I always tought that Paraguay had a 0% Income Tax, but now I'm reading that last year they introduced Income Tax of 10%(Wich only apllies to the top %, beacause of a pretty high).
I found this:
http://www.businessweek.com/ap/financia … DK5B80.htmhttp://www.us.kpmg.com/microsite/tax/ie … 10-026.pdfhttp://www.taxrates.cc/html/paraguay-tax-rates.htmlhttp://www.nationsencyclopedia.com/Amer … ATION.htmlhttp://www.paraguay.com/nacionales/se-c … 2013-53273
The info form the pdf seems to legit because it comes from a firm connected with KPMG.
Any accountants or tax specialist in here?
-Does anybody here knows what the current status is, did this 10% income law fall thru?
-I've you have income from abroad, let's say some freelance work or advertisement income on the internet, is this considered taxable income in Paraguay?
-Is it easy to file taxes (for individuals and companies)?
-What about property tax when youown a house?
Taxes
The law was passed and approved by Congress, but it's application is delayed until 2013 so it is not enforced as now.
It would be applied to those earning 20 times the minimum wage (or 10x cant remember) but you can discount any expenses like food, entertainment etc etc. The tax is basically to promote the "request" of invoices everywhere thus get more VAT from operations that curently dont provide invoices.
You can apply for online password and manage your taxes online eg: print payment bill so you go straight to cashier at banks to pay, etc. I wouldnt say it is easy as I dont know other systems, plus I am economist thus familiar with the forms etc.
Property tax is paid to local councils. The land value is so outdated. You pay 1% tax on current official value. At big cities you pay fee for lighting, sewage, waste collection and sometimes a fee for asphalt street as the municipality collects from owners and tax somehow the extra value added to properties.
capelo wrote:It would be applied to those earning 20 times the minimum wage (or 10x cant remember) but you can discount any expenses like food, entertainment etc etc.
So for example; I buy a coffee at Havana and get a receipt I can deduct it from my personal Income Tax?
that is right
university or training bills even expenditure overseas eg if you send family abroad and pay university...
a lot if not everything can be deducted
this is the best tax advice consultant:
http://www.ruoti.com.py/v2/estudio/index.php
other could be rodriguez silvero:
http://www.rodriguezsilvero.com.py/
Do you know if foreign earned Iconme is taxable as well as a resident of Paraguay?
Do people that not have enough income to pay taxes still have to file there income to the Paraguayan version of the IRS?
I'm also questioning myself why there are so few rich people living in a Tax Haven like Paraguay, other than maybe safety issues. From the numbers I saw there is only a very small % of people that actually qualify to pay this 10% income tax.
Sorry for all the questions I'm just interested.
i dont know actually.
i havent even take time to get much insight on the tax as it is delayed to 2013... The issue is that from then onwards would be for those earning 20x or more but progressively would go down to those earning 4x minimum wage or so (like by 2018 onwards).
if you can read spanish there is plenty of further information online. I just couldnt care less to read as it is not implemented as now.
But to be short on this Paraguay tax intake is on average 11% of GDP so compared with Argentina, Brazil, Uruguay (all above 27%), Sweden... 47% or so you dont even need to think about taxes here... it is pointless.
So why do we complain about bad roads, poor education and the like? My position is that we need to pay more taxes... urgently. we need concessions to the private sector for roads, airport, river traffic etc.
We have a lot to improve our economic conditions and support those on lower income but we need to act more quickly pollitically speaking.
PMan,
Most expats I know live off of cash they withdraw from their home country bank accounts via ATM's, or they recharge a PY bank account they may have via wire transfer or cash deposit using these foriegn funds in order to keep a small balance available locally. So logically, the only "money trail" that you would have by living like this in PY is the total funds your transferring in to your PY account or withdrawing from your foreign account via ATM. And since many are just using this money for living expenses it would therefor mostly be deductible from taxes.
The trick would then be to make sure you had no more than the amount equal to or less than the.....
"earning 20 times the minimum wage (or 10x cant remember)"
Capelo points to during a year. That should keep you off the tax man's lists I would think.
Of course if you were bringing in large amounts of cash to build condo's or bury in your back yard, then this would also be traceable and taxable. Unless of course you smuggle it in inside your socks and no one see's it being buried in your backyard:)!
