Law 6380 of 2019 rebuilt Paraguay’s tax system: a 10% business income tax, a separate tax on dividends, a personal income tax, a withholding tax on payments abroad and VAT at 10% and 5%. These pages translate in full Books I and II of the Law, except the excise tax, grouped by tax, with the Spanish original under every paragraph.
Taxpayers, residence, Paraguayan source, gross and net income, deductible and non-deductible expenses, losses, the 10% rate, exemptions.
Arts. 26–34IRE SIMPLE and RESIMPLESimplified regimes for small and medium businesses: turnover thresholds, the 30% presumption, fixed monthly amounts, switching regimes.
Arts. 35–39Transfer pricingThe arm’s length principle, comparability, related parties and low-tax jurisdictions, the methods, the technical study.
Arts. 40–46Dividend and profit tax (IDU)Distributions and deemed distributions, 8% for residents and 15% for non-residents, withholding, when profits are made available.
Arts. 47–70Personal income tax (IRP)Resident individuals: capital income and gains at 8%, personal services at 8–10%, deductions, the ₲ 80 million threshold.
Arts. 71–79Non-resident income tax (INR)Payments abroad: Paraguayan source, digital services, deemed net income from 30% to 100%, the 15% rate, withholding.
Arts. 80–106Value added tax (IVA)Taxable events, digital services from abroad, territoriality, input tax credit, the 10% and 5% rates, exemptions, exporters’ refunds.
| Tax | Who pays | Rate |
|---|---|---|
| IRE | Companies, sole proprietorships, branches and permanent establishments | 10% of net income |
| IDU | Owners, partners and shareholders receiving profits | 8% resident, 15% non-resident |
| IRP | Resident individuals | 8% on capital income; 8–10% on personal services |
| INR | Non-residents with Paraguayan-source income | 15% of deemed net income |
| IVA | Businesses selling goods and services, importers, digital services from abroad | 10% general, 5% reduced |
Paraguay publishes no official consolidated text, so we incorporate later amendments from the amending laws and note each one. In the articles translated here, Law 7067 of 2023 amended the VAT exemptions in Art. 100 (national public passenger transport). Law 7508 of 2025 amended Art. 115 on the excise tax (ISC), which is not translated here. Law 7143 of 2023 created the National Directorate of Tax Revenue (DNIT), which took over from the Under-Secretariat of State for Taxation (SET); references to the Tax Administration are to the DNIT. A bill filed in the Senate in October 2026 would raise the IRE rate for financial entities to 15%; it has not been passed. Each tax has its own implementing decree, cited on its page.
Each topic page has a short summary, our commentary, the full English text with the Spanish under every paragraph, and the laws that changed the wording. Article anchors follow the Law’s numbering: #art-21, #art-43, #art-90; paragraph anchors add -p1, -p2.
Unofficial translations for information. Only the Spanish text published in the Gaceta Oficial is authentic. Nothing here is tax advice.
IRE, IDU, IRP, payments abroad or VAT: we work from the Law, from Asunción. Fixed quote within one business day.
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