Paraguay's headline corporate income tax (CIT) rate is 10.
The headline personal income tax (PIT) rate is 10.
The standard VAT/GST (or equivalent consumption tax) rate is 10 (5% real estate/some medicine/agriculture). Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
Paraguay operates a territorial tax system under Law 6380/2019: Paraguay-source income is taxed for both individuals and companies; foreign-source income is generally exempt. There is no statutory 183-day day-count test; residency/tax domicile is instead established through a combination of legal immigration residency, obtaining a Paraguayan ID (cedula), and RUC tax registration with the DNIT, alongside a "center of economic and vital interests" test. Since a 2020 rule (General Resolution 73/2020), services performed while physically present in Paraguay are treated as local-source income even if the client is abroad - the trigger is the provider's physical location, not the payer's.
Paraguay has no Controlled Foreign Company regime, and multiple current sources confirm this is not viewed as a near-term legislative priority given the territorial tax structure.
Sources genuinely conflict here: some describe Paraguay as having thin capitalization limits within its broader cross-border tax framework, while others state explicitly that there are no interest-deductibility restrictions specifically tailored under the current regime (with commentators noting future BEPS-driven changes are possible but not yet enacted). Confirm the current position directly with a Paraguay-licensed tax advisor before relying on either characterization.
Paraguay has a notably limited treaty network - sources place it at roughly 3-6 countries in force (Chile, Taiwan, and Uruguay confirmed by multiple sources; Spain, Qatar, and the UAE also cited by some), reflecting Paraguay's reliance on its territorial system rather than treaty-based double-tax relief. Paraguay has no comprehensive income tax treaty with the United States.