🇵🇾 Paraguay Tax Guide - Income Tax, Corporate Tax & Special Regimes

Top income tax 10.0% Territorial system

Corporate tax 10.0%

IVA 10.0% standard rate

Tax residency 120 days 6 tax treaties

Paraguay tax profile

Data year: 2026

Tax system: Territorial Paraguay taxes Paraguayan-source income only (territoriality). Foreign-source income is generally outside the IRP and IRE bases. Law 6380/2019 governs the modern system (IRE, IRP, IDU, INR).
Top PIT rate: 10.0%
Corporate tax rate: 10.0%
IVA: 10.0%
Capital gains tax: 8.0% Capital gains and other capital income taxed at 8% under IRP (rentas y ganancias de capital), unless already covered by the Tax on Dividends and Profits (IDU).
Social security (employee): 9.0%
Social security (employer): 16.5%
Dividend withholding: 15.0%
Interest withholding: 15.0%
Royalty withholding: 15.0%
Treaty count: 6

Corporate

Corporate brackets
Bracket min	Bracket max	Rate	USD equivalent
PYG 0	and above	10.0%	$0 +

Personal income

Personal income brackets
Bracket min	Bracket max	Rate	USD equivalent
PYG 0	PYG 50,000,000	8.0%	$0 – $6,579
PYG 50,000,000	PYG 150,000,000	9.0%	$6,579 – $19,737
PYG 150,000,000	and above	10.0%	$19,737 +

Digital Services Tax Territorial Exemption

Days threshold: 120 days
Residency rules: PwC treats an individual as tax-resident after more than 120 days in Paraguay in a calendar year. DNIT issues tax-residency certificates under Resolution 65/2020 (RUC, compliance, migration record) without a statutory day-count test; Law 125/1991 art. 152 uses 120 days for domicile presumptions, which is distinct from certificate practice. Center of vital interests and RUC registration matter for ongoing compliance.
Exit tax: No
CFC rules: No

SET — Impuesto a la Renta Personal (IRP) (accessed Oct 9, 2026) Territorial IRP; PIT 8/9/10% on personal services; 8% capital income; March filing
DNIT — IRP rentas por servicios personales (cartilla) (accessed Oct 9, 2026) Progressive net-income brackets; no tax due if gross personal-service income ≤ PYG 80M
DNIT — Convenios internacionales (accessed Oct 9, 2026) Income-tax treaties with Chile, Taiwan, UAE, Qatar, Uruguay; Spain effective 2025 (Ley 7271/2024)
PwC Paraguay Tax Summaries (accessed Oct 9, 2026) IRE 10%, IDU 8%/15%, INR/WHT, social security, residency, digital services, no CFC

Oct 9, 2026
- Brackets updated
Refreshed for 2026; `verified`, `data_year`, brackets/sources, `treaty_count` 6, `has_digital_services_tax` true, prose and USD brackets (https://ekuatia.set.gov.py/web/portal-institucional/irp; https://taxsummaries.pwc.com/paraguay).

AL Albania Unique Permit for Digital Mobile Workers	$610/mo
EC Ecuador Digital Nomad Visa (Visa Nómada)	$1,446/mo
ME Montenegro Digital Nomad Residence Permit	$1,460/mo
MU Mauritius Premium Visa	$1,500/mo

GE Georgia Small Business Status (1% Tax)	1%
JE Jersey High Value Resident (HVR)	1%
UZ Uzbekistan IT Park Resident Status	1%
SO Somalia Presumptive Tax Regime (PTR)	1.5%