Americas · Tax guide

Paraguay

Paraguay has some of Latin America's lowest taxes: corporate income tax of 10% and VAT of 10%, with a separate tax on dividends. Electronic invoicing (SIFEN) is being phased in. Taxes are administered by the National Directorate of Tax Revenue (DNIT).

Updated 1 October 2026 · 0 of 3 figures checked against official sources

Check your obligations

At a glance

Corporate income tax (IRE)
10%

Plus a tax on dividends

VAT (IVA)
10%

Reduced rate on some goods

Withholding on payments abroad
15%

Up to this effective rate

Corporate income tax

Companies pay IRE at 10%, with a further tax when profits are distributed as dividends. The return is filed within four months of the year-end.

VAT and SIFEN

VAT is 10%, with a reduced rate on some goods, filed monthly. Electronic invoicing through SIFEN is being made mandatory in phases.

Payments abroad

Payments to non-residents carry non-resident income tax of up to an effective 15%, depending on the payment.

Key dates

  • MonthlyVAT return
  • Within four months of the year-endIRE return

Figures and sources

3 figures
  • Corporate income tax rate10%
    Ley 6380/2019
    Under professional review
  • VAT (IVA) rate10%
    Ley 6380/2019
    Under professional review
  • Withholding on payments to non-residents15%
    Ley 6380/2019
    Under professional review

Indicative only. This assessment is a high-level overview of tax obligations in Paraguay based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Paraguay (a Paraguayan contador) before making compliance decisions.