BKM | Berkemeyer is at the forefront of tax matters in Paraguay and in cross-border operations. Our team has extensive experience advising foreign and local investors to take full advantage of the country’s competitive general tax scheme as well as tax incentive systems, in order to reach an optimal tax planning from local and regional perspectives.
Besides advising in the establishment and start of foreign investments, BKM | Berkemeyer advises and accompanies national and foreign clients on the tax impact that their daily operations generate.
The area of tax litigation and procedures is specialized in defending and representing clients in administrative and judicial processes of claims for due taxes, as well as in those that involve refund and overpayments, obtaining a significant number of favorable resolutions.
| Tax advice
| Tax planning and business reorganizations
| Tax procedures
| Refund of tax credits
| Tax-administrative litigation
| Tax-judicial litigation
| Alternative transfer prices
| Estate planning
| Advice to High-Net-Worth individuals
| Tax incentive schemes
Paraguayan general tax regime
| Capital gains derived from personal services: 8%
| Personal services income tax: 8% to 10%
| Corporate income tax (IRE): 10%
| Tax on profits and dividends to residents (IDU): 8%
| Tax on profits and dividends to non-residents (IDU): 15%
| Non-resident income tax (INR): 15% (effective rates go from 4.5% to 15%) |
| Value Added Tax (VAT): 10% (reduced rate of 5% for certain products and services)
| Selective Consumption Tax (ISC): variable% according to product type
Incidence of municipal taxes is very low.
Tax incentive laws