Paraguay personal income tax (IRP) for self-employed individuals and personal-service providers.
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Cumulative-tax check
band 1 = 50,000,000 × 8% = ₲4,000,000. Band 2 = 100,000,000 × 9% = ₲9,000,000; cumulative at ₲150,000,000 = 4,000,000 + 9,000,000 = ₲13,000,000. Band 3 marginal 10% above ₲150,000,000.
Important distinction
the ₲80,000,000 figure is the gross-income registration/payment threshold. The 8%/9%/10% brackets are applied to net taxable income (renta neta), not to gross turnover.[PwC]
Minimum viable
bank statement for the full tax year in CSV, PDF, or pasted text, plus confirmation of RUC registration, IRP category (RSP 715 / RGC 716), and that the income is Paraguay-source.
Recommended
all legal invoices (facturas) issued and received, IPS contribution records (if an employer or employee), prior-year declaración jurada or DNIT assessment, IVA registration status.
Ideal
complete income and expenditure account, asset/expense register cross-referenced to legal invoices, Marangatú voucher register, evidence that deductions were funded from IRP-taxed income (Arts. 14-15 Ley 6380/19).Arts. 14-15 Ley 6380/19
Refusal if minimum is missing -- SOFT WARN
No bank statement at all = hard stop. Bank statement without legal invoices = proceed with reviewer warning: "This IRP computation was produced from bank statement alone. Under Art. 64 Ley 6380/19, deductions require a properly documented legal invoice (factura legal) representing a real expense directly related to the taxed activity. The reviewer must verify documentation before any deduction is claimed."Art. 64 Ley 6380/19
R-PY-1 -- IRP category unknown
"IRP has two regimes: RSP (Form 715, personal services, progressive 8%/9%/10%) and RGC (Form 716, capital, flat 8%). This skill cannot compute tax without knowing which applies. Please confirm the nature of the income."
R-PY-2 -- Companies / corporate income
"This skill covers resident individuals (IRP) only. Corporate income (IRE -- Impuesto a la Renta Empresarial) and simplified business regimes have separate rules. Escalate to a Paraguayan licensed accountant."
R-PY-3 -- Non-resident / foreign-source income
"Paraguay's IRP is territorial. Non-resident taxation and the source classification of cross-border income require specialised analysis. Out of scope. Escalate to a Paraguayan licensed accountant."
R-PY-4 -- Complex capital gains / property disposals
"Capital gains computations under the RGC regime (real estate, securities, share transfers) require specialised analysis of cost basis and source. Escalate to a Paraguayan licensed accountant."
R-PY-5 -- Arrears / enforcement
"Client has outstanding tax debt or is subject to DNIT enforcement. Mora, omisión de pago and defraudación penalties under Ley 125/1991 are severe. Note the exceptional regularization regime running to 31 Aug 2026 for periods closed up to December 2023. Do not advise. Escalate to a Paraguayan licensed accountant immediately."
R-PY-6 -- IVA (VAT) return requested
"This skill covers personal income tax (IRP) only. For Paraguay IVA, use the paraguay-vat skill if available."
Deduction condition intro
Under Art. 64 Ley 6380/19, RSP taxpayers may deduct expenses directly related to the taxed activity, properly documented with a legal invoice (factura legal), representing a real expense, and funded from IRP-taxed income (Arts. 14-15).Art. 64 Ley 6380/19; Arts. 14-15
1% of gross income cap
A 1% of gross income deductibility cap applies in specific cases (items 7, 8, 20, 21, 22 of the relevant article, and purchases from RESIMPLE contributors).[Source: Ley 6380/19 via impuestospy.com; rsa.com.py]
Territorial basis
Paraguay taxes only Paraguay-source income. Foreign-source income is generally exempt. Before including any cross-border platform payout in RSP income, confirm the income is Paraguay-source.Legislation: Ley N° 6380/2019 [PwC]
Deduction test
An RSP expense is deductible only if it is (1) directly related to the taxed activity, (2) supported by a legal invoice (factura legal), (3) a real expense, and (4) funded from IRP-taxed income of the fiscal year (or from bank/financial/cooperative loans, or remaining IRP-taxed income from the prior 5 fiscal years). Mixed-use expenses must be apportioned to the business portion.Art. 64 Ley 6380/19 (deduction principle); Arts. 14-15 Ley 6380/19 (general conditions)
No standard deduction
There is no statutory fixed "standard deduction" percentage for IRP. Deductions are documentation-based. Some secondary guides cite an illustrative ~30% estimate, but this is not statutory and must not be applied as an official allowance.[RESEARCH GAP -- no published standard/automatic deduction; deductions are invoice-based. Reviewer to confirm.]
1% deductibility cap
Certain expenses (items 7, 8, 20, 21, 22 of the relevant article, and purchases from RESIMPLE contributors) are deductible only up to 1% of gross income.[Source: Ley 6380/19 via impuestospy.com; rsa.com.py] [RESEARCH GAP -- reviewer to confirm exact item list against current statute.]
Standard/reduced IVA rate
Standard IVA rate is 10%; a reduced 5% applies to certain goods (basic food basket, some real estate, pharmaceuticals).[Source: Ley 6380/19; PwC other-taxes]
IPS recorded separately
IPS contributions are social security, computed on gross salary, and recorded separately from the IRP deduction analysis. See Section 5.7 for rates. They are not an IRP "business expense" line for a self-employed RSP taxpayer's own contributions; independent directors/managers/administrators may contribute to IPS optionally.[PwC other-taxes]
Standard IPS total check
9.0% + 16.5% = 25.5%. ✓ (Employer 16.5% commonly described as 14% pension/health/maternity + 2.5% other worker-protection/training levies -- secondary breakdown only; the 25.5% total is authoritative.)
Bank sector total check
11% + 17% = 28%. ✓
Contribution base floor
Contribution base may not be below the legal monthly minimum wage (floor).[Source: IPS portal]
No published cap
No upper ceiling/cap on the general IPS contribution base was found in authoritative sources.[RESEARCH GAP -- no published cap; treat absence as default but flag for reviewer.]
Contribution scope exclusions
Contributions are on all wage items in cash or kind, EXCEPT the annual mandatory bonus (aguinaldo) and family allowance.[PwC]
Micro & Small Enterprises IPS rules
Micro & Small Enterprises (Ley N° 7444/2025, reglamented 2026): IPS = 25.5% on the established minimum taxable base; for owners/responsibles of Small Enterprises, base = 80% of the SMLV for 36 months from issuance of the MIPYMES card.[Source: MTESS Res. 220/2026; irunvillamayor.com.py]
Payment timing
contributions for a month are due in the first days of the following month.
Night-shift check
2,899,048 × 1.30 = ₲3,768,762.40 → ₲3,768,763 (rounded). ✓ [RESEARCH GAP -- a further mid-2026 minimum-wage adjustment is typical but unconfirmed as of this research; use ₲2,899,048 until updated.]
Obligations per DNIT IRP page
issue receipts/vouchers; communicate document numbering; register vouchers in Marangatú; file the declaración jurada; pay the tax.DNIT IRP page
Home office apportionment
Calculate the proportion of the home used for business (dedicated room / floor area). Apply that percentage to rent, electricity, water, internet directly related to the activity, with legal invoices. A dual-use space does not qualify cleanly. Conservative default: 0% deduction until reviewer confirms arrangement.
Vehicle business use
Only the business-use portion of fuel and running costs is deductible, supported by invoices and a usage log. Conservative default: 0% business use until log provided.
Phone/internet mixed use
Business-use portion only, with a reasonable documented estimate. Conservative default: 0% deduction until business percentage confirmed.
1% capped items reviewer flag
Confirm whether an expense falls under the 1% cap (RESIMPLE purchases, listed items 7/8/20/21/22) and recompute the cap against gross income. Flag for reviewer: Confirm item list against current Ley 6380/19 and apply the 1% gross-income ceiling.
Source classification
For platform / cross-border payouts, confirm whether income is Paraguay-source before including. Flag for reviewer: Confirm source; foreign-source income is generally exempt.
RSP vs RGC classification
Confirm whether income is personal services (715) or capital (716). Rental, interest, dividends and capital gains go to RGC (flat 8%); fees for services go to RSP (progressive). Flag for reviewer: Confirm category before applying any rate.
IPS optional contributions
For directors/managers/administrators, IPS contribution is optional; confirm whether the client elected to contribute.
Transitional regularization regime
An exceptional regularization regime (running to 31 Aug 2026) lets taxpayers settle obligations for periods closed up to December 2023 without moratorium interest.[Source: DNIT]
Reform watch
A draft new Código Tributario (MEF, Sept 2025) is in consultation but NOT enacted; the omisión/defraudación ranges above are under the current Ley 125 and subject to pending reform.[Source: MEF draft]
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Quick Reference table
| Field | Value |
|---|---|
| Country | Paraguay (Republic of Paraguay) |
| Tax | Personal Income Tax -- IRP (Impuesto a la Renta Personal) |
| Currency | Guaraní (PYG / ₲) only |
| Tax year | Calendar year (1 January -- 31 December); liability originates at close of fiscal year (31 Dec) [PwC tax administration] |
| Basis | Territorial -- only Paraguay-source income is taxed; foreign-source income generally exempt [Ley 6380/19; PwC] |
| Primary legislation | Ley N° 6380/2019 ("Modernización y Simplificación del Sistema Tributario Nacional"), in force since Jan 2020 |
| Supporting legislation | Arts. 14-15, 64 Ley 6380/19 (deductions); Ley N° 125/1991 (Tax Code -- penalties); RG N° 90/2021 (Marangatú e-filing) |
| Tax authority | DNIT -- Dirección Nacional de Ingresos Tributarios (formerly SET) |
| Social security authority | IPS -- Instituto de Previsión Social |
| Labour / minimum wage authority | MTESS -- Ministerio de Trabajo, Empleo y Seguridad Social |
| Filing portal | Marangatú (electronic; RG N° 90/2021) |
| Filing deadline | Annual return + payment in March of the following year; exact day set by last digit of RUC ("calendario perpetuo") [PwC; DNIT IRP] |
| Validated by | Pending -- requires sign-off by a Paraguayan licensed accountant / DNIT-registered professional |
| Validation date | Pending |
| Skill version | 0.1 |
IRP Categories and Forms table
| Category | Form / obligation code | Basis | Rate |
|---|---|---|---|
| Personal services income (RSP -- Rentas de Servicios Personales) | 715 -- IRP RSP | Net income (renta neta) | Progressive 8% / 9% / 10% [PwC; Ley 6380/19] |
| Capital gains & income (RGC -- Rentas y Ganancias del Capital) | 716 -- IRP RGC | Net income | Flat 8% [PwC; DNIT IRP] |
Tax Rate Brackets -- Personal Services (RSP), tax year 2025 ([Source: PwC, last reviewed 7 Feb 2026, https://taxsummaries.pwc.com/paraguay/individual/taxes-on-personal-income ; statutory basis Ley 6380/19])
| Annual net taxable income (PYG) | Marginal rate | Cumulative tax at top of band |
|---|---|---|
| Up to 50,000,000 | 8% | ₲4,000,000 |
| 50,000,001 -- 150,000,000 | 9% | ₲13,000,000 |
| 150,000,001 and above | 10% | -- |
Capital Gains & Income (RGC) -- Form 716 table
| Income type | Rate |
|---|---|
| Dividends, interest, royalties, rentals, capital gains | Flat 8% on net income [PwC; DNIT IRP] |
Gross-Income Filing / Payment Threshold (RSP) table
| Item | Value |
|---|---|
| Annual gross personal-services income below which IRP is not payable | ₲80,000,000 per year [PwC] |
| Above the threshold | Progressive 8% / 9% / 10% scale applies on net income |
Conservative Defaults table
| Ambiguity | Default |
|---|---|
| Unknown IRP category (RSP 715 vs RGC 716) | STOP -- ask whether income is from personal services or from capital |
| Unknown whether expense is documented with legal invoice | NOT deductible (no invoice = no deduction) |
| Unknown business-use % (vehicle, phone, home) | 0% deduction |
| Unknown expense category | Not deductible |
| Unknown residency / RUC registration | STOP -- confirm RUC registration before computing |
| "Standard deduction %" requested | Do NOT apply a fixed % -- deductions are documentation-based [RESEARCH GAP -- no statutory standard deduction; see Section 5.3] |
| Unknown whether income is Paraguay-source | Treat as out of scope until source confirmed (territorial system) |
| IPS contribution base unknown | Use actual gross salary; never below the legal minimum wage floor |
This is the deterministic pre-classifier. When a bank statement transaction matches a pattern below, apply the treatment directly. Do not second-guess. If none match, fall through to Tier 1 rules in Section 5.
How to read this table. Match by case-insensitive substring on the counterparty name or description as it appears in the bank statement. Paraguay statements are in Spanish. If multiple patterns match, use the most specific. If none match, fall through to Tier 1 rules. Every claimed deduction additionally requires a legal invoice (factura legal) under Art. 64 Ley 6380/19 -- bank match alone is not sufficient.
Income Patterns table
| Pattern | IRP Treatment | Notes |
|---|---|---|
| Client name + TRANSFERENCIA, DEPOSITO, PAGO RECIBIDO, COBRO | RSP gross income (715) | Personal-services income. If IVA-registered, extract net (excl. 10% IVA) |
| HONORARIOS, SERVICIOS PROFESIONALES, CONSULTORIA | RSP gross income (715) | Professional fees -- typical self-employed |
| STRIPE PAYOUT, STRIPE TRANSFER | RSP gross income (715) | Confirm income is Paraguay-source before including (territorial) |
| PAYPAL, WISE, PAYONEER, MERCADO PAGO | RSP gross income (715) | Platform payout -- confirm source and match to invoices |
| UPWORK, FIVERR, WORKANA | RSP gross income (715) | Freelance platform -- confirm Paraguay-source |
| SALARIO, SUELDO, REMUNERACION, EMPLEADOR [name] | Employment income | NOT self-employment -- subject to employer IRP/IPS withholding, not Form 715 self-employed line |
| ALQUILER RECIBIDO, RENTA INMUEBLE | RGC income (716) | Rental income -- flat 8% capital regime |
| INTERESES RECIBIDOS, INTERES | RGC income (716) | Interest income -- flat 8% |
| DIVIDENDOS, DIVIDENDO | RGC income (716) | Dividend income -- flat 8% |
| DEVOLUCION DNIT, DEVOLUCION SET, REINTEGRO IMPUESTO | EXCLUDE | Tax refund from prior period |
| SUBSIDIO, APORTE ESTATAL | Check nature | Revenue subsidy may be income; confirm with reviewer |
Expense Patterns (deductible) table
| Pattern | Category | Treatment | Notes |
|---|---|---|---|
| ALQUILER OFICINA, ALQUILER LOCAL | Office rent | Deductible | Dedicated business premises; factura legal required |
| HONORARIOS CONTADOR, AUDITORIA, CONTABILIDAD | Accountancy fees | Deductible | Directly related to activity |
| HONORARIOS ABOGADO, GASTOS LEGALES (business) | Legal fees | Deductible | Must be business-related |
| UTILES, PAPELERIA, LIBRERIA, INSUMOS OFICINA | Office supplies | Deductible | |
| PUBLICIDAD, MARKETING, GOOGLE ADS, META ADS | Marketing/advertising | Deductible | |
| CAPACITACION, CURSO, SEMINARIO, CONGRESO | Training | Deductible | Must relate to current activity |
| COMISION BANCARIA, GASTOS BANCARIOS, MANTENIMIENTO CUENTA | Bank charges | Deductible | Business account only |
| INTERNET, FIBRA, TIGO, PERSONAL, CLARO, COPACO (business) | Telecoms | Deductible -- business % only | Default 0% if mixed-use (T2) |
| DOMINIO, HOSTING, AWS, CLOUDFLARE | IT infrastructure | Deductible | Software/services directly related |
SaaS and Software table
| Pattern | Category | Treatment | Notes |
|---|---|---|---|
| GOOGLE WORKSPACE, MICROSOFT 365, OFFICE 365 | Software subscription | Deductible | Recurring subscription = operating expense |
| ADOBE, CANVA, FIGMA, NOTION, SLACK, ZOOM | Software subscription | Deductible | |
| ANTHROPIC, OPENAI, GITHUB, DROPBOX | Software subscription | Deductible |
1% Cap / Special Cases table
| Pattern | Category | Treatment | Notes |
|---|---|---|---|
| Purchases from RESIMPLE contributors | Capped purchases | Deductible only up to 1% of gross income | Flag for reviewer |
| Donations / specific listed items (arts. items 7,8,20,21,22) | Capped items | Deductible only up to 1% of gross income | [RESEARCH GAP -- reviewer to confirm exact item list against current Ley 6380/19 text] |
Travel table
| Pattern | Category | Treatment | Notes |
|---|---|---|---|
| AEROLINEAS, LATAM, GOL, BOLETO AEREO | Flights | Deductible if business travel | Must be directly related to activity |
| HOTEL, BOOKING.COM, AIRBNB | Accommodation | Deductible if business travel | |
| TAXI, UBER, BOLT, MUV | Local transport | Deductible if business purpose | |
| COMBUSTIBLE, NAFTA, GASOIL, PETROBRAS, PUMA | Vehicle fuel | Deductible -- business % only (T2) | Requires usage log |
| ESTACIONAMIENTO, PEAJE | Parking/tolls | Deductible -- business % only (T2) |
NOT Deductible table
| Pattern | Category | Treatment | Notes |
|---|---|---|---|
| RESTAURANTE, ALMUERZO, CENA (personal/entertainment) | Personal/entertainment | NOT deductible | Not directly related to activity |
| SUPERMERCADO, DESPENSA, COMPRAS PERSONALES, SUPER | Personal expenses | NOT deductible | Private living costs |
| MULTA, INFRACCION, SANCION | Fines/penalties | NOT deductible | Public policy |
| PAGO IRP, PAGO IMPUESTO, PAGO DNIT | Tax payments | NOT deductible | Income tax cannot reduce income |
| RETIRO PERSONAL, EXTRACCION ATM (personal) | Drawings | NOT deductible | Not an expense |
| Expense without factura legal | Undocumented | NOT deductible | Art. 64 Ley 6380/19 requires legal invoice |
Exclusions table
| Pattern | Treatment | Notes |
|---|---|---|
| TRANSFERENCIA PROPIA, CUENTA PROPIA, ENTRE CUENTAS | EXCLUDE | Own-account transfer |
| PAGO PRESTAMO, CUOTA PRESTAMO, AMORTIZACION | EXCLUDE | Loan principal movement (interest may be relevant -- flag) |
| IPS, APORTE OBRERO, APORTE PATRONAL | IPS contribution | Social security, not an IRP deduction line -- record separately (see Section 5.6) |
| PAGO IVA, IVA DNIT | EXCLUDE | IVA liability payment, not an expense |
Statement Format Reference table
| Bank | Common Patterns | Notes |
|---|---|---|
| Banco Itaú Paraguay | TRANSFERENCIA, DEBITO AUTOMATICO, COMISION | PDF/Excel; Spanish descriptions; date DD/MM/AAAA |
| Banco Continental | TRANSFERENCIA, PAGO, EXTRACCION | PDF; counterparty in description field |
| Banco Nacional de Fomento (BNF) | DEPOSITO, RETIRO, TRANSFERENCIA | PDF; shorter descriptions |
| Sudameris Bank | TRANSFERENCIA, DEBITO, CARGO | PDF/Excel |
| Ueno Bank / digital wallets | TRANSFERENCIA, QR, PAGO | App export; clean counterparty names |
Input line:
15/03/2025 ; ITAU TRANSFERENCIA RECIBIDA ; ESTUDIO LOPEZ S.A. ; PAGO FACTURA 001-001-0000123 ; +11,000,000 ; PYG
Reasoning: Client payment for personal services. Client is IVA-registered, so ₲11,000,000 includes 10% IVA. Net = ₲11,000,000 / 1.10 = ₲10,000,000 (RSP gross income, Form 715). The ₲1,000,000 IVA is collected on behalf of DNIT (excluded from income -- it is a liability).
Classification: RSP gross income = ₲10,000,000. IVA ₲1,000,000 excluded.
Input line:
01/04/2025 ; ITAU DEBITO AUTOMATICO ; ADOBE SYSTEMS ; CREATIVE CLOUD ABRIL ; -250,000 ; PYG
Reasoning: Monthly software subscription directly related to the taxed activity, supported by a legal invoice. Fully deductible operating expense under Art. 64 Ley 6380/19.
Classification: Deductible expense = ₲250,000 (subject to factura legal verification).
Input line:
22/04/2025 ; ITAU TARJETA ; SUPERSEIS ; COMPRA ; -480,000 ; PYG
Reasoning: Supermarket / private living expense. Not directly related to the taxed activity. No deduction. No apportionment.
Classification: NOT deductible. Exclude from deductions.
Input line:
10/01/2025 ; ITAU DEBITO ; IPS APORTE OBRERO ; ENERO 2025 ; -260,914 ; PYG
Reasoning: Employee IPS contribution (aporte obrero) of 9.0% on the legal minimum wage of ₲2,899,048. Check: 2,899,048 × 9.0% = ₲260,914.32 → ₲260,914. [PwC other-taxes; MTESS Res. 677/2025] IPS is social security, recorded separately from the IRP deduction analysis; it is not a Box-style IRP expense line.
Classification: IPS aporte obrero = ₲260,914. Record under social security, not as an IRP business deduction.
Input line:
05/06/2025 ; CONTINENTAL TRANSFERENCIA ; INQUILINO P. GIMENEZ ; ALQUILER JUNIO ; +3,000,000 ; PYG
Reasoning: Rental income falls under the capital regime (RGC, Form 716), taxed at a flat 8% on net income -- NOT under the progressive RSP scale. Net of any documented deductible rental costs.
Classification: RGC income (716) = ₲3,000,000. If no deductible costs, tax = 3,000,000 × 8% = ₲240,000.
Input line:
15/05/2025 ; ITAU TRANSFERENCIA ; CUENTA PROPIA AHORRO ; ; -5,000,000 ; PYG
Reasoning: Transfer between the taxpayer's own accounts. Neither income nor expense. Exclude entirely.
Classification: EXCLUDE.
Revenue Recognition and IVA table
| Scenario | IRP Treatment |
|---|---|
| IVA collected on sales (IVA-registered) | NOT income -- exclude from RSP gross income |
| Input IVA recovered | NOT an expense -- exclude from deductions |
| Input IVA non-recoverable / not registered | IS a cost -- gross amount is the expense |
Standard IPS contribution rates ([Source: PwC other-taxes, last reviewed Feb 2026])
| Party | Rate |
|---|---|
| Employee (Aporte Obrero) | 9.0% of gross salary (withheld by employer) |
| Employer (Aporte Patronal) | 16.5% of gross salary |
| Total | 25.5% |
Banks/financial institutions IPS contribution rates ([Source: PwC other-taxes])
| Party | Rate |
|---|---|
| Employee | 11% |
| Employer | 17% |
| Total | 28% |
Minimum Wage table (Legislation: Resolución MTESS N° 677/2025, effective 1 July 2025 (3.6% increase) [Source: mtess.gov.py/?p=30682; vouga.com.py])
| Item | Amount (PYG) |
|---|---|
| Monthly minimum wage (Salario Mínimo Legal) | ₲2,899,048 |
| Daily wage -- jornaleros (day-rate) | ₲111,502 |
| Daily wage -- mensualizados | ₲96,635 |
| Hourly wage -- mensualizados | ₲12,080 |
| Night-shift monthly minimum (+30%, Labour Code) | ₲3,768,763 |
Filing and Payment table (Legislation: RG N° 90/2021 (Marangatú e-filing); PwC tax administration)
| Item | Detail |
|---|---|
| Tax year | Calendar year; liability originates 31 December |
| Return type | Annual declaración jurada |
| Filing & payment | March of the following year; exact day set by last digit of RUC ("calendario perpetuo") |
| FY2025 deadline | March 2026 |
| Filing method | Electronic via Marangatú |
Non-Deductible Expenses table
| Expense | Reason |
|---|---|
| Expenses without a legal invoice (factura legal) | Art. 64 Ley 6380/19 |
| Expenses not directly related to the taxed activity | Art. 64 Ley 6380/19 |
| Personal living expenses | Not business-related |
| Fines and penalties | Public policy |
| Income tax itself (IRP) | Tax on income |
| Drawings / personal withdrawals | Not an expense |
PARAGUAY IRP -- WORKING PAPER
Tax Year: 2025
Client: ___________________________
RUC: ___________________________
IRP Category: RSP (715) / RGC (716)
IVA-registered: Yes / No
A. RSP GROSS INCOME (Form 715, net of IVA if registered)
A1. Client payments for services ___________
A2. Platform payouts (Paraguay-source only) ___________
A3. Other personal-services income ___________
A4. TOTAL RSP gross income ___________
B. RSP DEDUCTIBLE EXPENSES (directly related + factura legal)
B1. Office rent ___________
B2. Accountancy / legal fees ___________
B3. Office supplies ___________
B4. Software subscriptions ___________
B5. Marketing / advertising ___________
B6. Training ___________
B7. Bank charges ___________
B8. Telecoms (business %) ___________
B9. Travel (business purpose) ___________
B10. Vehicle (business %) ___________
B11. Home office (% apportioned) ___________
B12. 1%-capped items (apply ceiling) ___________
B13. Other documented expenses ___________
B14. TOTAL RSP deductions ___________
C. RSP NET TAXABLE INCOME (renta neta) (A4 - B14) ___________
D. RGC INCOME (Form 716, flat 8%)
D1. Rental income (net) ___________
D2. Interest ___________
D3. Dividends ___________
D4. Capital gains ___________
D5. TOTAL RGC net income ___________
E. TAX COMPUTATION (pass to deterministic engine)
E1. RSP threshold check (gross > ₲80,000,000?) ___________
E2. RSP tax (8%/9%/10% on C) ___________
E3. RGC tax (8% on D5) ___________
E4. TOTAL IRP due ___________
SEPARATE -- IPS (if applicable):
Employee aporte obrero (9.0% / 11% banks) ___________
Employer aporte patronal (16.5% / 17% banks) ___________
REVIEWER FLAGS:
[ ] RUC registration confirmed?
[ ] IRP category (RSP/RGC) confirmed?
[ ] All income confirmed Paraguay-source?
[ ] Every deduction has a factura legal?
[ ] Home office / vehicle / phone business % documented?
[ ] 1% cap applied where relevant?
[ ] IVA excluded from income and from input-recovered expenses?
[ ] IPS recorded separately (not as IRP deduction)?
[ ] Gross-income threshold (₲80,000,000) checked?
Paraguayan Bank Statement Formats table
| Bank | Format | Key Fields | Notes |
|---|---|---|---|
| Banco Itaú Paraguay | PDF, Excel | Fecha, Descripción, Débito, Crédito, Saldo | Most common; Spanish; date DD/MM/AAAA |
| Banco Continental | Fecha, Concepto, Importe, Saldo | Counterparty in concept field | |
| Banco Nacional de Fomento (BNF) | Fecha, Detalle, Débito, Crédito | Shorter descriptions | |
| Sudameris Bank | PDF, Excel | Fecha, Descripción, Monto, Saldo | |
| Ueno / digital wallets | App export / CSV | Fecha, Contraparte, Monto, Referencia | Clean counterparty names; QR payments |
Key Banking Terms table
| Term | English | Classification Hint |
|---|---|---|
| TRANSFERENCIA / TRF | Transfer | Check direction for income/expense |
| DÉBITO AUTOMÁTICO | Direct debit | Regular expense (utility, subscription) |
| DEPÓSITO | Deposit | Potential income |
| EXTRACCIÓN / RETIRO | Withdrawal | Cash withdrawal -- ask what it funded |
| COMISIÓN / CARGO | Charge / fee | Bank charge (deductible if business) |
| INTERESES | Interest | RGC income (716) or bank cost |
| HONORARIOS | Professional fees | RSP income (715) if received |
| ALQUILER | Rent | RGC income if received; deductible if paid (office) |
| FACTURA | Invoice | The deduction-supporting document (factura legal) |
| IPS / APORTE | Social security contribution | Record separately |
If the client provides a bank statement but cannot answer onboarding questions immediately:
ONBOARDING QUESTIONS -- PARAGUAY IRP
1. Are you registered with a RUC? Which IRP obligation(s) -- 715 (RSP) and/or 716 (RGC)?
2. Is your income from personal services (RSP) or from capital -- rent/interest/dividends/gains (RGC)?
3. Is all the income Paraguay-source? Any foreign-source income?
4. Are you registered for IVA? At 10% or with 5% items?
5. Do you have legal invoices (facturas) for the expenses you want to deduct?
6. Home office: dedicated space? What % of floor area?
7. Vehicle: business use? What %? Do you keep a usage log?
8. Phone/internet: what % is business use?
9. Are you an employee/employer paying IPS? What gross salary base?
10. Was your gross personal-services income above or below ₲80,000,000 this year?
Key Legislation and Authority References table
| Topic | Reference |
|---|---|
| IRP framework, rates, regimes | Ley N° 6380/2019 (https://www.bacn.gov.py/archivos/9332/Ley+6380.pdf) |
| RSP deduction principle | Art. 64 Ley 6380/19 |
| General deduction conditions | Arts. 14-15 Ley 6380/19 |
| Penalties / infractions | Ley N° 125/1991 (Tax Code) |
| Electronic filing | RG N° 90/2021 (Marangatú) |
| Minimum wage | Resolución MTESS N° 677/2025 |
| Authoritative individual-tax summary | PwC Paraguay (https://taxsummaries.pwc.com/paraguay/individual/taxes-on-personal-income) |
| DNIT IRP page | https://www.dnit.gov.py/en/web/portal-institucional/irp |
Paraguay's tax infractions: mora (late payment), contravención (formal breach), omisión de pago (underpayment), defraudación (fraud).
Penalties table
| Infraction | Penalty |
|---|---|
| Contravención (late filing / formality breach, no fiscal harm) | Single fine of ₲50,000 per Resolución General N° 1 (DNIT/SET) [Source: ultimahora.com; RG 13/19 anexo] |
| Mora (late payment of tax) | 4% up to 14% of tax owed, escalating by length of delay (Art. 171 Ley 125/1991) |
| Late-payment interest (recargo moratorio) | 0.05% per day ≈ 1.5% per month, on tax owed [Ley 125/1991] |
| Omisión de pago | Generally 50% of unpaid tax (Ley 125/1991) |
| Defraudación (fraud) | 1× to 3× the defrauded tax (Ley 125/1991) |
Input: RSP, gross personal-services income ₲70,000,000 (below ₲80,000,000), net ₲55,000,000. Expected: Gross is below ₲80,000,000 → IRP not payable for the year. Filing obligations may still apply; tax due = ₲0. [PwC]
Input: RSP, net taxable income ₲120,000,000 (gross above ₲80,000,000). Expected: First ₲50,000,000 × 8% = ₲4,000,000; next ₲70,000,000 × 9% = ₲6,300,000. Total tax = 4,000,000 + 6,300,000 = ₲10,300,000.
Input: RSP, net taxable income ₲200,000,000. Expected: ₲4,000,000 (band 1) + ₲9,000,000 (band 2 full) + (50,000,000 × 10% = ₲5,000,000) = ₲18,000,000.
Input: RGC net income ₲40,000,000 (rental + interest). Expected: 40,000,000 × 8% = ₲3,200,000.
Input: ₲5,000,000 expense claimed with no factura legal. Expected: Disallow. Not deductible under Art. 64 Ley 6380/19.
Input: Employee on minimum wage ₲2,899,048, general regime. Expected: Aporte obrero 9.0% = 2,899,048 × 0.09 = ₲260,914.32 → ₲260,914. Aporte patronal 16.5% = ₲478,343 (2,899,048 × 0.165 = 478,342.92 → ₲478,343). Combined 25.5% = ₲739,257.
Input: Bank employee, gross salary ₲10,000,000. Expected: Employee 11% = ₲1,100,000; employer 17% = ₲1,700,000; total 28% = ₲2,800,000.
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
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