Paraguay

Corporate - Taxes on corporate income

Last reviewed - 18 July 2022

10% Business Income Tax (IRE) is applicable to all Paraguayan income, profits, or earnings that come from all types of economic, primary, secondary, and tertiary activities, including agricultural, commercial, industrial or services. The income generated by assets, rights, and obligations, as well as the acts of disposition of these, will also constitute a taxable event.

Simplified Regime for Medium-sized Companies (IRE SIMPLE)

The Law establishes an IRE SIMPLE, applicable to certain taxpayers who carry out activities taxed by the IRE who may opt for this Regime when their income accrued in the previous fiscal year does not exceed the amount of 2 billion Paraguayan guaranies (PYG).

Such taxpayers may settle this tax by determining their net income on a real or presumed basis, whichever is less.

Simplified Regime for Small Businesses (RESIMPLE)

The Law establishes RESIMPLE, intended for those sole proprietorships that carry out activities taxed by the IRE, who may opt for this Regime when their gross income accrued in the previous fiscal year is equal to or less than PYG 80 million.

The taxpayers of this Regime will pay a monthly sum according to the payment schedule established by the tax administration. The tax amount is from PYG 20,000 to PYG 80,000, which depends on the annual income.

The tax administration may establish that said payments are accumulated for their effectiveness on a quarterly, semi-annual, or annual basis.

Local income taxes

There are no other income taxes in Paraguay.