Page 42 - TCL International VILLETA BUSINESS PLAN AND FEASABILITY STUDY

- Create permanent jobs.
14.
- Increase quality export products.
- Increase the production of goods and services.
- Incorporate technologies to increase efficiency and to improve
the use of raw materials and energy resources.
For a person or an organization to be awarded the benefits of this
law they must comply with the following investment modes:
- In leasing of capital goods.
- In specialized technical services.
- In cash, credits, or other financial structures.
- In trademarks, drawings, industrial proceses, or technology.
- In capital goods, raw materials, or improvements to the local
industry.
The main benefits are the following:
- Full exemption of fiscal and city taxes.
- Full exemption of duties on capital goods and raw materials.
- Full exemption of all taxes on dividends and profits for 5 years.
- Full exemption of taxes on remittance resulting from interest,
commissions or capital.
B. Environmental Protection Law No. 294/ 93
The law requires the preparation of an Environmental Impact Assessment.
The EIA is understood to be, from the legal point of view, any modification
in the environment that will affect both life in general and the natural
resources. Its objective is to ensure the population’s well-being as well as
the preservation of all cultural heritages.
C. Arbitration and Mediation Law No. 1879/ 02
This arbitration law was enacted to provide a settlement for national and
international cases, as well as to regulate arbitration dispute locations,
both national and international. Paraguay is a party of the following
arbitration conventions.
• Convention on the Recognition and Enforcement of Foreign Arbitration
Awards (New York, 1958).
• Inter-American Convention on International Commercial Arbitration
(Panama City, 1975).
• International Convention for the Settlement of Investment
Disputes (Washington, 1979).
Financial Analysis
Table FA1: P&L Statement
Table FA2: Sources and Uses of Funds
Table FA3: Investment Required
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