Regime Rate
10%
Under the Simple Regime
Standard Top Rate
10%
without this regime
Duration
Unlimited
No expiry — permanent regime
Target Profile
Simplified Regime
Paraguay
Tax Savings Illustration
Example: €150,000 Annual Gross Income
Under Simple Regime
N/A
Standard Rate
10%
Annual Saving
—
Eligibility Requirements
Who qualifies?
- Self-employed and small businesses with annual income <₲500M (≈$67,000)
How the Regime Works
Full details
Simplified tax: 10% IRP on net income. Quarterly filing. Exempt from IVA if below threshold.
Regime vs Standard Rates in Paraguay
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Income Tax (top rate) | 10% | 10% | — |
Frequently Asked Questions
What is the Simple Regime in Paraguay?
The Régimen Simplificado para Pequeños Contribuyentes is a special tax regime in Paraguay that provides 10% flat rate to qualifying individuals or entities. Simplified tax: 10% IRP on net income. Quarterly filing. Exempt from IVA if below threshold. Legal basis: SET Resolution 32/2021.
Who is eligible for the Simple Regime?
Eligibility for the Simple Regime is limited to: Self-employed and small businesses with annual income <₲500M (≈$67,000). Applicants typically must not have been Paraguay tax residents during a specified prior period. Always verify current conditions at the source: SET Resolution 32/2021.
How much tax do you pay under the Simple Regime?
Under the Simple Regime, you pay 10% flat rate on qualifying income — significantly lower than Paraguay's standard top rate of 10%. On €150,000 gross, you save thousands of euros per year.
How long does the Simple Regime last?
The Simple Regime is a permanent regime with no set expiry — it applies for as long as you continue to meet the eligibility criteria.
How do I apply for the Simple Regime?
Quarterly filing. For complete application procedures, refer to: SET Resolution 32/2021.
Other Special Regimes to Compare
Disclaimer: This information is for general guidance only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making residency or tax planning decisions.