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The PPP Act 5102/2013 seeks to establish standards and mechanisms to promote, through innovativepublic-private participation, investments in public infrastructure as well as in the production of goodsand provision of services that are themselves the subject of agencies, entities, public companies andcompanies in which the Government is party. For the first time, the Government assumes the role of aresponsible modern State, leaving behind sterile and paternalistic customs.To achieve these laudable goals, the figure of contracts of public-private partnerships or PPP contractsis established, which include the figure of the private sector and regulates the use of trusts, present inParaguayan Act since the enactment of the Act 921/1996.The guiding principles of this new way of work ar: monitoring and control of the State, transparencyand accountability, social profitability , economic efficiency , competition and equality, legal security,temporality, fiscal responsibility, environmental sustainability, legality, rationality, efficiency andgeneral interest. These principles are set out in the Act itself and Decree 1350 complements andintegrate them. The principles are mandatory and they design the entire structure of the ActBFISCAL AND LEGAL INCENTIVESParaguay’s government policy is to promote foreign investment in all economic sectors with noGovernment approval required, enabling companies to be fully foreign-owned.In general, all types of business activities are open to foreign investment. However, special preferenceis given to those that will use local raw materials and labor. Act 60/1990 foresees the system foreconomic development through incentives by granting special benefits, enabling repatriation of capitaland profits, and providing guarantees against inconvertibility. An application must be filed to obtainthe special benefits granted by Act 60/1990.Recent years have revealed the implementation of a new legal framework in terms of banking andfinancial issues, insurance, stock market, taxes, labor Act, environment, intellectual property,investments, telecommunications, among others.Investment environment in Paraguay is attractive for its long-standing free-enterprise support, whichrelatively low labor cost, abundant energy and the lowest tax burden in Latin America investors benefitfrom. It should be noted that personal income tax has not yet been introduced in Paraguay.12Berkemeyer Attorneys and Counselors | Asunción - Paraguay