Paraguay Tax Tables 2024 - 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 2024. 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.

Paraguay Personal Income Tax Tables in 2024

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 2024.

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 2024

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.

Retirement and Pension Contributions

One of the primary components of social security deductions is for retirement and pension benefits. Both employees and employers contribute to this fund, which is designed to provide financial security for individuals upon reaching retirement age. This system ensures that retirees receive a regular income, supporting them in their post-working years.

Health Insurance Contributions

Health insurance contributions are another significant part of social security in Paraguay. These contributions fund the public health system, ensuring that employees have access to medical care, including hospitalization, outpatient services, and prescriptions. The system aims to promote the health and well-being of the workforce and their dependents.

Family Allowances

Family allowances are a feature of the Paraguayan social security system, funded through payroll deductions. These allowances provide financial support to workers with children, helping to cover the costs of education, healthcare, and other needs. This benefit underscores the value placed on family welfare and the importance of supporting the next generation.

Workplace Injury and Professional Risk Insurance

Employers in Paraguay contribute to a special fund designed to cover workplace injuries and professional risks. This insurance provides protection to workers who suffer from accidents or illnesses related to their job, covering medical treatment, rehabilitation, and compensation for lost wages. It is a crucial element in ensuring workplace safety and supporting injured workers.

Unemployment Insurance

While Paraguay's social security system does not currently include a formal unemployment insurance program, there are provisions in place to support workers who lose their jobs under certain conditions. Employers contribute to severance funds, which can provide financial assistance to employees in the event of job loss due to economic downturns or company restructuring.

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 2024

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.

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.