What does Paraguay tax preparation involve?
Assembling and submitting the returns DNIT expects from your RUC profile: an IVA declaration every month, filed as Form 211 under the general regime or Form 120 for some profiles, plus an annual income return (IRP Form 515 or 516 for individuals, IRE Form 500 or 502 for companies) when you have Paraguay-source income. Deadlines fall on the day assigned to your RUC's final digit, not a single national date.
Tax Preparation in Paraguay Is Monthly
The mental model trips up almost everyone from the United States, Canada, or Europe. There is no April. There is no single annual return that captures the year. Paraguay's system runs on monthly declarations through the Marangatu portal, and the obligation exists whether the month produced income or nothing at all.
That last part is the one that bites. A freelancer whose clients are all abroad, with zero Paraguay-source income, still files every month. The return just reports no movement. DNIT treats the filing itself as the compliance event; the amounts on it are a separate question. A RUC that files twelve clean zero-activity returns a year is compliant. A RUC that files nothing has a growing problem, whatever the income situation.
Preparation, then, is not a once-a-year documents-gathering exercise. It is a monthly rhythm: collect the month's invoices, classify the income, run the IVA position, file by the deadline attached to your RUC digit. The bookkeeping page covers the recording work that feeds each return, and the accounting services page shows the whole bundle in one engagement.
Who Needs Tax Preparation in Paraguay
- Anyone with an active RUC. The monthly declaration obligation attaches to the RUC itself, regardless of income origin.
- People with Paraguay-source income. Local consulting, local rent, local business revenue: these trigger IVA and income tax questions that need correct answers on the returns.
- Company owners (EAS, SRL, SA). IRE returns at the entity level, plus the monthly cadence underneath.
- US citizens and other home-country filers with Paraguay filings. Two systems run in parallel; the Paraguay side needs to be clean so the home-country side (FEIE, Form 1116, foreign account reporting) rests on documented facts.
If you hold crypto, note that qualifying crypto activity now also triggers an annual informative return under RG 47/2026. That is a reporting obligation, separate from the monthly cadence, and the RG 47/2026 page covers it in detail.
The Forms, and What Each One Is For
DNIT publishes the official list on its Formularios e Instructivos page. The forms most foreign residents encounter:
| Form | What it declares | Cadence |
|---|---|---|
| 211 (IVA General) | Monthly IVA position for the general regime | Monthly |
| 120 (IVA) | Monthly IVA declaration for profiles registered on Form 120 | Monthly |
| 515 / 516 (IRP) | Personal income tax on Paraguay-source income | Annual |
| 500 (IRE General) | Corporate income, general regime | Annual |
| 502 (IRE RESIMPLE) | Simplified corporate regime for smaller operations | Annual, with quarterly installments |
Which combination applies to you is decided at RUC registration, by your economic activity classification. That is why the classification decision matters more than the registration itself: the code chosen there puts specific forms on your calendar, permanently, until you change it.
Deadlines Run on Your RUC Digit
Paraguay does not give every taxpayer the same due date. DNIT's calendario perpetuo assigns each final RUC digit a fixed filing day in the following month, which spreads the country's filings across the calendar instead of piling them onto one date.
For you, that means "the deadline" is personal. Two businesses with identical activity can have due dates three weeks apart. Assumptions borrowed from other countries, like "everything is due the 15th" or "the end of the month," are how otherwise careful people end up with late filings. The filing calendar guide walks through the by-digit system and the no-movement return.
Domestic Versus Foreign-Source: The Line That Decides Everything
Preparing a Paraguay return starts with one question per income line: where did the value originate? Foreign-source income falls outside Paraguay tax under the territorial system. Paraguay-source income does not, and it is what the annual IRP return exists for.
For individuals, IRP applies to Paraguay-source income above roughly G. 80 million per year, taxed at 8%, 9%, and 10% brackets. At or below that threshold, no payment is due, though the formal obligations attached to your profile still stand. The distinction between "no payment due" and "no filing due" is exactly the kind of detail a preparer exists to get right.
The classification itself is not always intuitive. Work performed in Paraguay for a foreign client, rent from local property, services delivered into Paraguay: each has a rule, and the rules are why foreign-source income rules deserve their own reading.
What We Do
We run the monthly cadence for you: invoices in, classification documented, IVA position calculated, the right form filed by your RUC's deadline, zero-activity months included. The $42 per month plan adds the annual Tax Residency Certificate, the document your home country may want to see. Setup is free in person in Asunción or $249 remote, and the service backs the two things downstream filers always end up needing: a clean DNIT history and paper proof of tax residency.
RUC Filing Service
One service, every month, no deadline math
$35 per month billed annually. Setup free in Asunción, or $249 remote.
From $35/month billed annually ($420/year). Need the annual Tax Residency Certificate too? The filing + certificate plan is $42/month.