🇵🇾 How tax works
in Paraguay.
2026 · National income tax guide
The calculation, explained.
IRP on personal-service income (including employment): 8% on the first PYG 50m of net income, 9% on the next PYG 100m, and 10% above PYG 150m.
No IRP payment is due if annual gross personal-service income does not exceed PYG 80 million. Capital-gains IRP (flat 8%) is separate.
Doctors: employment and independent practice
The Paraguay comparison is an ordinary resident employment scenario. We have not yet verified a doctor-specific independent-practice regime for this country. Do not apply Indonesia’s NPPN 50% here or enter clinic turnover as salary. Practice deductions, professional contributions and mixed income require additional local research.
Tax brackets · PYG
Each rate applies only to the income inside that band.
| Taxable income slice | Rate |
|---|---|
| 0 – 50,000,000 | 8.0% |
| 50,000,000 – 150,000,000 | 9.0% |
| Above 150,000,000 | 10.0% |
Your worked example
Based on your €100,000 annual gross salary estimate, equivalent to PYG 646,169,768.
- 1. Annual input
- PYG 646,169,768
- 2. Custom deductible expenses
- − PYG 0
- 3. Modeled allowance / base deduction
- − PYG 0
- 4. Modeled taxable base
- PYG 646,169,768
| Taxed portion | Rate | Tax |
|---|---|---|
| PYG 50,000,000 | 8.0% | PYG 4,000,000 |
| PYG 100,000,000 | 9.0% | PYG 9,000,000 |
| PYG 496,169,768 | 10.0% | PYG 49,616,977 |
- 5. Modeled tax credits (capped at tax due)
- − PYG 0
- 6. Included additional tax
- PYG 0
- 7. Income tax
- PYG 62,616,977
- Effective rate = tax ÷ annual input
- 9.7%
- After income tax, before other deductions
- PYG 583,552,791
Sources & assumptions
Sources checked 12 October 2026. The schedule's tax year is shown above; checking a source does not make a simplified model a complete payroll calculation.
Assumptions: single, no dependent children, age 30+, full-year resident, ordinary employment income only. No capital gains, dividends, special expatriate relief or double-tax treaty adjustments.