ATOME Energy has announced that its 145 MW Villeta Project in Paraguay has been granted Free-Trade Zone status by Presidential decree, bringing significant financial benefits to the project and its funders.
ATOME is pleased to announce that the Presidential decree has been signed now granting the Villeta Project full FTZ status. This is only the sixth FTZ in Paraguay and as a result will grant ATOME with the following benefits which materially enhance the economics of the Villeta Project:
- Exemption from VAT on:
- Sales of goods and services from Paraguay to the FTZ.
- Import of equipment and services
- Services provided by the concessionaire to FTZ.
- 3% effective corporate income tax (CIT) on profit derived from domestic sales to Paraguay.
- 0.5% Free Trade Zone tax on revenue from export sales, no CIT.
- Exemption from CIT and/or withholding taxes including on:
- Remittance of profits or dividends by FTZ users to third countries.
- All payments of fees, commissions, interest, and all other remuneration on all services, including financing, provided from third party countries to FTZ Users.
- Exemptions from local and municipal taxes and charges
Government backing for ATOME’s projects
This is a demonstration of government support for ATOME’s Villeta Project and its determination to make the project a success both for ATOME and Paraguay’s ambition in being a leader in green fertilizer production. This support has been key in relation to the granting of the FTZ and the Environmental Licence, having expeditiously passed all necessary inter-governmental approvals, which are important milestones towards project financing and construction of the Villeta facility.
Paraguay economic performance and growth aspirations
Paraguay has political and economic stability and one of the best performing economies in Latin America, with inflation falling sharply this year to 3% (as of October 2023) and economic growth expected by Fitch to rebound by 5.2% in 2023. The latest Fitch Ratings report affirmed Paraguay’s stable outlook at a BB+ credit rating, one mark short of investment grade, whilst raising the country ceiling to BBB-.
Peter Levine, Chair, commented: “Through successive administrations it has been both consistently crystal clear that Paraguay is open for business and encourages and supports serious foreign investors and investments.” “We are greatly honoured by President Peña by his signing of the decree for the tax-free zone in Villeta and we are grateful for the support and trust he and his Ministers have given to us in this important landmark project for the country of Paraguay.”
Read the article online at: https://www.worldfertilizer.com/project-news/14112023/atome-energys-green-fertilizer-project-is-granted-ftz-status/
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