Individual - Deductions

Last reviewed - 06 February 2023

Employment expenses

Travel expenses and other similar payments are deductible, as long as they are necessary to produce such taxable income and comply with certain conditions established in the regulations.

Personal deductions

Charitable contributions

Donations to the state, municipalities, and religious entities recognised by competent authorities are deductible, as well as donations to legally constituted entities dedicated to social welfare, education, cultural development, charity, or philanthropy previously recognised by the administration as public service organisations. In the mentioned cases, the deduction is applied under certain conditions.

Savings deduction

Individuals who do not contribute to the social security system can deduct up to 15% of the gross income placed in:

  • A saving account at financial and banking entities regulated by law 861/96.
  • Cooperatives that carry on activities of saving and credit.
  • Investments in nominated shares in entities with open capital in the country.
  • Private retirement or pension funds in the country with at least 500 active payers.

Family expenses

Family expenses and personal investments, such as education, health, clothing, housing, and own and family entertainment, are deductible as long as the titular is not a taxpayer of any other tax in which the expenses have already been deducted. The mentioned expenses have to be made in Paraguay. However, certain expenses made abroad are permitted as deductible expenses.