Individual - Taxes on personal income

Last reviewed - 06 February 2023

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 36 monthly minimum salaries (approximately 13,000 United States Dollars [USD] annually). The salary to be used is that which is in force on 1 January of every year.

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%.