Countries › Paraguay › Guide › 5. FX and capital controls › Dividends and profit repatriation from Paraguay: free transfer, 15 percent IDU and when the tax arises
Dividends and profit repatriation from Paraguay: free transfer, 15 percent IDU and when the tax arises
Argentina. For full detail on Argentina, go to The Argentine Thread.
Last verified: 2026-10-28 · Status: Stable
Dividends and branch profits can be paid abroad freely: Ley 117/91 guarantees free exchange with no restriction on remitting dividends, and no FX approval or registration is needed. The cost is the dividend tax (IDU): 15 percent for non resident shareholders and head offices, withheld by the paying company and final, on top of the 10 percent corporate income tax. The tax arises when the shareholders' meeting resolves the distribution, or for an S.R.L. on the bylaw date or the fourth month after year end, whatever the payment date.
USD figures use PYG 5,868.31 per US dollar, the Banco Central del Paraguay reference quotation for 28 October 2026 (daily planilla). Conversions are for orientation only.
Key facts
| Access to foreign currency for dividends | Free, guaranteed by law with no restrictions Ley 117/91 art. 6, as of 2026-10-28 · in force |
|---|---|
| Dividend tax (IDU) on dividends to non residents | 15 %Ley 6380/2019 art. 43, as of 2026-10-28 · in force |
| IDU on branch profits remitted to the foreign head office | 15 %Ley 6380/2019 art. 40 and 43, as of 2026-10-28 · in force |
| S.R.L. deemed distribution if bylaws are silent | Fourth month after fiscal year end Ley 6380/2019 art. 44, as of 2026-10-28 · in force |
| Combined IRE plus IDU burden on distributed profit to a non resident | 23.5 %Ley 6380/2019 art. 43 and IRE 10%, as of 2026-10-28 · in force |
The rule
1. Free remittance of dividends. A free exchange regime is guaranteed with no restrictions on remitting dividends, interest, commissions, technology royalties and other items abroad; every exchange operation, remittance or transfer remains subject to the taxes set by law. Foreign investors have the same guarantees, rights and obligations as Paraguayan investors, and private investment needs no prior authorization or extra registration.
Cost to do it: No FX permit or Central Bank fee; only the bank's transfer commission and exchange spread.
Example: A dividend of PYG 586,831,000 can be converted and wired abroad the day it is paid. / US$100,000 of dividends leave without any exchange approval.Ley Nº 117/91 De Inversiones, Art. 2, 4, 6 and 10, 1992-01-07 official text · verified 2026-10-28
Cost to do it: No FX permit or Central Bank fee; only the bank's transfer commission and exchange spread.
Example: A dividend of PYG 586,831,000 can be converted and wired abroad the day it is paid. / US$100,000 of dividends leave without any exchange approval.Ley Nº 117/91 De Inversiones, Art. 2, 4, 6 and 10, 1992-01-07 official text · verified 2026-10-28
2. Dividend tax (IDU) on dividends and branch remittances. Profits, dividends or returns made available or paid by Paraguayan companies, and by permanent establishments of foreign entities, to their owners, partners, shareholders or head office are taxed at 15 percent when the recipient is non resident (including the foreign head office) and 8 percent when resident. The base is the net amount distributed; profits sent to the legal reserve, voluntary reserves or capitalization are not taxed until capital is redeemed. Delivering shares from capitalized profits is not a distribution. The payer withholds and is jointly liable; for non residents the tax is single and final.
Cost to do it: 15 percent of the gross dividend paid to a non resident, withheld at source.
Example: Dividend PYG 586,831,000: IDU PYG 88,024,650 withheld, PYG 498,806,350 paid to the foreign parent. / US$100,000 dividend: US$15,000 withheld, US$85,000 received.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 40, 41, 42 and 43, 2019-09-25 official text · verified 2026-10-28
Cost to do it: 15 percent of the gross dividend paid to a non resident, withheld at source.
Example: Dividend PYG 586,831,000: IDU PYG 88,024,650 withheld, PYG 498,806,350 paid to the foreign parent. / US$100,000 dividend: US$15,000 withheld, US$85,000 received.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 40, 41, 42 and 43, 2019-09-25 official text · verified 2026-10-28
3. When the IDU arises. For S.A.s and other entities that must hold meetings, dividends are deemed made available when the shareholders' meeting resolves the distribution, regardless of payment date; capitalization resolved by the meeting must be formalized within twelve months. For S.R.L.s, on the date in the bylaws (a different decision must be notarized), or failing that in the fourth month after the fiscal year end. For sole proprietorships, in the fourth month after year end unless reinvested. For a capital redemption, when the meeting resolves it.
Cost to do it: Late withholding exposes the company to mora and penalties under the tax code (see the tax audits page).
Example: An S.R.L. with a December year end and no bylaw date is deemed to distribute its profit in April of the following year. / A US$100,000 dividend declared in April but paid in September is taxed in April.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 44, 2019-09-25 official text · verified 2026-10-28
Cost to do it: Late withholding exposes the company to mora and penalties under the tax code (see the tax audits page).
Example: An S.R.L. with a December year end and no bylaw date is deemed to distribute its profit in April of the following year. / A US$100,000 dividend declared in April but paid in September is taxed in April.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 44, 2019-09-25 official text · verified 2026-10-28
4. Presumed dividends. Loans to the owner, partners or shareholders (except within financial intermediation up to 2 percent of the loan book), cash shortfalls above 10 percent of the cash account in the financial statements and withdrawals or personal use of company assets without consideration are presumed to be dividends, without proof to the contrary.
Cost to do it: 15 percent IDU on the amount treated as a dividend for a non resident shareholder.
Example: An upstream loan of PYG 586,831,000 to the foreign parent is presumed a dividend and bears PYG 88,024,650 of IDU. / US$100,000 lent to the parent: US$15,000 IDU exposure.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 40, numerals 1 to 3, 2019-09-25 official text · verified 2026-10-28
Cost to do it: 15 percent IDU on the amount treated as a dividend for a non resident shareholder.
Example: An upstream loan of PYG 586,831,000 to the foreign parent is presumed a dividend and bears PYG 88,024,650 of IDU. / US$100,000 lent to the parent: US$15,000 IDU exposure.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 40, numerals 1 to 3, 2019-09-25 official text · verified 2026-10-28
5. Combined burden and treaty relief. Before IDU, company profit bears the 10 percent corporate income tax (IRE). DNIT's treaty page lists comprehensive income tax treaties with Chile (Ley 2965), the Republic of China (Taiwan, Ley 3972), the United Arab Emirates (Ley 6230), Uruguay (Ley 6276) and Qatar (Ley 6387), and DNIT also publishes Ley 7271/2024 approving the treaty with Spain. None is with Argentina, so an Argentine parent gets no Paraguayan treaty reduction and relief, if any, depends on Argentine rules.
Cost to do it: On US$100 of pre tax profit: US$10 IRE, US$13.50 IDU, US$76.50 received, an effective 23.5 percent.
Example: Pre tax profit PYG 586,831: IRE PYG 58,683, IDU PYG 79,222, net to the parent PYG 448,926. / US$100 of profit becomes US$76.50 in the parent's hands.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 21 (IRE rate) and 43 (IDU); DNIT treaty list, 2019-09-25 official text · verified 2026-10-28
Cost to do it: On US$100 of pre tax profit: US$10 IRE, US$13.50 IDU, US$76.50 received, an effective 23.5 percent.
Example: Pre tax profit PYG 586,831: IRE PYG 58,683, IDU PYG 79,222, net to the parent PYG 448,926. / US$100 of profit becomes US$76.50 in the parent's hands.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 21 (IRE rate) and 43 (IDU); DNIT treaty list, 2019-09-25 official text · verified 2026-10-28
| Step | USD | PYG | Norm |
|---|---|---|---|
| Pre tax profit | 100.00 | 586,831.00 | |
| IRE 10 percent | 10.00 | 58,683.10 | Ley 6380 IRE |
| Dividend declared | 90.00 | 528,147.90 | Ley 6380 art. 44 |
| IDU 15 percent withheld | 13.50 | 79,222.19 | Ley 6380 art. 43 |
| Received abroad | 76.50 | 448,925.72 | Ley 117/91 art. 6 |
US$100 of pre tax profit paid to a foreign parent (PYG 5,868.31 per US$, 28 Oct 2026)
Worked example
- A Paraguayan S.A. owned by a Uruguayan parent declares PYG 586,831,000 (US$100,000). It withholds IDU of PYG 88,024,650 (US$15,000), pays it to DNIT and wires PYG 498,806,350 (US$85,000). The Paraguay Uruguay treaty may bear on the parent's home taxation; check the treaty text on the DNIT site before relying on any reduction.
Step by step
- 1. Close the fiscal year, file the IRE return and approve financial statements.
- 2. Allocate the legal reserve and decide what to distribute, capitalize or retain.
- 3. Hold the shareholders' meeting (S.A.) or follow the bylaws (S.R.L.); the IDU arises on that date.
- 4. Withhold 15 percent IDU for non resident shareholders and pay it to DNIT in its form and deadline.
- 5. Buy dollars from a bank or exchange house and wire the net dividend; no FX form or approval.
- 6. Keep the meeting minutes, withholding receipt and bank confirmation for the shareholder's home tax credit claim.
Common traps
- The IDU arises on the meeting date, not payment (Ley 6380 art. 44); declaring and not paying still triggers withholding.
- Capitalized profits must be formalized within twelve months of the meeting (art. 44), and redeeming that capital later is taxed as a dividend (art. 40 and 42).
- Upstream loans and cash shortfalls are presumed dividends (art. 40).
- No treaty with Argentina: an Argentine parent bears the full 15 percent IDU; see The Argentine Thread for the Argentine side.
Sources
- Ley Nº 117/91 De Inversiones (BACN)
- Ley Nº 6380/2019, text published by DNIT
- Ley Nº 6380/2019, promulgation record (BACN)
- DNIT, convenios internacionales (tax treaties)
- DNIT, Ley Nº 7271/24 (Paraguay Spain income tax treaty)
Related pages
- fx/fx-and-capital-flows
- taxes/dividend-tax-idu
- taxes/corporate-income-tax-ire
- taxes/tax-treaties
- fx/capital-contributions-and-repatriation
- exiting/exiting-paraguay
- /country/paraguay/
- /calendar/
- Live dashboard
- https://theargentinethread.com/guide/
Related: Paraguay country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide
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