Accountant in
Ciudad del Este

What tax and labor obligations does a company in Paraguay have?

A Paraguayan company files VAT and RG 90 every month and, once a year, files the IRE (corporate income tax) together with its financial statements. If it has employees, it pays IPS (social security) contributions every month and meets the annual obligation of the MTESS (Ministry of Labor); when it distributes profits, it withholds IDU. The rates come from Law 6380/2019.

Rates from Law 6380/2019 (IRE, art. 21; IDU, art. 43; IRP, art. 69) and from IPS; RG 90: DNIT — receipt register; MTESS: MTESS Res. 462/2026, art. 6. Verified on 09/26/2026. IRP brackets may be adjusted for inflation (CPI, art. 139).

New in 2026: RG DNIT 49/2026 requires taxpayers that must file financial statements to include in the notes detailed information on the composition and allocation of profits, including reserves. Profits kept in reserves only pay IDU when they are distributed, and this must be clear in the balance sheet.

The IRE is mainly territorial, but art. 6 of Law 6380 treats foreign interest, dividends and exchange differences as Paraguayan-source income for resident companies. More detail in the guide to taxes in Paraguay.

Does my company have to issue electronic invoices (SIFEN)?

If the company is new, yes. Since April 1, 2025, every legal entity registered in the RUC (taxpayer registry) can only issue electronic documents, and DNIT no longer grants paper invoice authorizations (timbrado) (RG DNIT 21/2024, art. 9). Older taxpayers are brought in under the schedule of RG DNIT 52/2026, in 6 groups starting between June 1, 2026 and September 1, 2027. We check your company's situation.

There are two ways to invoice through SIFEN: e-Kuatia, for medium and large companies that integrate their own system, and e-Kuatia'i, a free DNIT solution for small taxpayers with one establishment and one point of issue.

More information on the DNIT electronic invoicing page. Verified on 09/26/2026.

Important: the start date is mandatory. Set up your invoicing system before you start invoicing, not after.

How much does an employee cost in Paraguay with IPS?

At the minimum wage (Gs 3,044,000 since July 1, 2026), the company pays the salary, plus the 16.5% employer contribution to IPS (commercial entity) and the aguinaldo (13th-month bonus): 1/12 of what was earned in the year, with no IPS contribution, paid by December 31. On a monthly basis, the cost comes to about 124.8% of the salary. The employee has 9% withheld for IPS.

Minimum wage under Decree 6225/2026 and MTESS Res. 670/2026 (MTESS); aguinaldo under the Labor Code, art. 243 (MTESS), prorated if the employee worked less than 12 months. Verified on 09/26/2026.

Before hiring, the company registers with IPS and with the MTESS REOP (employer registry); it then reports hires and terminations within 30 business days, reports payroll every month and confirms the Labor Information Books once a year.

Can my company use IRE SIMPLE or RESIMPLE?

It depends on the company type and revenue. IRE SIMPLE is for sole proprietorships and residual entities with income below the legal cap, and excludes the S.A. and the SRL. RESIMPLE is for smaller sole proprietorships, with a fixed monthly fee and no VAT. For an EAS, the IRE SIMPLE option must be confirmed case by case.

Caps and fees from Law 6380/2019 (arts. 26 and 27), adjustable for inflation (CPI, art. 139); we confirm the current figure for your case. Checked on 09/26/2026 on the DNIT page on IRE and RESIMPLE.

Important: a sole proprietorship (individual with a RUC) requires a cédula (Paraguayan ID card), because a foreigner can only register in the RUC with a cédula.

What is the compliance calendar for a company in Paraguay?

The basic rhythm is VAT and RG 90 every month, IPS with each monthly payroll, the IRE and financial statements once a year, and the MTESS Labor Information Books by the last business day of March. On top of that come the IDU when profits are distributed, the aguinaldo in December and, for the foreign owner, immigration deadlines.

Calendar reviewed on 09/26/2026. DNIT sets the exact monthly deadlines; we remind you in advance.

Does the accountant in Ciudad del Este handle my taxes at home?

No. EC handles the company's accounting and taxes in Paraguay; whatever you must file in your country of tax residence is prepared by an accountant licensed there. What we do is give you, at each closing, the documents you will need: balance sheet, IRE paid and distributions with IDU withheld.

What to review with your local accountant:

• Whether your country has a double taxation agreement with Paraguay. DNIT publishes the list of agreements.
• Whether your country lets you credit the IRE or IDU paid in Paraguay, or not.
• Your tax residence: for DNIT, an individual is a tax resident when holding permanent residency (Decree 3181/19, art. 2). The cédula alone does not determine it, and this decides whether the IDU is 8% or 15%.

Important: EC does not advise on taxation in other countries. Our job is to keep the Paraguayan side up to date and documented.

How much does an accountant in Ciudad del Este cost?

It depends on the case: the tax regime, the volume of receipts, the number of employees and whether the company distributes profits. We send you a written quote for your case, stating what the monthly service includes. Taxes and contributions paid to DNIT and IPS are not part of our fees: the company pays them.

• Don't have a company yet? See open a company in Paraguay.
• Need someone in Paraguay to sign and receive notices? See legal representative in Paraguay.
• We serve you at our office in Ciudad del Este.