Paraguay Tax Tables 2020 - Tax Rates and Thresholds in Paraguay
This page contains the tax table information used for the calculation of tax and payroll deductions in Paraguay in 2020. These tax tables are used for the tax and payroll calculators published on iCalculator™ PY, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Paraguay or would like to add to or suggest amendments to the information herein then please contact us.
2020 Tax Tables [Quick Links]
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Paraguay Personal Income Tax Tables in 2020
The Income tax rates and personal allowances in Paraguay are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Paraguay Tax Calculator 2020.
Paraguay Residents Income Tax Tables in 2020
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 8% | Income from ₲ 0.000.00 | to | ₲ 50,000,000.00 |
| 9% | Income from ₲ 50,000,000.01 | to | ₲ 150,000,000.00 |
| 10% | Income from ₲ 150,000,000.01 | | and above |
Paraguay Non-residents Income Tax Tables in 2020
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 10% | Flat rate on all taxable income |
In Paraguay, social security deductions made by employees are not deductible from their taxable income for the purposes of income tax calculation. This means that the contributions to the social security system, such as retirement, health insurance, and other social benefits, are made from the employee's gross income before taxes are applied. The tax is then calculated based on the gross income minus these social security contributions, aligning with the country's tax regulations and policies.
Paraguay Social Security and Payroll Deduction Rates in 2020
In Paraguay, the social security system is designed to provide protection and support to workers and their families in various situations such as retirement, health issues, and work-related injuries. Both employers and employees contribute to this system, with deductions made directly from payroll. This overview will detail the types of social security and payroll deductions in Paraguay and explain the purpose of each fund.
Paraguay Social Security in 2020: Rates for Employers and Employees| Category | Employee | Employer | Total |
|---|
| Social Security | 9% | 16.5% | 25.5% |
Paraguay Social Security and Payroll Deduction in 2020: Earnings Thresholds for Employers and Employees| Category | Employee | Employer |
|---|
| Min. | Max. | Min. | Max. |
|---|
| Social Security | n/a | n/a | n/a | n/a |
The social security and payroll deduction system in Paraguay plays a vital role in providing a safety net for workers and their families. By contributing to these funds, employers and employees invest in the collective well-being of the society, ensuring support during retirement, health emergencies, family growth, and work-related challenges.
Paraguay VAT Rates in 2020
VAT rates for Paraguay are reviewed annually, you can use the VAT Calculator to calculate VAT due in Paraguay or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Paraguay VAT Rates| VAT Rate | VAT Description |
|---|
| 5% | Reduced Rate |
| 10% | Standard Rate |
Historic Tax Tables supported for Paraguay
The following tax tables are supported by iCalculator™ PY as part of the suite of free tax tools we provide for Paraguay.