This article provides a data-driven overview of corporate tax requirements for companies operating in Paraguay in 2025. You’ll find current rates, assessment criteria, and important details on dividend taxation, formatted for clarity and efficient decision-making.
Corporate Tax Structure in Paraguay
Paraguay applies a straightforward flat-rate corporate income tax system as of 2025. All resident companies are assessed on their worldwide income, while non-resident companies are typically taxed on Paraguay-sourced income only. The official currency for tax purposes is the Paraguayan Guaraní (PYG).
2025 Corporate Tax Rates and Dividend Withholding
| Tax Type | Rate (%) | Applicability | Currency Code |
|---|---|---|---|
| Standard Corporate Income Tax | 10% | Taxed on corporate profits | PYG |
| Dividends & Utilities – Non-Resident Head Office | 15% | On profits distributed/credited to non-resident parent | PYG |
| Dividends & Utilities – Resident Head Office | 8% | On profits distributed/credited to resident parent | PYG |
Assessment Basis
The corporate tax in Paraguay is assessed at the corporate entity level. There are no graduated brackets: companies are subject to a flat tax rate on their taxable profits.
Surtaxes on Dividends and Profit Distributions
Additional taxes (surtaxes) apply when Paraguayan companies distribute profits or dividends. The rate depends on the residency status of the recipient head office:
- Non-resident head offices: 15% tax on distributions
- Resident head offices: 8% tax on distributions
These rates are separate from the corporate income tax and apply specifically at the point of profit transfer or crediting.
Tax Brackets and Holding Periods
Paraguay’s system does not employ progressive tax brackets for corporate income tax, nor are there specific minimum or maximum holding periods applicable for the rate structure. All eligible companies are subject to the same flat rate.
Summary Table: Paraguay Corporate Taxation (2025)
| Attribute | Details |
|---|---|
| Corporate Tax Type | Flat rate |
| Standard Rate (%) | 10% |
| Applicable Base | Corporate profits |
| Progressive Brackets | None |
| Dividend Surtax (Non-Resident) | 15% |
| Dividend Surtax (Resident) | 8% |
| Minimum/Maximum Holding Period | Not specified |
| Currency | PYG (Paraguayan Guaraní) |
Pro Tips for Navigating Corporate Tax in Paraguay
- Always verify whether your company structure leads to distributions to a resident or non-resident head office, as this significantly impacts the applicable dividend tax rate.
- Since Paraguay uses a flat corporate tax with no brackets, there’s no tax planning benefit to adjusting company income to fit within lower bands.
- When distributing profits, account for surtax obligations early in financial planning to avoid unexpected liabilities at dividend declaration time.
- Monitor for regulatory updates through Paraguay’s tax authority website—official guidelines can affect your obligations, especially for non-residents.
For corporate groups, the dividend withholding distinctions between resident and non-resident entities are a key consideration, as they affect the net amount remitted abroad and the group’s effective tax rate.
Key Points to Remember
Paraguay’s corporate tax regime for 2025 is simple—a flat 10% rate on profits, with additional taxes on dividend and utility distributions that vary by the residency of the head office. There are no brackets or holding period requirements, simplifying forecasting and compliance. Staying updated on regulatory changes via the official government site ensures continuous compliance with evolving requirements.