more than 15 percentage points in the last decade, compared to a decrease of almost ten percentage points in LAC and an increase of more than one percentage point in the OECD. Between March 2020 and May 2021, schools were fully closed for 32 weeks, compared to 26 weeks in LAC and 15 weeks in the OECD. In 2020, 87.2% of citizens thought that the government was corrupt, up by seven percentage points in a decade. Paraguayans share the concern with other Latin Americans, as 72.4% of people in the region have similar negative perceptions, much more than in the OECD (58.8%).

El impacto económico de la pandemia de COVID-19 en el crecimiento de Paraguay fue moderado y uno de los más bajos de la región de América Latina y el Caribe (ALC), pues el producto interno bruto (PIB) solo se contrajo un 0.6% anual y la pobreza se ha mantenido invariable. A su vez, las tasas de pobreza y pobreza extrema se han mantenido (del 19.7% y el 6.2%, respectivamente, en 2020, de acuerdo con las últimas estimaciones internacionales comparables), siendo más bajas que en la región de ALC (del 30.9% y el 10.0%, respectivamente). Previo a la crisis, el gasto público en salud de Paraguay era del 6.7% del PIB, un porcentaje similar al de la región de ALC del 6.8%, pero muy inferior al 8.8% correspondiente a los países de la Organización para la Cooperación y el Desarrollo Económicos (OCDE). No obstante, en el último decenio el gasto público en salud creció dos puntos porcentuales del PIB y alcanzó el nivel de la región, que registró un ligero aumento de 0.3 puntos porcentuales. En 2020, el 38.4% de las personas se declaraban satisfechas con la calidad de la atención sanitaria, un porcentaje más bajo que en la región de ALC (48.2%) y considerablemente inferior al de la OCDE (70.7%). La calidad percibida ha disminuido más de 15 puntos porcentuales en el último decenio, frente a una reducción de casi diez puntos porcentuales en la región de ALC y un aumento de más de un punto porcentual en la OCDE. Entre marzo de 2020 y mayo de 2021, las escuelas han estado cerradas durante 32 semanas, frente a 26 semanas en la región de ALC y 15 semanas en la OCDE. En 2020, el 87.2% de los ciudadanos creían que el gobierno era corrupto, lo que supone un aumento de siete puntos porcentuales en un decenio. Los paraguayos comparten esta preocupación con otros latinoamericanos, dado que el 72.4% de las personas de la región tienen la misma percepción negativa, muchas más que en la OCDE (58.8%).

Muchos países de América Latina han experimentado mejoras en sus ingresos en las últimas décadas, y varios de ellos han entrado en la categoría de países de ingresos altos o medio-altos en términos de métricas convencionales. ¿Acaso se han reflejado estas mejoras económicas en los distintos ámbitos de la vida de las personas? ¿Cómo va la vida en América Latina? Medición del bienestar para la formulación de políticas públicas aborda esta cuestión al presentar datos comparativos del bienestar en América Latina y el Caribe (ALC), centrándose en 11 países de ALC (Argentina, Brasil, Chile, Colombia, Costa Rica, República Dominicana, Ecuador, México, Paraguay, Perú y Uruguay). El informe se basa sobre el Marco de Bienestar de la OCDE y presenta los datos disponibles sobre el bienestar antes y después del inicio de la pandemia, incluyendo condiciones materiales, calidad de vida, recursos para el bienestar futuro y desigualdades. El informe también identifica las prioridades para abordar las deficiencias en materia de bienestar y analiza el uso de marcos de bienestar en la formulación de políticas públicas en América Latina y otras partes del mundo, aportando lecciones sobre qué se necesita para que el bienestar de las personas sea el eje central de las actuaciones de los gobiernos. Este documento se ha elaborado en el marco del Mecanismo Regional de la UE para el Desarrollo en Transición para América Latina y el Caribe.

Le Paraguay compte cinq conventions fiscales en vigueur, comme l’indique sa réponse au questionnaire d’examen par les pairs. L’une de ces conventions, celle conclue avec l’Uruguay, est conforme au standard minimum.

Paraguay has five tax agreements in force, as reported in its response to the Peer Review questionnaire. One of those agreements, the agreement with Uruguay, complies with the minimum standard.

Governments can use artificial intelligence (AI) to design better policies and make better and more targeted decisions, enhance communication and engagement with citizens, and improve the speed and quality of public services. The Latin America and the Caribbean (LAC) region is seeking to leverage the immense potential of AI to promote the digital transformation of the public sector. The OECD, in collaboration with CAF, Development Bank of Latin America, prepared this report to help national governments in the LAC region understand the current regional baseline of activities and capacities for AI in the public sector; to identify specific approaches and actions they can take to enhance their ability to use this emerging technology for efficient, effective and responsive governments; and to collaborate across borders in pursuit of a regional vision for AI in the public sector. This report incorporates a stocktaking of each country’s strategies and commitments around AI in the public sector, including their alignment with the OECD AI Principles. It also includes an analysis of efforts to build key governance capacities and put in place critical enablers for AI in the public sector. It concludes with a series of recommendations for governments in the LAC region.

This report compiles comparable tax revenue statistics over the period 1990-2020 for 27 Latin American and Caribbean economies. Based on the OECD Revenue Statistics database, it applies the OECD methodology to countries in Latin America and the Caribbean to enable comparison of tax levels and tax structures on a consistent basis, both among the economies of the region and with other economies. This publication is jointly undertaken by the OECD Centre for Tax Policy and Administration, the OECD Development Centre, the Inter-American Center of Tax Administrations (CIAT), the Economic Commission for Latin America and the Caribbean (ECLAC) and the Inter-American Development Bank (IDB).

Los gobiernos pueden utilizar la inteligencia artificial (IA) para diseñar mejores políticas, tomar decisiones más acertadas y específicas y mejorar la comunicación con los ciudadanos y la calidad de los servicios públicos. La región de América Latina y el Caribe (ALC) está tratando de aprovechar el potencial de la IA para promover la transformación digital del sector público. La OCDE, en colaboración con CAF, Banco de Desarrollo de América Latina, preparó este informe para entender la línea base de acciones estratégicas y capacidades para la IA en el sector público; identificar los enfoques y acciones específicas para usar esta tecnología en la construcción de gobiernos eficientes, eficaces y receptivos; e impulsar la colaboración en la búsqueda de una visión regional para la IA en el sector público. Este informe incorpora un balance de las estrategias y compromisos de cada país en torno a la IA en el sector público, incluyendo su alineación con los Principios de IA de la OCDE. También incluye un análisis de los esfuerzos realizados para crear capacidades clave de gobernanza y poner en marcha los facilitadores críticos de la IA en el sector público. Concluye con una serie de recomendaciones para los gobiernos de ALC.

Paraguay has not yet introduced a requirement for the filing of CbC reports, as required under the BEPS Action 13 (CbC reporting) minimum standard.

Poverty in Paraguay decreased from 24.0% in 2016 to 22.3% in 2020 and remained below the Latin American and the Caribbean (LAC) average of 26.3%. These figures mask the effect of strong efforts to decrease poverty before the shock of the COVID-19 pandemic, which brought the figure down to 19.4% in 2019. Extreme poverty consistently decreased in that period, from 7.9% to 6.0%, below the LAC average (8.7%). The population living in completely informal households decreased from 66.4% in 2009 to 58.0% in 2018 higher than the LAC average of 36.3%. Regarding environmental indicators, in 2019, greenhouse gas (GHG) emissions per capita were 7.0 tonnes of carbon dioxide equivalent (t CO2e), higher than the average for LAC (6.3) but below the average for countries belonging to the Organisation for Economic Co-operation and Development (OECD) (9.1). That year, the share of the population exposed to air pollution levels that pose risks to human health (PM2.5 at more than 10 µg/m3) was 100%, higher than 95.4% for LAC and 61.0% for the OECD. On the fiscal side, environmentally related tax revenue was 0.9% of gross domestic product (GDP) in 2020, below LAC average (1.0%) and the OECD average (2.1%). Total tax revenue as a percentage of GDP in 2020 (13.4%) remained considerably lower than the averages for LAC (21.9%) and the OECD (33.5%).

La pobreza en Paraguay disminuyó del 24.0% en 2016 al 22.3% en 2020, y se mantuvo por debajo del promedio, 26.3%, registrado en América Latina y el Caribe (ALC). Sin embargo, estas cifras ocultan el efecto de los sólidos esfuerzos adoptados para disminuir la pobreza antes de la pandemia de COVID-19, con los que se llegó a reducir dicha cifra hasta el 19.4% en 2019. La pobreza extrema también disminuyó de manera sistemática durante ese periodo, pasando del 7.9% al 6.0%, situándose por debajo del promedio de ALC (8.7%). La población que vive en hogares completamente informales disminuyó del 66.4% en 2009 al 58.0% en 2018, por encima del promedio de ALC del 36.3%. En lo que respecta a los indicadores medioambientales, en 2019 se registraron emisiones de gases de efecto invernadero (GEI) per cápita de 7.0 toneladas equivalentes de dióxido de carbono (t CO2e), superiores al promedio de ALC (6.3) e inferiores al promedio de los países miembros de la Organización de Cooperación y Desarrollo Económicos (OCDE) (9.1). Ese año, la proporción de población expuesta a niveles de contaminación del aire que suponen un riesgo para la salud humana (PM2.5 a más de 10 µg/m3) fue del 100%, situándose por encima del 95.4% registrado en ALC y del 61.0% en los países miembros de la OCDE. En materia fiscal, los ingresos tributarios ambientales supusieron el 0.9% del producto interno bruto (PIB) en 2020, por debajo de los promedios de ALC (1.0%) y de la OCDE (2.1%). El total de ingresos tributarios expresado como porcentaje del PIB en 2020 (13.4%) siguió siendo muy inferior a los promedios de ALC (21.9%) y de la OCDE (33.5%).