INCOME TAX
The Income Tax burdens the benefits of originating Paraguayan sources of commercial, industrial activities or of services that are not of Personal character.
They are contributors of the Income Tax:
The unipersonal companies, when their income surpass G. 45,026,223 in the year, (this amount is adjustable annually in agreement with the variation of the Index of Prices to the Consumer).
The societies, anyone is the amount of their income, with or without legal function and position of agent.
Form of Calculation
The tax calculates applying the rate of 30% on the Taxable Net Rent of the year (January to December):
TOTAL INCOME - TOTAL COSTS - EXPENSES NECESSARY TO OBTAIN THE TAXED RENT AND TO MAINTAIN THE SOURCE = TAXABLE NET RENT
INCOME TAX = 30% OVER/ TAXABLE NET RENT.
The contributor will have to make four ADVANCE PAYMENTS of the tax of the exercise in course in the months of May, July, September and November of every year. The advance payments will be equivalent to 25% of the tax eliminated in previous the fiscal year.
Used forms
For the advance payments forms for the IVA will be used such (800 Form or Form 801 according to the case).
For the sworn declaration annual Form 805 is used, if it is company with countable registries; or Form 806, if the company does not count on countable registries.
Even though utilities in some year are not obtained, the contributors will have to annually present/display their Sworn Declaration of Rent accompanied by the Balance sheet for tax purposes and the Demonstrative Panel of Rreviewúo and Depreciación of the Goods of the Assets.
Expirations
In agreement with the completion of the RUC:
- 0-9 sixteenth working day of April
- A-J seventeenth working day of the April
- K-Q eighteenth working day of the April
- R-Z nineteenth working day of the April
The expirations of the advance payments will be equal to those of the IVA.
Documents to present/display:
Balance sheet for tax purposes
Demonstrative panel of Review and Depreciation of Goods of Assets.
The qualified banks to receive the payment of taxes are: National Bank of Promotion, Citibank, Bank of the Parana or in the regional agencies of the Subsecretaria de Estado de Tributacion.
