Countries › Paraguay › Guide › 9. Trade and customs › Maquila in Paraguay: the 1 percent single tax regime for export manufacturing and services

Maquila in Paraguay: the 1 percent single tax regime for export manufacturing and services

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

Paraguay's maquila regime, rebuilt by Ley 7547/2025 and Decreto 5714/2026, lets a local company make goods or provide services for a foreign parent and pay a single 1 percent tax on the greater of local value added or the export invoice. Income tax, dividend tax, non resident tax and import duties on contract goods are exempt, inputs come in duty suspended for 12 months, and programmes run up to 20 years, renewable. Approval is a joint ministerial resolution on a CNIME report; operations must start within 18 months and fines run 50 to 100 monthly minimum wages.

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

Key facts

Maquila single tax	1 %Ley 7547/2025 art. 37, as of 2026-10-28 · in force
Maximum maquila benefit term (renewable)	20 yearsLey 7547/2025 art. 13, as of 2026-10-28 · in force
Deadline to start operations after approval	18 monthsLey 7547/2025 art. 15, as of 2026-10-28 · in force
Pure maquila local sales cap	10 percent of prior year export volume %Ley 7547/2025 art. 18, as of 2026-10-28 · in force
IVA refund cap for services maquila	0.5 percent of the greater of value added or export invoice %Ley 7547/2025 art. 39, as of 2026-10-28 · in force
Maquila raw materials maximum stay	12 months, extendable once monthsLey 7547/2025 art. 14, as of 2026-10-28 · in force
Maquila fines	50 to 100 monthly minimum wages Ley 7547/2025 art. 33, as of 2026-10-28 · in force
Maquila exports January to July 2026 (preliminary)	860 USD millionSE CNIME statistical report July 2026, as of 2026-10-28 · in force
Jobs linked to maquila, July 2026 (preliminary)	38905 jobsSE CNIME statistical report July 2026, as of 2026-10-28 · in force
Monthly minimum wage used for maquila fines	3044000 PYGRes. MTESS 670/2026, as of 2026-10-28 · in force
BCP reference rate used for conversions (28 Oct 2026)	5868.31 PYGBCP planilla de cotizaciones, as of 2026-10-28 · in force

The rule

1. What maquila is. A company set up in Paraguay performs industrial processes (transforming, assembling or repairing temporarily imported foreign goods for re export) or services used abroad, under a maquila contract with a company domiciled abroad (the matriz). Companies and sole proprietorships, Paraguayan or foreign but domiciled in Paraguay and able to trade, may apply. Variants include pure maquila, maquila using idle capacity of a plant serving the local market, sub maquila with a local subcontractor holding its own approved programme, and shelter programmes.Ley Nº 7547/2025 Del régimen de maquila, Art. 1, 3, 4, 25, 26 and 27, 2025-09-08 official text · verified 2026-10-28 · changed: Ley 7547/2025 replaced Ley 1064/1997 and added maquila of services; programmes approved under Ley 1064 kept its terms for 12 months after the new law took effect and then migrate automatically.

2. Approval. Programmes are approved by a joint resolution of the Ministers of Industry and Commerce and of Economy and Finance based on a technical report of the Consejo Nacional de las Industrias Maquiladoras de Exportación (CNIME), whose executive secretariat sits in the Ministry of Industry and Commerce. The application describes the site, products or services, process, capacity, jobs, investment, the list of goods to import temporarily and the exports, attaching the maquila contract or a letter of intent; with only a letter of intent, the contract must be filed within 180 days of approval or the approval lapses. CNIME may set minimum requirements on jobs, investment, training and clean technology.
Cost to do it: No application fee was found in the law or decree; budget for legal and accounting preparation and the guarantee for suspended taxes.Ley Nº 7547/2025 Del régimen de maquila; Decreto Nº 5714/2026 reglamenta la Ley Nº 7547/2025, Law art. 5, 7, 11 and 12; Decree art. 7, 2025-09-08 official text · verified 2026-10-28

3. Term and start up. Benefits last up to 20 years from the approving resolution and may be renewed for further periods of up to 20 years each. Operations must start within 18 months of approval, extendable once on justified request; otherwise the programme is cancelled. A suspension requested by the company may not exceed 24 months, after which CNIME may cancel the programme.Ley Nº 7547/2025 Del régimen de maquila, Art. 13, 15 and 28, 2025-09-08 official text · verified 2026-10-28

4. Temporary imports. Approved maquiladoras import temporarily, with import taxes suspended, raw materials, parts, packaging and inputs (stay up to 12 months, extendable once by joint resolution for no longer than the original term, requested before expiry), machinery, tools, lab, IT and telecom equipment (may stay while the programme lasts), and containers and trailer boxes (12 months). Imports need prior authorisation from the executive secretariat and are cleared in the DNIT system with the label Importación Maquila. The company must guarantee to DNIT the suspended and conditionally exempt taxes, under Customs Code art. 293, and DNIT may accept global guarantees.
Cost to do it: Guarantee for suspended taxes (cash, bank guarantee, insurance bond, pledge or mortgage, or warrant).Ley Nº 7547/2025 Del régimen de maquila; Decreto Nº 5714/2026 reglamenta la Ley Nº 7547/2025, Law art. 14 and 17; Decree art. 26 to 28, 2026-04-06 official text · verified 2026-10-28

5. The 1 percent single tax. The maquila contract and the activities under the programme pay a single tax of 1 percent on the greater of the value added in Paraguay or the export invoice value; sub maquila contracts pay the same 1 percent. Value added is the sum of local goods and services bought for the contract, salaries and social security paid in Paraguay, depreciation of the maquiladora's own capital goods and the fees it receives. The tax is filed on a monthly sworn return to DNIT, which is due even in months without exports.
Example: Services maquila invoicing PYG 2,934,155,000 to its foreign parent with PYG 1,760,493,000 of local value added pays 1 percent of the greater: PYG 29,341,550. / US$500,000 invoice, US$300,000 value added: single tax US$5,000.Ley Nº 7547/2025 Del régimen de maquila; Decreto Nº 5714/2026 reglamenta la Ley Nº 7547/2025, Law art. 37; Decree art. 43, 2026-04-06 official text · verified 2026-10-28

6. Everything else is exempt. Apart from the single tax and the rules for local sales, the contract and its activities are exempt from all other national taxes except fees for services actually received, including import taxes on contract goods, re export and export, and corporate income tax (IRE), dividend tax (IDU) and non resident income tax (INR) on maquila income. Income from other activities pays ordinary income tax with common expenses apportioned by revenue.Ley Nº 7547/2025 Del régimen de maquila, Art. 38, 2025-09-08 official text · verified 2026-10-28

7. IVA refunds. Maquiladoras of goods and of services can recover input IVA under the exporter refund of Ley 6380 art. 101. For services maquila the refund is capped at 0.5 percent of the greater of local value added or the export invoice, and professional fees are excluded. Mixed operations prorate common expenses.
Example: Services maquila with a PYG 2,934,155,000 invoice: IVA refund capped at PYG 14,670,775. / US$500,000 invoice: refund cap US$2,500.Ley Nº 7547/2025 Del régimen de maquila; Decreto Nº 5714/2026 reglamenta la Ley Nº 7547/2025, Law art. 39; Decree art. 44, 2026-04-06 official text · verified 2026-10-28

8. Local sales. Pure maquiladoras may sell in Paraguay up to 10 percent of the volume exported in the previous year, after notifying the executive secretariat and paying the import taxes due on nationalisation at the date of the definitive import plus internal taxes on the sale, keeping export quality standards. Inputs, finished goods and waste may be nationalised exceptionally on payment of taxes.Ley Nº 7547/2025 Del régimen de maquila; Decreto Nº 5714/2026 reglamenta la Ley Nº 7547/2025, Law art. 18 and 19; Decree art. 39, 2025-09-08 official text · verified 2026-10-28

9. Obligations and sanctions. Maquiladoras must keep goods at declared sites, report suspension within 30 business days, use the computerised current account system, file quarterly reports on investment and jobs, and supply information as sworn statements. Breaches lead to a written warning, fines of 50 to 100 monthly minimum wages (up to 100 for diverting goods, 80 for breaching essential programme conditions, 50 for selling locally without nationalising, 60 for other breaches), suspension for up to six months or cancellation, after an administrative proceeding that must be resolved within three months.
Example: Fine range 50 to 100 monthly minimum wages: PYG 152,200,000 to PYG 304,400,000 at PYG 3,044,000. / About US$25,936 to US$51,872.Ley Nº 7547/2025 Del régimen de maquila, Art. 17, 31 to 35, 2025-09-08 official text · verified 2026-10-28

10. Foreign staff and transition. The migration authority may authorise the stay of foreign administrative and technical staff needed by maquiladoras. Programmes approved under Ley 1064/1997 kept that law's full conditions and benefits for 12 months after Ley 7547 came into force and then join the new regime automatically, keeping their temporary admission terms, investments, guarantees and current account balances, without any increase in tax burden.Ley Nº 7547/2025 Del régimen de maquila; Decreto Nº 5714/2026 reglamenta la Ley Nº 7547/2025, Law art. 30 and 42; Decree art. 54, 2026-04-06 official text · verified 2026-10-28

Item	Rule	Article
Tax	1% of greater of local value added or export invoice, monthly return	Law 37; Decree 43
Other taxes	IRE, IDU, INR, import and export taxes exempt on maquila activity	Law 38
IVA refund	Exporter refund; services maquila capped at 0.5%	Law 39
Term	Up to 20 years, renewable	Law 13
Start	Within 18 months of approval, one extension	Law 15
Inputs	12 months stay, one extension	Law 14
Local sales (pure maquila)	Up to 10% of prior year exports, taxes paid	Law 18
Fines	50 to 100 monthly minimum wages, suspension up to 6 months, cancellation	Law 33

Maquila at a glance (Ley 7547/2025 and Decreto 5714/2026)

Indicator	Value
Exports January to July 2026	US$860 million, up 28% year on year
Exports in July 2026	US$143 million
Jobs linked in July 2026	38,905
Largest export lines	Auto parts 32%, apparel and textiles 16%, aluminium 11%, beverages 11%

Maquila performance, January to July 2026 (SE CNIME, preliminary)

Worked example

A software support centre billing its US parent US$500,000 a year (PYG 2,934,155,000) with US$300,000 of local costs and payroll: single tax 1 percent of the invoice, PYG 29,341,550 (US$5,000), instead of 10 percent IRE plus dividend and non resident taxes; it may also recover input IVA up to PYG 14,670,775 (US$2,500).

Step by step

1. Incorporate or use an existing Paraguayan company or sole proprietorship and sign the maquila contract with the foreign parent (or a letter of intent, then file the contract within 180 days).
2. File the programme with the CNIME executive secretariat at the Ministry of Industry and Commerce with site, process, jobs, investment and import list (Decree art. 7).
3. Obtain the joint ministerial resolution, then post the DNIT guarantee for suspended taxes (Decree art. 28).
4. Request authorisation for each temporary import and clear it as Importación Maquila in the DNIT system (Decree art. 27).
5. Start operations within 18 months; file the monthly single tax return, quarterly investment and jobs reports, and IVA refund claims.

Common traps

The tax base is the greater of value added or invoice value, so transfer prices below local cost do not reduce the tax (Law art. 37).
Monthly returns are required even without exports (Decree art. 43).
Services maquila IVA refunds are capped at 0.5 percent and exclude professional fees (Law art. 39).
Raw materials must be exported within 12 months plus at most one extension; late stock exposes the company to sanctions (Law art. 14; Decree art. 32).
Diverting maquila goods to the local market without nationalising is both a maquila infringement and potentially smuggling (Law art. 32 and 33; Customs Code art. 336 as amended).

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

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