Individuals with residence in Paraguay and/or abroad are taxable on Paraguayan-source income.
Personal income tax rates
Individuals resident in Paraguay
The general PIT rate is 10% for individuals with residence in Paraguay who obtain an annual income equal to or higher than 120 monthly minimum salaries. The salary to be used is that which is in force on 1 January of every year.
A PIT rate of 8% is applicable for individuals whose annual income is lower than 120 monthly minimum salaries. The amount taxable is the income equal to or higher than 48 minimum salaries in fiscal year (FY) 2018. The amount taxable will be reduced by 12 monthly minimum salaries per year until FY 2019, when the final minimum amount will be 36 monthly minimum salaries (approximately 13,000 United States dollars [USD] annually).
Individuals living abroad
For individuals living abroad and deriving profits from activities performed inside the Paraguayan territory, the PIT rate is 20% over the net income of 50% of the perceived income (price of the services), which results in an effective tax rate of 10%.