Countries › Paraguay › Guide › 6. Taxes › Small business tax regimes in Paraguay: SIMPLE and RESIMPLE for sole proprietors and small entities

Small business tax regimes in Paraguay: SIMPLE and RESIMPLE for sole proprietors and small entities

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-28 · Status: Stable

Two optional regimes simplify IRE for small operators. SIMPLE, for sole proprietorships and other private entities with prior year income up to PYG 2,000,000,000, taxes 10 percent of the lower of real net income or 30 percent of gross billing, so tax never exceeds 3 percent of turnover. RESIMPLE, for sole proprietorships with prior year gross income up to PYG 80,000,000, replaces IRE with a fixed monthly payment of PYG 20,000 to 80,000 and takes them out of IVA. Importers and exporters cannot use either regime, and companies such as S.A., S.R.L. and EAS are not eligible.

USD figures use PYG 5,868.31 per US dollar, the Banco Central del Paraguay reference quotation for 28 October 2026 (planilla de cotizaciones of that day). Conversions are for orientation only.

Key facts

SIMPLE regime prior year income ceiling	2000000000 PYGLey 6380/2019 art. 26, as of 2026-10-28 · in force
SIMPLE presumed net income, share of gross billing	30 %Ley 6380/2019 art. 26, as of 2026-10-28 · in force
RESIMPLE regime prior year gross income ceiling	80000000 PYGLey 6380/2019 art. 27, as of 2026-10-28 · in force
Highest RESIMPLE monthly payment	80000 PYGLey 6380/2019 art. 27, as of 2026-10-28 · in force

The rule

1. SIMPLE. Sole proprietorships and private entities not listed elsewhere in art. 2 (numerals 1 and 8) whose accrued income of the previous year did not exceed PYG 2,000,000,000 may opt in. Net income is the lower of documented income less expenses (including purchases of goods, equipment and works on the premises) or 30 percent of gross annual billing, taxed at 10 percent. Losses are not carried forward. Sole proprietorships in SIMPLE are not subject to IDU. The PYG 2,000,000,000 threshold stays fixed for the first five fiscal years of the law; from the sixth the Executive may lower it by up to 10 percent a year, never below PYG 1,000,000,000.
Cost to do it: Maximum tax 3 percent of billing; no IDU for sole proprietors.
Example: Billing PYG 1,500,000,000, documented net income PYG 600,000,000: tax on the lower PYG 450,000,000, that is PYG 45,000,000. / On US$255,610 of billing the SIMPLE tax is at most US$7,668.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 26 and 140, 2019-09-25 official text · verified 2026-10-28

2. RESIMPLE. Sole proprietorships with prior year gross income of PYG 80,000,000 or less may opt in and pay a fixed monthly amount: PYG 20,000 up to PYG 20,000,000 of income, PYG 40,000 up to 40,000,000, PYG 60,000 up to 60,000,000 and PYG 80,000 up to 80,000,000. Payments can be grouped quarterly, half yearly or yearly. They must issue sales receipts and support purchases, and are not IVA taxpayers. Buyers' deductions for purchases from RESIMPLE taxpayers fall within the 1 percent of gross income cap.
Cost to do it: PYG 240,000 to 960,000 a year.
Example: Prior year income PYG 55,000,000: monthly payment PYG 60,000, PYG 720,000 a year. / About US$123 a year at that band.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 27 and 15, 2019-09-25 official text · verified 2026-10-28

3. Movement between regimes. New sole proprietorships may choose a regime; importers and exporters must use the general regime. A taxpayer moves by law to the next regime up when it exceeds the threshold, and after a move or voluntary choice cannot change again for three consecutive years unless income exceeds the regime's limit. Real estate sales and rentals by owners of sole proprietorships in these regimes follow IRP rules.
Cost to do it: No fee; the lock in is three fiscal years.
Example: A shop that bills PYG 2,100,000,000 in 2026 must use the general IRE regime from 2027. / A sole trader starting to import must use the general regime.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 28, 29, 30 and 31, 2019-09-25 official text · verified 2026-10-28

Prior year gross income (PYG)	Monthly payment (PYG)	Monthly payment (USD)
Up to 20,000,000	20,000	US$3
20,000,001 to 40,000,000	40,000	US$7
40,000,001 to 60,000,000	60,000	US$10
60,000,001 to 80,000,000	80,000	US$14

RESIMPLE monthly payment scale (Ley 6380/2019 art. 27)

Worked example

A foreign resident opens a sole proprietorship consulting firm that bills PYG 1,200,000,000 (US$204,488) a year with documented costs of PYG 500,000,000.
Real net income PYG 700,000,000 versus presumed PYG 360,000,000: SIMPLE taxes the lower, PYG 36,000,000 (US$6,135).
Under the general IRE regime it would pay PYG 70,000,000 plus IDU on distributions; SIMPLE also removes IDU for a sole proprietorship.
It still charges IVA at 10 percent: only RESIMPLE taxpayers are outside IVA.

Step by step

Check eligibility: entity type (sole proprietorship or art. 2 num. 8 entity), prior year income, and no import or export activity.
Opt in at registration or for the next fiscal year in the DNIT system.
Keep documented income and expenses even under SIMPLE, to compare real and presumed income.
Monitor income against the thresholds; crossing them moves you up by law.
Plan for the three year lock in before opting.

Common traps

S.A., S.R.L. and EAS do not qualify: SIMPLE covers art. 2 numerals 1 and 8 only, and RESIMPLE only sole proprietorships.
Losses under SIMPLE are not carried forward (art. 26).
Corporate customers can deduct purchases from RESIMPLE taxpayers only within the 1 percent of gross income cap (art. 15).
The RESIMPLE amounts can be updated by the Executive for inflation once cumulative CPI exceeds 10 percent (art. 139), and the SIMPLE ceiling can be cut by up to 10 percent a year after the fifth fiscal year (art. 140); confirm current figures with the DNIT.

Sources

Related: Paraguay country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

← Personal income tax (IRP) in Paraguay: 8 percent on capital income, 8 to 10 percent on earnings above PYG 80 millionExcise tax (ISC) in Paraguay: tobacco, alcohol, sugary drinks, fuels and listed goods →

Get rule changes weekly

Free. One email a week from The LatAm Thread.

One more step after you press the button: we take you to Substack, where your email is already filled in. Confirm there to start. No spam, unsubscribe anytime, we never share your address. By subscribing you agree to the privacy policy.