- Income tax brackets updated
Refreshed for 2026; verification date, data year, brackets/sources, treaty count 6, digital services tax yes, notes and USD brackets (ekuatia.set.gov.py; taxsummaries.pwc.com).
PY
Paraguay
South America
PYG
PY · PRY · #59 · 10 cities
Nomad score
56/100
Compare
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
Income tax brackets
Corporate
| Bracket min | Bracket max | Rate |
|---|---|---|
| PYG 0 | and above | 10.0% |
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| PYG 0 | PYG 50,000,000 | 8.0% |
| PYG 50,000,000 | PYG 150,000,000 | 9.0% |
| PYG 150,000,000 | and above | 10.0% |
Tax flags
Digital Services Tax
Territorial Exemption
Tax residency
- 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
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- March
Sources
- 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