International

Paraguay Tax Revenue Rises as Domestic Collections Offset Weaker Customs Receipts

Businesses, Economy, International, Taxation /

Paraguay Tax Revenue Rises as Domestic Collections Offset Weaker Customs Receipts Paraguay’s tax authority reported higher revenue in July 2026, with strong growth in domestic tax collections offsetting weaker customs receipts. The figures provide another indication of resilient domestic economic activity without changes to the country’s headline corporate tax rate. Paraguay’s National Directorate of Tax Revenues (DNIT) collected ₲4.086 trillion — approximately US$684.9 million — in July 2026, representing a 3.6% increase compared with the same month of 2025. The strongest performance came from domestic taxation. The General Directorate of Internal Taxes collected ₲2.591 trillion, approximately US$434.4 million, an 8.1% year-on-year increase. According to the DNIT, VAT collections were supported particularly by commerce, electricity and water, business services, household services, telecommunications and information and communication activities. citeturn118325search0 Customs revenue moved in the opposite direction. Collections amounted to approximately ₲1.495 trillion, 3.5% below July 2025. The DNIT attributed much of the decline to the appreciation of the Paraguayan guaraní, which reduced the local-currency taxable base of imports. citeturn118325search0 Between January and July, total DNIT revenue reached ₲25.817 trillion, 2.1% above the corresponding 2025 period. For foreign investors, the figures are relevant because Paraguay continues to increase fiscal revenues while maintaining a comparatively low-tax corporate framework. The standard Corporate Income Tax (Impuesto a la Renta Empresarial – IRE) remains at 10%, while VAT generally applies at 5% or 10% depending on the transaction. The authorities are simultaneously increasing digitalisation and tax control. In August, the DNIT introduced new digital tools designed to simplify taxpayer registration and administrative procedures while improving access to verified public data and strengthening enforcement capabilities. citeturn118325search5 The combination of moderate tax rates, growing collections and greater digital administration will be an important factor to monitor as Paraguay seeks to preserve fiscal competitiveness while improving compliance. Sources: DNIT — July 2026 tax collection figures; DNIT — New digital tax tools

Paraguay Tax Revenue Rises as Domestic Collections Offset Weaker Customs Receipts Read More »

Paraguay Opens New Route for Private Investment in Renewable Power

Businesses, Economy, International /

Paraguay Opens New Route for Private Investment in Renewable Power Paraguay is putting into operation a new regulatory framework for private investment in solar, wind, biomass and other non-hydroelectric renewable energy, creating opportunities beyond the country’s traditional dependence on large hydroelectric plants. Paraguay’s Vice Ministry of Mines and Energy has published new implementing rules establishing procedures for licensing private renewable-energy projects under Law 7,599/2025, which modernised the regulatory framework for non-conventional renewable generation. The measures cover licences for self-generation, cogeneration, commercial generation and electricity exports. They also establish procedures for ANDE, Paraguay’s national electricity utility, to determine reference prices for purchasing electricity produced by private renewable generators and define compensation mechanisms where technical or operational restrictions affect supply. The framework represents a significant change for an electricity system historically dominated by hydroelectric generation from Itaipú, Yacyretá and Acaray. The government wants private solar, wind, biomass and biogas investment to complement hydropower as domestic electricity demand expands. For investors, the relevance extends beyond electricity generation itself. Industrial companies may increasingly be able to assess self-generation or cogeneration projects as part of their operating strategy, while specialist developers can explore projects intended to supply the national system or potentially export power.   The government has identified diversification of generation as necessary to strengthen energy security and support future industrial growth. Paraguay’s electricity consumption has been rising rapidly, increasing pressure on generation, transmission and distribution infrastructure. The new rules do not eliminate project-specific risks. Connection capacity, tariffs, permitting, financing and the commercial relationship with ANDE will remain central to investment decisions. Nevertheless, the establishment of practical licensing and pricing procedures removes part of the regulatory uncertainty that previously limited private participation. For international renewable-energy developers and energy-intensive industries, Paraguay’s electricity market is therefore beginning to evolve from an almost exclusively hydroelectric system towards a broader private renewable-investment opportunity. Sources MOPC – Implementing resolutions for renewable energy projects MOPC – Regulation of Paraguay’s new renewable-energy framework  MOPC – Law 7,599/2025 and energy-sector legislation

Paraguay Opens New Route for Private Investment in Renewable Power Read More »