The Business Income Tax will tax all Paraguayan income, profits, or earnings derived from any economic, primary, secondary, and tertiary activities, including agricultural, commercial, industrial, or service money, except income taxed by the IRP.
The income produced by assets, rights, and obligations, as well as the actions of disposition of these, as well as any growth in the taxpayer's patrimonial, are all taxable events.
The Law establishes a Simplified Regime for Medium-sized Companies (Its acronyms in Spanish IRE SIMPLE), which is applicable to certain taxpayers who carry out activities taxed by the IRE and who may choose this Regime if their income in the previous fiscal year does not exceed G 2,000,000,000 (Two billion guaranes), or approximately US$ 295,000.
These taxpayers may pay this tax by calculating their net income on a real or assumed basis, whichever is smaller.
Furthermore, the Tax Law establishes a Simplified Regime for Small Businesses (RESIMPLE), which is intended for sole proprietorships that carry out activities taxed by the IRE and may elect this Regime if their gross income accrued in the previous fiscal year is equal to or less than G 80,000,000 (eighty million guaranies), or approximately US$ 12,000.
This regime's taxpayers will pay a monthly amount equal in guaranies, according to the Tax Administration's payment schedule. The tax amount ranges from 20.000 Guaranies (US$ 3) to 80,000 Guaranies (US$ 12), depending on the yearly income.
The Tax Administration may determine that such payments be accumulated on a quarterly, semi-annual, or yearly basis for their efficacy.