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