Corporate - Taxes on corporate income

Last reviewed - 18 August 2021

Create a Business Income Tax (IRE), which will tax all Paraguayan income, profits or earnings that come from all types of economic, primary, secondary and tertiary activities, including agricultural, commercial, industrial or services. , excluding those income taxed by the IRP.
The income generated by the assets, rights, obligations, as well as the acts of disposition of these, and any increase in the taxpayer's patrimonial will also constitute a taxable event.

Medium size CIT

The Law establishes a Simplified Regime for Medium-sized Companies (Its acronyms in Spanish IRE SIMPLE), applicable to cetain taxpayers who carry out activities taxed by the IRE, who may opt for this Regime, when their income accrued in the previous fiscal year, do not exceed the amount of G. 2,000,000,000 (Two billion guaraníes) approximately US$ 295.000.
Said taxpayers may settle this tax by determining their net income on a real or presumed basis, whichever is less

Small Business
Also , the Tax Law stablishes a Simplified Regime for Small Businesses (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 G. 80,000. 000 (Eighty million guaranies), aproximately US$ 12.000.
The taxpayers of this regime will pay a monthly sum equivalent in guaranies, according to the payment schedule established by the Tax Administration. The tax amount is from 20.000 (US$ 3) to 80.000 Guaranies (US$ 12), which depend 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 or patrimony taxes in Paraguay.