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Foreign currency and Paraguayan taxes: exchange differences, FX trading and import values
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Last verified: 2026-10-28 · Status: Stable
For the corporate income tax (IRE), exchange differences on foreign currency operations, including revaluation of balances, are taxable or deductible income, and residents' exchange differences on foreign deposits are Paraguayan source. Individuals' exchange differences from holding foreign currency, deposits or credits are exempt from personal income tax (IRP). Buying and selling foreign currency is exempt from VAT (IVA), but the dealer's positive spread must be declared, and imports are taxed on the guaraní equivalent of the customs value.
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
| Exchange differences in corporate income tax (IRE) | Taxable (gains) or deductible (losses), including revaluation of balances Ley 6380/2019 art. 8 num. 5, as of 2026-10-28 · in force |
|---|---|
| Exchange differences on foreign currency holdings of individuals (IRP) | Exempt Ley 6380/2019 art. 56 num. 4, as of 2026-10-28 · in force |
| IVA on sale of foreign currency | Exempt Ley 6380/2019 art. 100 num. 1 a), as of 2026-10-28 · in force |
The rule
1. IRE: exchange differences are income. Gross income includes exchange differences from foreign currency operations, including those from revaluing balances in that currency, in the manner set by regulation.
Cost to do it: 10 percent IRE on net exchange gains; net losses reduce taxable income.
Example: A company holding US$100,000 when the rate moves from PYG 5,800 to 5,868.31 books a gain of PYG 6,831,000 and IRE of PYG 683,100. / US$100,000 balance, PYG 68.31 per US$ move: about US$116 of IRE.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 8 numeral 5, 2019-09-25 official text · verified 2026-10-28
Cost to do it: 10 percent IRE on net exchange gains; net losses reduce taxable income.
Example: A company holding US$100,000 when the rate moves from PYG 5,800 to 5,868.31 books a gain of PYG 6,831,000 and IRE of PYG 683,100. / US$100,000 balance, PYG 68.31 per US$ move: about US$116 of IRE.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 8 numeral 5, 2019-09-25 official text · verified 2026-10-28
2. Source rule for residents. Interest, commissions and gains on capital deposited in banks abroad, exchange differences and dividends from foreign entities are Paraguayan source income when the investing or beneficiary entity is incorporated or resident in Paraguay.
Cost to do it: IRE at 10 percent on those items.
Example: A Paraguayan company's interest on a US dollar deposit in New York is taxed in Paraguay. / Interest of US$10,000 abroad: US$1,000 of IRE.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 6 numeral 4, 2019-09-25 official text · verified 2026-10-28
Cost to do it: IRE at 10 percent on those items.
Example: A Paraguayan company's interest on a US dollar deposit in New York is taxed in Paraguay. / Interest of US$10,000 abroad: US$1,000 of IRE.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 6 numeral 4, 2019-09-25 official text · verified 2026-10-28
3. IRP exemption for individuals. Exchange differences arising from holding foreign currency or deposits or credits in foreign currency are exempt from personal income tax.
Cost to do it: PYG 0 of IRP on such exchange differences.
Example: An individual's dollar savings account gains in guaraní terms without IRP. / US$50,000 held, no IRP on the guaraní gain.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 56 numeral 4, 2019-09-25 official text · verified 2026-10-28
Cost to do it: PYG 0 of IRP on such exchange differences.
Example: An individual's dollar savings account gains in guaraní terms without IRP. / US$50,000 held, no IRP on the guaraní gain.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 56 numeral 4, 2019-09-25 official text · verified 2026-10-28
4. IVA and FX trading. The transfer of foreign currency is exempt from IVA, but in the sworn return the dealer must report the positive difference between the selling price and the acquisition cost of foreign currency bought and sold. Cards and digital payments for services from abroad through banks, finance companies or exchange houses make these entities collection agents for IVA on digital services.
Cost to do it: No IVA on buying dollars; exchange houses report their spread.
Example: Buying US$100,000 (PYG 586,831,000) carries no IVA. / US$100,000 conversion, US$0 IVA.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 96 numeral 3, 97 and 100 numeral 1 a), 2019-09-25 official text · verified 2026-10-28
Cost to do it: No IVA on buying dollars; exchange houses report their spread.
Example: Buying US$100,000 (PYG 586,831,000) carries no IVA. / US$100,000 conversion, US$0 IVA.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 96 numeral 3, 97 and 100 numeral 1 a), 2019-09-25 official text · verified 2026-10-28
5. Imports in foreign currency. On final import the IVA base is the guaraní equivalent of the customs value expressed in foreign currency, determined under the customs laws, plus customs taxes (even if suspended) and other taxes before release, excluding IVA itself.
Cost to do it: IVA at the applicable rate on the guaraní base.
Example: Goods with a customs value of US$50,000 have a base of PYG 293,415,500 before duties, at the 28 October 2026 reference rate (the customs rate may differ). / US$50,000 customs value converted to guaraníes for IVA.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 85 (import base), 2019-09-25 official text · verified 2026-10-28
Cost to do it: IVA at the applicable rate on the guaraní base.
Example: Goods with a customs value of US$50,000 have a base of PYG 293,415,500 before duties, at the 28 October 2026 reference rate (the customs rate may differ). / US$50,000 customs value converted to guaraníes for IVA.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 85 (import base), 2019-09-25 official text · verified 2026-10-28
| Item | Treatment | Norm |
|---|---|---|
| Company FX differences | IRE income or loss, incl. revaluation | Ley 6380 art. 8 num. 5 |
| Resident's foreign deposit income and FX differences | Paraguayan source | Ley 6380 art. 6 num. 4 |
| Individual's FX differences on holdings | IRP exempt | Ley 6380 art. 56 num. 4 |
| Buying or selling foreign currency | IVA exempt; spread declared | Ley 6380 art. 96 num. 3, 100 num. 1 a) |
| Imports | Guaraní equivalent of customs value | Ley 6380 art. 85 |
Foreign currency in Paraguayan taxes
Worked example
- Year end revaluation: a company with a US$200,000 payable to its parent and the dollar rising from PYG 5,800 to 5,868.31 books an exchange loss of PYG 13,662,000, deductible for IRE (subject to the general requirements), saving PYG 1,366,200 of IRE.
Step by step
- 1. Keep foreign currency balances identified by currency in the accounting records.
- 2. Revalue them at year end as the regulation requires and book the differences.
- 3. Include net exchange differences in the IRE return.
- 4. For imports, keep the customs clearance with the conversion used.
- 5. Individuals: keep evidence that a gain is from holding foreign currency (exempt) and not from another IRP category.
Common traps
- Unrealized revaluation differences count for IRE (art. 8 num. 5), not just realized ones.
- The IRP exemption covers holding foreign currency, deposits or credits only; other gains in dollars may be taxable.
- The regulation sets the rate to use; do not assume the BCP reference rate is the tax rate without checking.
Sources
- Ley Nº 6380/2019, text published by DNIT
- Ley Nº 6380/2019, promulgation record (BACN)
- Banco Central del Paraguay, cotización referencial diaria
Related pages
- fx/fx-and-capital-flows
- taxes/corporate-income-tax-ire
- taxes/personal-income-tax-irp
- taxes/iva-value-added-tax
- taxes/customs-duties-on-imports
- /country/paraguay/
- /calendar/
- Live dashboard
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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