Individual - Income determination

Last reviewed - 31 August 2020

Employment income

Formal or accidental remunerations derived from personal work performed in a dependent or independent relationship, regardless of the beneficiary, is subject to PIT.

Capital gains

The gross income derived from the occasional sale of real estates, rights transference, bonds and shares, or capital quotes is subject to PIT.

Dividend income

50% of the income derived from dividends, profits, and any other result that can be obtained as shareholders or partners of entities included in the Income Tax from Commercial, Manufacturing, or Service Activities (ITCMSA), Income Tax on Domestic Marketing of Cattle (ITDMC), and Agricultural Income Tax is subject to PIT.

Interest and other incomes

The interest, commissions, and any other income obtained from royalties is subject to PIT.

Additionally, any other income from a Paraguayan source is taxable, under the condition that the income is higher than 30 minimum monthly salaries.

In these instances, the incomes will be taxable only if they are not subject to the ITCMSA, ITDMS, the Agricultural Income Tax, or the Income Tax of the Small Taxpayer (ITST).