Paraguay

Corporate - Branch income

Last reviewed - 11 February 2020

Branches are taxed at the same rate as domestic corporations. Profits transferred or credited to the head office are subject to a 15% withholding tax (WHT) when remitted to the head office abroad.

Additionally, the payment of dividends (by the head office's instructions) is subject to a tax rate of 5%, which has to be paid at the time of the remittance and charged to the local entity.