Paraguay tax authority, banks agree on data exchange for credit checks

Paraguay's tax authority and banking association have joined forces to develop a digital platform for secure information exchange, a move expected to streamline credit analysis and reduce risk for financial institutions. The National Directorate of Tax Revenue (DNIT) and the Association of Banks of Paraguay (Asoban) signed a cooperation agreement to build a system that will allow banks to access customer tax declarations, but only with the explicit consent of the client.

This new tool is slated for operation in the first quarter of 2027. The agreement, formalized during the 2nd Banking Convention of Paraguay 2026, aims to facilitate digital, secure, traceable, and standardized data sharing. According to Óscar Orué, the national director of Tax Revenue, the platform will enable banks to consult specific tax declarations and allow the DNIT to request banking information as part of its control processes.

A key feature of the agreement is the requirement for explicit client authorization before any data can be accessed. Orué emphasized that banks will not have unrestricted access to tax information, but rather to specific declarations managed through the banking entity with an electronic signature. This controlled access is designed to protect taxpayer privacy while providing valuable data for financial institutions.

The primary benefit for the financial sector, as highlighted by Orué, is access to primary source information for assessing loan applicants. "The biggest problem we have is the risk that each bank assumes when it is going to lend money," he stated, indicating that the platform will help mitigate this by offering a clearer picture of a borrower's financial standing.