Paraguay: introduction of individual income tax – consequential matters

On 13 August 2012, the Ministry of Finance issued General Resolution No. 80, which clarifies the scope of the recently introduced individual income tax (IRP)

The resolution addresses the issue of profits earned before the IRP came into force, as well as dividends from those profits.

Such profits or dividends are not subject to IRP, even though paid after the entry into force of the IRP.