Accounting and legal

Accounting and tax

    Paraguay corporate tax
  1. The standard corporate income tax rate in Paraguay is 10%. An additional 5% tax is levied on the net amount credited or paid to partners, owners or shareholders when profits are being distributed;
  2. Dividends distributed to non-residents individuals and entities are subject to a 15% withholding tax;
  3. The VAT rate is levied at a standard rate of 10% and the returns are to be filed on a monthly basis. All businesses established in Paraguay are required by law to register for VAT;
  4. Employers are required to remit a total of 16.5% of the total income of an employee towards the employee’s social security. The employers are also obligated to withhold the 9% employee portion;
  5. Real property in Paraguay is subject to a 1% annual tax of the cadastral valuation, collected by the local authorities. Surtaxes also apply for specific types of property at an annual rate of 0.3% on the transfer of immobile property;
  6. Withholding tax rates on payments to resident companies are i) 15% on dividends ii) 15% on royalties iii) 15% on interests;
  7. A Paraguayan company is exempt from i) payroll tax ii) capital duty iii) foreign tax credit iv) stamp duty;
  8. The Paraguayan fiscal year is simultaneous with the calendar year. Companies are required to submit their tax returns within 4 months after the end of the fiscal year. Defaulters are subject to a penalty of 4% to 14% of their total tax due;
  9. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

External videos

Contact us

For additional information on our accounting and tax services in Paraguay, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly: