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Taxation in Paraguay
 
 
 

Direct taxes provide only a small portion of governmental revenues, and payments have been in arrears for years. By far the greatest tax sources are the bauxite-related industries. Companies are taxed on the sum of all net profits.

The corporate income tax has a flat rate of 38%, and the dividend tax is 25%. All the operating costs of a company are tax deductible, at set rates for certain equipment.

The main indirect tax is Paraguay's value-added tax (VAT). As of 1 December 2002, the basic rate for goods was raised from 8% to 10%, and the basic rate for services, from 7% to 8%. Staple foods are exempt from VAT.

 

 
 

 



 


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